Non-aeronautical service businesses do well

In 20222, the Vietnamese aviation market has moved quickly on the road to recovery after long slips. Along with that recovery, the non-aviation service industry with services such as airline meals, duty-free sales, restaurants, business lounges… also benefited.

According to the financial report for the fourth quarter of 2022, Tan Son Nhat Airport Services Joint Stock Company – Sasco (UPCoM: SAS)in the fourth quarter, this business recorded net revenue of nearly 559 billion dong and gross profit of 303 billion dong, up 9 times and 13 times respectively over the same period in 2021. SASCO’s gross profit margin also increased, from 38% increased to 54%.

During the period, financial revenue doubled to VND43 billion, thanks to dividends and exchange rate differences.

When normal business activities returned, SASCO also recorded a sharp increase in selling and administrative expenses to VND 165 billion and VND 96 billion respectively (multiple times the same period).

As a result, SASCO net profit of 89 billion dong in the fourth quarter of 2022, marking the highest profit quarter since the second quarter of 2019, while in the same period only 3 billion dong.

This shows that the operation of service businesses at Tan Son Nhat airport has returned to normal somewhat and may grow further when more foreign tourists come to Vietnam in the near future.

For the whole year of 2022, SASCO recorded a net revenue of VND 1,400 billion, more than 4 times higher than the previous year. Net profit was at 210 billion dong, 70 times higher than the same period last year, but still could not return to the pre-epidemic level and was equivalent to just over 53% of 2019 profit.

Thanks to the gradual resumption of operations, SASCO also has a healthy balance sheet, with more than VND 600 billion in cash and deposits, while having no financial debt. Total assets of the enterprise also increased by about 500 billion VND compared to the beginning of the year, reaching 2,044 billion VND.

Also began to “wake up” when international flights returned more and more bustling, Saigon Ground Service Joint Stock Company (SAGS, HOSE: SGN) recorded net revenue of 298 billion dong and gross profit of 72 billion dong in the fourth quarter of 2022, increasing by more than 2.6 times and 3.6 times respectively compared to the same period in 2021.

Financial activities were insignificant, while administrative expenses in the period only increased by 2.4 times, reaching VND 36 billion, helping the net profit from business activities of Saigon Ground Services to reach 37 billion. VND (4.8 times increase) and net profit is nearly 30 billion VND, equivalent to 3.3 times higher than the same period last year.

For the whole year of 2022, SAGS recorded VND 995 billion in net revenue (up 2 times), nearly VND 138 billion in profit after tax (up 2.6 over the same period).

For the year, SAGS set a consolidated revenue target of VND 795 billion, net profit is estimated at VND 108 billion. Thus, this enterprise has exceeded the plan in terms of both revenue and net profit.

Business Profile - A profitable non-aviation service business

Duty free shops at Noi Bai airport.

Taseco Aviation Services JSC (HOSE: AST) – the company that owns a chain of more than 100 Vietnamese airport retail stores, mainly at Noi Bai and Da Nang airports, has also started to report profits after 2 years of recording losses.

Accordingly, in the fourth quarter, this enterprise recorded 216 billion dong in revenue, up 7.7 times over the same period; over 25 billion dong of after-tax profit (compared to a loss of 18 billion dong in the same period in 2021).

In the whole year, this business has a revenue of 604 billion VND, an increase of nearly 4 times compared to 2021; net profit reached 34 billion dong while in the same period, Taseco lost 128 billion dong.

Thanks to the good business, the financial situation of the business is also better. Total assets increased by 76 billion VND compared to the beginning of the year, reaching 579 billion VND; Equity increased by over 40 billion VND, reaching 455 billion VND, of which undistributed profit after tax was 22 billion VND.

Not having an impressive increase like many other businesses, in 2022, Noi Bai Commodity Services Joint Stock Company (NCTS, HOSE: NCT) revenue was almost flat with the same period in 2021, reaching 736 billion dong; profit after tax reached VND 237 billion, a slight increase of 6% compared to 2021.

After one year of operation, NCTS’s total assets decreased by more than VND 50 billion compared to the beginning of the year, mainly due to the reduction of short-term assets. Equity also decreased slightly by 25 billion dong, remained at 432 billion dong.

Similar, Noi Bai Aviation Catering Joint Stock Company (UPCoM: NCS) In 2022, the loss was eliminated when the net profit increased to over 82 billion dong, reaching 5.3 billion dong. Particularly in the fourth quarter, net profit reached VND 8.5 billion, up 214% compared to the same period in 2021 (loss of VND 7.5 billion).

Da Nang Airport Services Joint Stock Company (HNX: MAS) also started to be profitable in 2022 with over 1.2 billion dong. Although small, compared to the loss of 15 billion dong in 2021, it has also shown prosperity. Meanwhile, revenue grew 130% over the same period last year, reaching 107 billion dong. In the fourth quarter alone, revenue increased 3 times with profit after tax reaching 1.6 billion dong.

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