Three highlights in Group CEO financial statements for the first quarter of 2018

Implementing a new strategy with 5 business pillars, CEO Group has just finished the first quarter of 2018 with many notable highlights in business results, cash flow and financial structure.

C.E.O Group (CEO Group) has just released its consolidated financial statement for Q1 / 2018. The first notable feature in the report is that Group CEOs’ quarterly pre-tax profit grew nearly one-and-a-half times over the same period last year.

The first point is about business results. In the first quarter of 2018, CEO Group achieved sales of VND417 billion, an increase of 21% compared to the same period of 2017. Revenue structure was more balanced. In particular, sales of real estate decreased nearly 5% to VND230 billion; Service revenue increased 75% to VND155.5 billion.

The COGS margin slightly decreased from 56.1% in the first quarter of 2017 to 55.7% in the first quarter of 2018, bringing the gross profit margin of CEO Group to nearly 22% to VND184.7 billion.

In terms of cost, in Q1 / 2018, CEO Group recorded 30.4 billion dong of interest expenses, down more than 10% over the same period last year. Meanwhile, selling expenses were VND11.6 billion, down more than 35%; Management expense was VND59.2 billion, up more than 45% y / y.

Three highlights in Group CEO financial statements for the first quarter of 2018

Overall, Group CEO recorded a pre tax profit of VND96.7 billion in the first quarter of 2018, up over 40 percent over the same period of 2017.

The second most noticeable point was the positive movement of cash flow. Last quarter, net cash flow from business activities of CEO Group reached 392 billion, a sharp increase compared with 187 million in the same period last year.

Gaining good cash flow from business activities helped the Group CEO significantly reduce its reliance on cash flow from borrowings (net financial income from financial activities of Group CEO for the first quarter of 2018 was only VND20.7 billion, lower VND87 billion in Q1 / 2017). At the end of March 31, 1818, cash and cash equivalents of CEO Group were about VND824 billion, up 86% from the beginning of the year. This money can help CEO Group continue to develop existing projects and new projects.

~~>>Update on new information on the real estate news in Vietnam here: Vietnam real estate news

The third highlight is the financial structure. As of March 31, 1818, total assets of CEO Group reached VND 6,409 billion, CEO’s equity at VND 2,288 billion, a slight increase of 2.2% compared to the beginning of the year. The total debt was VND4,121 billion, up nearly 21% or VND707 billion. Much of this increase was due to the increase in short-term prepayments from VND 978 billion to VND 1,564 billion. This item mainly records prepaid customers for CEO Group. This shows the sales progress of CEO Group being quite good.

The ratio of total liabilities is 1.8 times of equity, which is not too high for real estate businesses.

In terms of debt, total debt (both short-term and long-term loans) of CEO Group ended March 31, 2018 at VND1,462 billion, less than two thirds of equity. This is a low rate when compared to most real estate companies that use a lot of loans to develop projects.

You are reading the article Three highlights in Group CEO financial statements for the first quarter of 2018 in the Real Estate category at https://realestatevietnam.com.vn/.Any information sharing, feedback please email to contact.vietnamrealestate@gmail.com, Hotline (+84) 898 898 688 (24/7).

Special thanks!