Mercedes distributor profits down
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Mercedes distributor Hang Xanh Motors Service Joint Stock Company saw net profits for the third quarter plummet by 87% year-on-year to VND8 billion (US$333,000).
It attributed the fall to plunging sales and increasing costs.
Administrative costs jumped 54% to VND29 billion, according to its audited financial statements.
Its revenues fell by 44% to VND2.9 trillion, its lowest in the last seven years.
For the first nine months of the year its net profit was 93% down at VND14.5 billion, the lowest in eight years.
Prospective buyers are waiting for more positive signals from the economy before buying luxury cars, leading to lower sales and profits, according to the company.
Questions & Answers
Q.What was the main reason given for the significant drop in profits for Hang Xanh Motors?
What was the main reason given for the significant drop in profits for Hang Xanh Motors?
The company attributed the fall in profits primarily to a combination of plunging sales and increasing operational costs. Prospective buyers are delaying luxury car purchases until economic signals improve, impacting sales figures.
Q.How much did administrative costs increase for the distributor in the third quarter?
How much did administrative costs increase for the distributor in the third quarter?
Administrative costs for Hang Xanh Motors Service Joint Stock Company jumped by 54% in the third quarter. This led to a total administrative expense of VND29 billion, according to their audited financial statements.
Q.What was the total revenue for Hang Xanh Motors during the third quarter?
What was the total revenue for Hang Xanh Motors during the third quarter?
The total revenue for Hang Xanh Motors during the third quarter was VND2.9 trillion. This figure represents a 44% decline compared to the previous year and is its lowest revenue in the last seven years.
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