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2018 plans approved at FLC Group's AGM

Released at: 15:21, 13/06/2018

2018 plans approved at FLC Group's AGM

Photo: FLC Group

Report presented to AGM on June 12 reveals declines in 2017 against 2016 results.

by Ngoc Lan

The FLC Group aims to post total consolidated revenue of VND12.5 trillion ($555.5 million) in 2018 and consolidated after-tax profit of VND560 billion ($24.8 million), up 7 per cent and 45 per cent, respectively, against 2017, according to a plan presented to its annual general meeting (AGM) on June 12.

The expected dividend is 4 per cent. In addition to shares issued as dividends, it will also issue 300 million shares in the third quarter worth VND3 trillion ($133.3 million) to increase its charter capital from VND7 trillion ($315.5 million) to VND10.1 trillion ($448.8 million).

In the field of aviation, the FLC Group is determined to get Bamboo Airways into the skies by the end of the year. In the short term it will lease 20 aircraft, with headquarters at Phu Cat Airport in south-central Binh Dinh province. The carrier will receive 24 Airbus aircraft between 2019 and 2023 and 20 Boeing aircraft under an agreement expected to be signed at the end of June.

The FLC Group posted total consolidated revenue and after-tax profit of VND11.645 trillion ($517 million) and VND385 billion ($17.1 million) in 2017. Revenue reached 87.8 per cent of the 2016 figure but after-tax profit was down 62 per cent.

The fall in profit was due to ongoing restructuring of products with low gross profit margins, such as residential, hotel, resort, and condominium real estate, resulting in a sharp increase in cost of goods sold (COGS) from VND4.5 trillion ($200 million) in 2016 to over VND10 trillion ($444.4 million).

Business in hotels, resorts, shopping centers, and office space will be stable in the years to come, however, creating steady growth in revenue and profit for the Group.

FLC will also pay a 2017 dividend in shares at a rate of 4 per cent of charter capital. It plans to issue 27.3 million ordinary shares in the third quarter after receiving approval from the State Securities Commission of Vietnam. Charter capital will increase from VND6.827 trillion ($303.4 million) to VND7.1 trillion ($315.5 million) as a result.

The Group had total assets of VND22.795 trillion ($1 billion) as of last December, up 27 per cent against 2016.

Total revenue from real estate sales reached over VND5.563 trillion ($247.2 million) in 2017, representing 119 per cent of the plan and accounting for 47.8 per cent of FLC’s total revenue. It sold 3,510 real estate products, or 104 per cent of the plan.

It had implemented a range of real estate projects in eight cities and provinces as of last December, in Hanoi, Quang Ninh, Vinh Phuc, Hai Phong, Thanh Hoa, Nghe An, Quang Binh, and Binh Dinh, on a total area of 7,300 ha and more than 40 km of coastline, offering more than 2,000 commercial apartments, 1,800 villas and townhouses, and 2,800 condotels.

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