Taxi firm Vinasun’s profits down by half
In this article (5)
Taxi firm Vinasun’s profits plummeted by 58.5% to VND22 billion ($868,000) in the first quarter, a near two-year low, according to a company disclosure.
The Ho Chi Minh City-based company said profits dropped because it had to spend money on “supporting drivers and partners.”
Revenues were down 15% to VND278.6 billion.
The company aims to hire experienced drivers by paying better this year, and buy 700 new cars, mostly Toyota hybrids.
It plans to study the possibility of using three-wheel electric vehicles.
It targets revenue of VND1.1 trillion this year, down 9% from last year, and profits of VND80.5 billion, down by half.
Despite slashing its payroll in recent years the company expects to face challenges to its recovery this year.
Questions & Answers
Q.What caused Vinasun's profits to drop significantly in the first quarter?
What caused Vinasun's profits to drop significantly in the first quarter?
The company stated that its profits dropped because it had to spend money on "supporting drivers and partners." This expenditure led to a 58.5% decline in profits for the quarter.
Q.What is Vinasun's revenue and profit target for the current year?
What is Vinasun's revenue and profit target for the current year?
Vinasun is targeting revenues of VND1.1 trillion for the year, which is a 9% decrease from last year. Its profit target is VND80.5 billion, representing a decrease by half compared to the previous year.
Q.What new investments and strategies is Vinasun planning to implement this year?
What new investments and strategies is Vinasun planning to implement this year?
Vinasun plans to hire experienced drivers by offering better pay and will purchase 700 new cars, primarily Toyota hybrids. The company also intends to explore the potential use of three-wheel electric vehicles.
Q.Does Vinasun anticipate an easy recovery despite its planned initiatives?
Does Vinasun anticipate an easy recovery despite its planned initiatives?
No, despite recently reducing its workforce, the company still expects to encounter difficulties in its recovery efforts this year. It acknowledges ongoing challenges for the business.
Reader pulse
Vinasun's turnaround plan:
21,169 votes so far