[Edaily Reporter Park Jung-Soo ] LVMC Holdings(900140)posted its highest-ever operating profit in the first half of this year, driven by improved profitability.
LVMC Holdings announced on the 31st that it posted consolidated revenue of 238.7 billion won and operating profit of 38.1 billion won in the first half of this year. Compared to the same period last year, revenue increased by 17.5% and operating profit rose by 105.4%. Net income also surged by 353.5% year-over-year.
On a consolidated basis, second-quarter revenue totaled 109.1 billion won, up 9.7% year-over-year, while operating profit rose 137.8% to 18.2 billion won. The operating profit margin stood at 16.7%. Net income reached 8.2 billion won, a 400.9% increase from the same period last year.
The company explained that the Group’s overall profitability improved as sales expanded and the product mix improved in Laos, Vietnam, and Myanmar—key hubs in Indochina.
In Laos, second-quarter sales volume rose 20.2% year-over-year, and revenue increased 12.3% to $49.47 million. While sales continued to be driven primarily by HyundaiMotor vehicles, sales of the company’s own brand, Daehan, surged 137% during the same period.
Sales volume at the Myanmar subsidiary more than doubled year-over-year in the second quarter, and revenue rose 142.3% to $9.56 million. Sales of the new Accent grew by more than 91% year-over-year, driving this growth, while sales of the new Creta also increased by 48%. The company explained that sales of the high-end model “Kerstin,” launched in the second half of last year, also contributed to the improvement in the product mix.
In Vietnam, the company expanded the share of high-margin vehicle models, centered on Daehan Motors’ proprietary commercial vehicle brand, TERACO. Cumulative revenue for the first half of the year increased by 3.0% year-over-year, driven by a rise in the average selling price (ASP) resulting from new model launches and increased sales of higher-priced models.
An official from LVMC Holdings stated, “We have confirmed that the improved first-quarter performance has continued into the second quarter, demonstrating that our profit-focused management strategy is taking root,” adding, “We plan to convert visitors to the Mega Mall auto showroom, which recently opened in Laos, into actual sales, making this a new growth engine for our Laos automotive business in the second half of the year.”