Q2 2024 VinFast Auto Ltd Earnings Call Transcript
Key Points
- VinFast Auto Ltd (VFS) delivered 13,172 EVs in Q2 2024, marking a 44% increase quarter over quarter and a 43% increase year over year.
- The VF 5 model has been a significant volume driver, with a ninefold increase in sales since its launch in Q2 2023.
- VinFast Auto Ltd (VFS) has established a strong market presence in Vietnam, with a 108% year-over-year growth in B2C deliveries in the first half of 2024.
- The company has successfully expanded its global distribution network, with 155 showrooms across all markets as of August 31, 2024.
- VinFast Auto Ltd (VFS) has made significant progress in cost optimization, with a 16% decline in average build-up material costs and a 43% decline in average production costs for owned models in Q2 2024.
- VinFast Auto Ltd (VFS) reported a gross loss of USD224 million for Q2 2024, with a gross margin of minus 62.7%, worsening from Q1 2024 and Q2 2023.
- The company faced a higher net realizable value (NRV) write-down of USD104 million in Q2 2024, significantly impacting gross margins.
- Operating expenses rose 28% quarter over quarter and 24% year over year due to international market expansion.
- The decision to delay the North Carolina plant has led to a reallocation of capital, potentially affecting long-term strategic plans.
- VinFast Auto Ltd (VFS) has only delivered 25% of its 80,000 vehicle target for 2024 in the first half of the year, raising concerns about meeting the full-year goal.
Good day and thank you for standing by. Welcome to the VinFast Auto Limited second quarter 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Nhi Nguyen. Please go ahead.
Thank you, operator, and good morning, everyone. This is Nhi Nguyen from VinFast Investor Relations. Welcome to our second quarter earnings conference call. Joining me on the call today are Chairwoman of the Board, Madam Thuy Le; and our CFO, Ms. Lan Anh Nguyen.
During the call, we will discuss our second-quarter performance, business update, and present our outlook for the remainder of 2024. After management remarks, We will have 30 minutes for Q&A. We will also reference a slide deck today which is accessible on the IR website.
Before I turn the call over to Madam Thi, let me remind you that some of the statements on this call include forward-looking statements under federal securities law. These include,
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