Established in 2002, Nagakawa Joint Stock Company (NAG) was formerly known as Nagakawa Vietnam Joint Venture Company. The company primarily sells air conditioners, kitchen appliances, and household goods under the Nagakawa brand, with dozens of branches and a network of nearly 5,000 distributors nationwide.
In the first quarter of 2024, Nagakawa recorded net revenue of nearly VND 680 billion and a net profit of VND 13 billion, corresponding to a growth of 27% and 82% compared to the same period last year.
The surge in air conditioner sales during the hot season, coupled with a significant increase in financial revenue, were the main drivers of these positive results. In this quarter, financial revenue reached VND 4 billion, multiple times higher than the previous year.
According to Nagakawa’s explanation, in 2024, extreme weather conditions and scorching heat led to a surge in demand for air conditioners. Additionally, the company introduced flexible and attractive policies, gaining support from large supermarket systems, distributors, and first and second-level agents. Improvements in the purchasing process, and stabilization and effectiveness of marketing activities also contributed to a reduction in cost ratios and an increase in profits.
Nagakawa’s Business Results for Q1 2024
Unit: Billion VND
Source: VietstockFinance
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For 2024, this air conditioner company sets ambitious growth targets, aiming for net revenue of VND 2,400 billion and after-tax profit of VND 35 billion, corresponding to a growth of 13% and 39% compared to the same period.
Thus, after the first quarter, Nagakawa has achieved 37% of its after-tax profit plan for 2024.
A Bountiful Season for Air Conditioner Retailers
It’s not just Nagakawa; many giants in the electrical appliance industry have also witnessed a surge in revenue from air conditioners. In the first quarter, MWG reported a strong recovery in business results compared to the same period, with a 50% growth in air conditioner sales. According to SSI Securities Corporation, one of the reasons for these outstanding results is the abnormal revenue from air conditioners.
It is expected that MWG’s air conditioner sales will continue to grow significantly as the hot weather persists. Mr. Doan Van Hieu Em, CEO of The Gioi Di Dong (MWG), revealed on his personal Facebook page that Dien May Xanh has supplied over 40,000 air conditioner units and nearly 25,000 air coolers in just three days leading up to the holiday from April 26-28, 2024.
Meanwhile, online air conditioner sales on Shopee, Lazada, Tiki, Sendo, and Tiktok Shop also surged by 54% compared to the same period, reaching VND 163 billion in the first quarter. Specifically, stores on these five platforms sold 380.3 million units of air conditioners and various types of fans during this period.
