Tan Son Nhat Airport’s largest retail chain operator earns nearly 15% profit margin in 2024
Tan Son Nhat Airport’s largest retail chain operator earns nearly 15% profit margin in 2024
Southern Airports Services Joint Stock Company (SASCO), which operates the largest retail chain at Tan Son Nhat International Airport in Ho Chi Minh City, earned a profit margin of nearly 15 percent last year.
Phoenix is one of the stores operated by Southern Airports Services Joint Stock Company (SASCO) at Tan Son Nhat International Airport in Ho Chi Minh City. Photo: Cong Trung / Tuoi Tre |
For 2024, SASCO’s net revenue totaled over VND2.9 trillion (US$113.57 million), a 12-percent increase, while its net profit reached nearly VND430 billion ($16.84 million), up 50.5 percent.
On average, for every VND100 in revenue, SASCO earned about VND14.8 in profit after deducting all expenses, including the cost of goods sold, operating costs, taxes, and interest.
According to its self-disclosure, SASCO operates a chain of duty-free stores, business lounges, restaurants and cafés, and the largest retail store system, SASCO Shop, at Tan Son Nhat International Airport.
Regarding its shareholder structure, the Airports Corporation of Vietnam holds 49.07 percent of SASCO’s capital, while enterprises connected to Nguyen Hanh, also known as Johnathan Hanh Nguyen, the company’s chairman, own more than 45 percent.
The company pays value-added tax (VAT) according to the deduction method.
Specifically, the duty-free business is exempt from VAT, while international passenger transport services and on-site exports are taxed at zero percent.
Other goods and services are subject to VAT rates ranging from five percent to 10 percent.
In Q4 of 2024, SASCO’s net profit exceeded VND135.7 billion ($5.3 million), marking a 205-percent increase compared to the same period in 2023.
This growth was driven by the recovery of the aviation industry, along with effective sales programs and cost management.
By segment, revenue from goods at duty-free stores reached nearly VND276 billion ($10.8 million), a four-percent increase over the same period in 2023.
Revenue from lounge operations grew more than 25 percent, reaching nearly VND216 billion ($8.46 million).
Meanwhile, revenue from shopping malls and other branches contributed only VND80 billion ($3.13 million).
The cost of goods at duty-free stores significantly decreased, accounting for just 33 percent of the revenue, compared to 71 percent in 2023.
However, the lounge business achieved better profit margins, with the cost of goods sold making up only 19.5 percent of the revenue, down from nearly 22 percent in 2023.
- 08:15 26/02/2025
