Ford distribution agent makes an average profit of 37 million VND per car sold
Ford Vietnam’s largest dealer last year sold more than 4,580 vehicles and averaged 4% gross profit on sales of each vehicle.
The vehicle business contributed 93% to City Auto’s total revenue last year (stock code: CTF), equivalent to VND 4,200 billion. The rest comes from selling parts and providing services.
City Auto gross profit more than 290 billion dong, of which car business brought 172 billion dong. After deducting expenses, the company reported an after-tax profit of approximately VND 52 billion, not fulfilling the plan but increasing by 37 times over the same period.
It is estimated that on average, each car sold in 2021 will collect VND 915 million and profit VND 37.5 million, equivalent to a gross profit margin of 4%.
In 2020, the company sold more than 6,480 vehicles, but only earned 5,260 billion VND and 156 billion VND in gross profit, meaning the average sales and profit reached 811 million and 24 million respectively. The profit will be lower if sales costs, staff salaries, loan interest are included…
City Auto’s management said that last year’s car sales was only half of the plan, but the company is still the largest Ford dealer in Vietnam. The epidemic caused the supply chain to be disrupted, and car manufacturers did not forecast specific supply during the months of social distancing. However, the recovery of the economy after the pandemic, plus supportive policies of the Government and pent-up demand helped business activities rebound strongly in the last months of the year.
This year, the company targets to sell more than 8,820 units, up 93% over the same period. Revenue is expected to increase by 75% to VND 7,884 billion while profit after tax doubles in the same period to VND 104 billion. If completed, this would be the highest profit in the company’s history.
The management said that in the long term, it will invest in new dealers for the current brand and distribute more other car brands in Vietnam. The company does not exclude the acquisition of other dealers, and at the same time prepares the infrastructure to trade electric cars.
at Blogtuan.info – Source: vnexpress.net – Read the original article here