FLC Group Achieves 87.8% Revenue Growth in 2017

FLC Group Achieves 87.8% Revenue Growth in 2017

Thứ Tư, 13/06/2018, 08:10

On June 12, FLC Group successfully organized Annual General Meeting 2018. Accordingly, the Group reported to reach consolidated revenue of VND11,645 billion ($500.74 million), increasing by 87.8% compared to that in 2016.

Significant product restructuring in 2017

In 2017, FLC Group achieved consolidated revenue and profit after tax of VND11,645 billion ($500.74 million) and VND385 billion ($16.56 million), respectively. Compared to 2016, the revenue gained a 87.8% growth, but the profit after tax decreased by 62%.

The profit decline was attributed to the significant change in product structure. The Group focused on those products with low gross profit but quick return of capital such as condotels and resort services, resulting in a sharp increase in the cost of goods sold from VND4,500 billion ($193.5 million) in 2016 to more than VND10,000 billion ($430 million) in 2017.

In the coming years, the business in hospitality, commercial center and rental office will be more stable, expected to boost revenue and profit growth for the Group.

The Group will also pay 2017 dividends in shares at a rate of 4%/chartered capital. Accordingly, FLC Group plans to issue 27.3 million ordinary shares in the third quarter of 2018 after receiving the approval of the State Securities Commission. Upon this plan, FLC’s chartered capital will go up from VND6,827 billion ($293.56 million) to VND7,100 billion ($305.3 million).

As of December 31, 2017, FLC Group had total assets of VND22,795 billion ($980.19 million), up 27% over the same period in 2016. The book value of FLC shares is VND13,358 ($0.57).

Real Estate takes nearly 50% of total revenue

In 2017, revenue from real estate sales reached over VND5,563 billion ($239.20 million), fulfilling 119% of full-year plan and occupying 47.8% of total revenue.

In the year, FLC Group sold 3,510 products, fulfilling 104% of full-year plan. Especially, FLC Quy Nhon project exceeded the set plan in terms of quantity, contract revenue and turnover. Apartment projects in Hanoi and Ha Long attained over 100% revenue plan.

By the end of December 2017, FLC Group had implemented many real estate projects in 8 provinces throughout Vietnam including Quang Ninh, Vinh Phuc, Hanoi, Haiphong, Thanh Hoa, Nghe An, Quang Binh, Binh Dinh, with total land area of 7,300 hectares covering more than 40 kilometers of coastline, providing more than 2,000 apartments, 1,800 villas and shophouses, 2,800 condotels.

The Group continued to conduct mergers and acquisitions activities in order to accumulate land funds in prime locations in Hanoi and neighboring provinces for the development of real estate projects.

In addition to the core business in real estate, FLC Group also achieved good results in other key segments such as trading of commodities, equipment, construction materials; hospitality; golf; and other services, with total revenue of VND6,082 billion ($261.53 million).

Net profit target at VND560 billion ($2,408 million) in 2018

According to the plan approved at the Annual General Meeting 2018, FLC Group targets to achieve consolidated revenue of VND12,500 billion ($537.5 million) and profit after tax of VND560 billion ($2,408 million), up 7% and 45% on-year, respectively. The dividend rate is set at 4%.

In the third quarter of 2018, FLC Group expects to issue 300 million shares worth VND3,000 billion ($129 million) in order to boost the chartered capital from VND7,100 billion ($305.3 million) to VND10,100 billion ($434.3 million).

The number of new shares will be issued to existing shareholders at a ratio of 100:42, which means each shareholder is entitled to buy 42 new shares for 100 existing shares, at a price of VND10,000/share ($0.43).

The proceeds from this issuance will be used to implement the FLC Quang Binh Beach & Golf Resort (FLC Quang Binh) – a key project launched in late 2016 and developed from 2018.

Mr. Trinh Van Quyet, Chairman of FLC Group, congratulates Mr. Nguyen Thanh Binh and Mr. Le Ba Nguyen, new members of BOD.

With its huge investment in FLC Quang Binh, FLC Group expects to affirm its leading position in the local property market in general and the resort real estate market in particular.

In the aviation field, FLC Group is determined to launch Bamboo Airways at the end of 2018. In the short term, the Group will rent the first 20 aircraft operating at domestic airports, with the headquarters located at Phu Cat airport (Binh Dinh province).The airline will receive 24 aircraft from Airbus in the period of 2019 - 2023 and another 20 aircraft from Boeing in the agreement expected to be signed on June 25 - 26.

Currently, FLC Group has no plan to issue shares to mobilize capital for this airline but utilize its equity and loans. Both Airbus and Boeing have pledged to support capital arrangement for those agreements.

In terms of development strategy, Bamboo Airways is positioned as a traditional airline providing - premium services, as well as low-cost services such as free flights to FLC resorts, for not only domestic customers but also international visitors.


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