Mercedes dealer reports record loss in Q3
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Hang Xanh Motors Service JSC (Haxaco), a major Mercedes-Benz dealer in Vietnam, reported a record loss, more than VND33 billion ($1.4 million) in Q3, due to social distancing orders.
Revenue in Q3 was VND700 billion, down 59 percent compared to the same period last year.
Social distancing measures applied in Hanoi, Ho Chi Minh City and other localities in this quarter have seriously affected Haxaco and the automobile industry. The company’s two branches in HCMC had to temporarily close in Q3 while another in Hanoi was closed until Sept. 12.
“This has caused a decline in our sales and services during this period,” the company noted.
Between January and September, the auto dealer’s revenue was VND3.4 trillion, down 9 percent over the same period, equivalent to 35 percent of this year’s business plan.
However, profit dropped by 45 percent to VND44 billion.
Despite the revenue decline, the company retains a positive forecast for the last quarter of this year. It has thoroughly prepared to resume operations in the new normalcy, with all employees fully vaccinated to ensure operational safety.
Previously, in the annual meeting at the beginning of the year, the company set a business plan for 2021 with a net profit of VND126 billion.
Questions & Answers
Q.What was the main reason for Haxaco reporting a record loss in Q3?
What was the main reason for Haxaco reporting a record loss in Q3?
The record loss was primarily due to social distancing orders imposed in Hanoi, Ho Chi Minh City, and other areas. These measures led to the temporary closure of Haxaco's branches in HCMC and one in Hanoi.
Q.How much did Haxaco's Q3 revenue decline compared to the previous year?
How much did Haxaco's Q3 revenue decline compared to the previous year?
Revenue for Q3 fell by 59 percent compared to the same period last year, reaching VND700 billion. This significant drop was attributed to the severe impact of social distancing measures on sales and services.
Q.Despite the Q3 loss, what is Haxaco's outlook for the final quarter of the year?
Despite the Q3 loss, what is Haxaco's outlook for the final quarter of the year?
The company maintains a positive forecast for the last quarter, having thoroughly prepared to resume operations. All employees are fully vaccinated, ensuring operational safety in the new normal.
Q.How much profit did Haxaco aim for in its business plan for the full year 2021?
How much profit did Haxaco aim for in its business plan for the full year 2021?
At the annual meeting earlier in the year, Haxaco set a business plan targeting a net profit of VND126 billion for 2021. However, profit dropped by 45 percent to VND44 billion between January and September.
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