VinFast Auto Ltd. (NASDAQ: VFS) Q1 2025 Earnings Call | 06/10/2025

about 2 months ago

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AI Summary

Key Highlights:

Strong Delivery Growth: VinFast experienced substantial growth in deliveries, with a 296% year-over-year increase in electric vehicles (36,330 units) and a 473% increase in two-wheelers (44,904 units) in Q1 2025. They expect to at least double vehicle deliveries in 2025.
Market Expansion: The company is actively expanding its presence in Southeast Asia (Indonesia and the Philippines), with plans to launch in India and continue its presence in Europe and North America through a dealer-led model.
Vietnam Leadership: VinFast maintains a dominant position in Vietnam, with nearly 40% market share in auto sales during Q1 2025.
New Models & Technology: VinFast is introducing new models, including the Green series for transportation and commercial vehicles like electric school buses and minivans. They are also developing next-generation vehicle platforms and EE architecture focused on competitiveness, commonality, and cost efficiencies. The first model with this new architecture, the Limo Green MPV, is slated for release in Q3 this year.
Financial Performance: Q1 2025 saw revenue of $657 million, a 150% year-over-year increase. While a gross margin was negative 35%, this represents a significant improvement from the previous year. The company is focused on cost optimization to achieve profitability.
Cost Optimization: VinFast is actively working on cost optimization through vertical integration, supplier optimization, and a new vehicle architecture designed for efficiency. They are shifting to a more collaborative engineering model with suppliers.
Liquidity: As of May 31st, 2025, VinFast's liquidity stands at approximately $2.4 billion, including loans and grants from Vingroup and the founder.

About this video

VinFast Auto Ltd. (NASDAQ: VFS) reported Q1 2025 results on June 10, 2025, with total revenue surging 149.9% year-over-year to $656.5 million, well ahead of analyst expectations. The company delivered 36,330 electric vehicles in the quarter—a 296% increase from Q1 2024 and more than it delivered in the entire first half of last year. E-scooter deliveries also jumped 473% to 44,904 units, reflecting strong momentum in both segments. Despite the traditionally slow first quarter for auto sales, VinFast’s rapid growth was driven by robust demand in Vietnam and expanding contributions from new overseas markets. Gross profit margin improved significantly to -35.2%, up from -58.7% a year ago and -79.1% in Q4 2024, reflecting better operational efficiency and cost optimization. However, the company posted a net loss of $712.4 million, 20% higher than Q1 2024 but a substantial improvement from the $1.3 billion loss in Q4 2024. Chairwoman Thuy Le noted that the affordable VF 3 and VF 5 models accounted for 68% of domestic deliveries, and the company is ramping up its presence in Asian and European markets. VinFast is also expanding into electric buses and will launch its next-generation platform, Limo Green, in Q3 2025. The company remains focused on doubling global vehicle deliveries in 2025, navigating macroeconomic headwinds, and optimizing its business model—including a shift toward dealership sales and new assembly operations in India. Outlook: FY2025: Goal to at least double global vehicle deliveries Continued expansion in Asia, Europe, the Middle East, and North America Focus on margin improvement, cost control, and new product launches About Inside Ticker: For more expert analysis and real-time updates on VinFast Auto Ltd. (NASDAQ: VFS) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #VinFast #VFS #EarningsCall #Q12025 #EVs #RevenueGrowth #VehicleDeliveries #Margins #ElectricVehicles #AsiaMarkets #Investing #InsideTicker

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