LVMC Holdings successfully achieved a turnaround for the first time in six years since 2018 by returning to profitability in both operating profit and net income last year.
According to the audit report disclosed on the 20th, LVMC Holdings recorded consolidated cumulative sales of 295.7 billion KRW last year, a 14% increase compared to the previous year. Operating profit grew by 205% year-on-year to 16.4 billion KRW, and net income turned positive to 4.2 billion KRW. In the fourth quarter of last year, sales increased by 71% compared to the previous quarter, and operating profit saw a significant growth rate of 1090%.
The factors contributing to the company's improved performance include ▲strong vehicle sales in key business countries Laos and Vietnam ▲normalization of profits following the cessation of currency promotions.
The new business in Laos is also progressing smoothly. LVMC Holdings’ distribution company, UDEE. CO., Ltd, opened its first store in the Xaythany area in December last year and gained popularity by opening a second store in the Muang Noi area just two months later. Additionally, Lao Smart Mobility’s eco-friendly ride-hailing platform, Kokkok Move, has continued steady growth since its launch, surpassing 360,000 cumulative users and 1.4 million completed rides to date.
A company representative stated, “LVMC Holdings has gone through a long tunnel due to the economic downturn in major Southeast Asian business countries caused by the aftereffects of COVID-19 and the weakening of the Lao kip due to the strong US dollar, but achieved a strong turnaround starting last year. Laos continues to sustain sales and profit growth thanks to vehicle mix improvements and economic recovery, while Vietnam plans to accelerate sales growth with the introduction of new models.” The representative added, “With the ride-hailing and distribution new businesses laying a solid foundation, even stronger growth is expected by 2025.”
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