Complete Guide to Company Registration in Vietnam 222

EVN recorded a record profit of VND 18,000 billion

Expat in Vietnam July 16, 2022

According to the audited consolidated financial statements for 2021 of the Electricity of Vietnam (EVN), the Group’s net revenue reached more than VND 426,000 billion, an increase of about 6% and pre-tax profit increased to nearly VND 18,000 billion, 17% increase.

Supporting nearly 3,000 billion VND to reduce electricity prices, EVN still has a record profit of 18,000 billion VND - Photo 1.Supporting nearly 3,000 billion VND to reduce electricity prices, EVN still has a record profit of 18,000 billion VND - Photo 1.

Financial activities make a large contribution to EVN’s pre-tax profit, especially exchange rate gain. Accordingly, although net revenue increased by 6% to VND 426,000 billion, the cost of goods sold also increased sharply to nearly VND 388,000 billion, causing the Group’s gross profit to shrink to more than VND 38,000 billion, down 30% compared to 2020. Gross profit margin to single digit with 9%.

Meanwhile, financial revenue of EVN increased nearly 3 times to VND 15,000 billion and financial expenses decreased significantly from VND 22,900 billion to VND 14,800 billion. In 2021, the Group’s profit from the exchange rate difference (with offsetting the exchange rate loss) is nearly 9,500 billion dong, in contrast to the loss of 5,600 billion dong in 2020. Interest expense also decreased by about 3,300 billion dong.

Supporting nearly 3,000 billion VND to reduce electricity prices, EVN still has a record profit of 18,000 billion VND - Photo 2.Supporting nearly 3,000 billion VND to reduce electricity prices, EVN still has a record profit of 18,000 billion VND - Photo 2.

Thus, the profit on exchange rate difference contributes more than half to EVN’s profit before tax along with cost savings, especially interest expense, helping the Group’s profit still grow by 17% despite its business activities. Key businesses have decreased.

In 2021, due to the complicated development of the Covid-19 epidemic, the Government’s resolutions will be implemented. EVN continues to reduce electricity prices, reducing electricity bills for many customers with a total amount of more than 2,900 billion VND. However, this amount compared to EVN’s revenue is not much.

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As of December 31, 2021, EVN’s total assets reached VND 705,400 billion, down VND 24,000 billion compared to the beginning of the year. Total debt decreased to 457,500 billion VND, loans and finance lease debt was about 351,000 billion VND, down 9% compared to 2020. Total cash and bank deposits of the Group also decreased compared to 2020 to 132,500 billion VND.

Source: CafeF

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