LVMC Holdings has continued its solid growth trajectory in the first quarter of this year, following a turnaround in performance last year.
On May 28, LVMC Holdings announced that its consolidated sales for the first quarter of this year reached $71.52 million (103.9 billion KRW), and operating profit was $7.52 million (10.9 billion KRW), representing year-on-year increases of 31% and 225%, respectively. With both sales growth and profit improvement occurring simultaneously, LVMC’s fundamentals have been further strengthened. Net profit for the quarter was $2.91 million (4.2 billion KRW), marking a second consecutive quarter in the black.
According to a company representative, strong sales in key markets such as Laos and Vietnam, as well as a high-margin strategy in the Myanmar subsidiary, drove profit-focused performance improvement. The Laos subsidiary saw a sharp market recovery, with first-quarter vehicle sales reaching 2,716 units, a 17% increase year-on-year. The gradual recovery of local currency exchange rates against the US dollar also helped alleviate foreign exchange losses, contributing positively to results.
The Vietnam subsidiary sold 1,421 vehicles during the same period, a 71% increase compared to the previous year. The high popularity of the newly launched TERRACO minivan and mini truck last year led to expanded production capacity through improvements in the painting line, and new models are scheduled to be introduced this year as well.
The Myanmar subsidiary has achieved a profit for two consecutive years, despite ongoing political and economic challenges such as continued foreign exchange regulations and import controls following the coup. First-quarter vehicle sales reached 119 units, a 1,388% increase year-on-year. Conservative inventory management and a supply strategy focused on high-margin models resulted in an operating profit of 1.3 billion KRW, an operating margin of 36%, and a net profit margin of 38%.
Meanwhile, the overhang risk (potential selling pressure) and investor uncertainty have been resolved as 'Gen To Gen', a corporation funded by LVMC Holdings' largest shareholder, recently decided to acquire the entirety of the newly converted convertible bonds. This move not only demonstrates a clear commitment to responsible management but is also expected to bring positive changes across the company’s financial structure, including reduced interest expenses due to lower debt and an improved equity ratio, thereby raising expectations for enhanced corporate value.
In addition, during the second half of the year, the company plans to consolidate the results of its new distribution business and mobility platform business in Laos. The new distribution business, 'No Brand', is preparing to open its third store based on the stable operation of its first and second stores, and plans to steadily expand to 20 locations. The ride-hailing-based mobility platform 'Kokkok Move' is also considered to have achieved an early market foothold, with 200,000 rides completed in the first quarter.
A company representative added, "Following performance improvement in our core business and securing financial stability, we plan to make the results of our new business segments visible in the second half, thereby securing mid- to long-term growth momentum."
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