Sales costs ate substantially into profits in the final quarter of last year but the 2015 result was respectable.
TMT Motor’s business results for the fourth quarter of 2015 were surprisingly poor, with profit after tax coming in at VND6.8 billion ($303,348). With the result in the fourth quarter of 2014 being VND29 billion ($1.29 million), after nine months of solid business its profits then fell away badly in the final quarter of last year.
Though revenue in the fourth quarter was roughly in line with the same period of 2014, at VND532 billion ($23.73 million), and gross profit was VND74.6 billion ($3.33 million), an increase of $477,434 against 2014, costs cut into TMT’s profits significantly. Sales costs totaled VND24.8 billion ($1.11 million) against just VND4.7 billion ($209,667) in the fourth quarter of 2014.
TMT Motor nonetheless recorded good performance in 2015 despite the poor fourth quarter result. Total profit for the year was VND186.6 billion ($8.33 million), or three times higher than in 2014. The value of TMT shares increased strongly last year and now trade at around VND45,200 ($1.9).
Its Board of Directors has approved a plan to reward the Executive Board with 1.5 million additional shares if the share price reaches the VND50,000 ($2.25).
TMT’s total assets as at the end of 2015 stood at VND1.996 trillion ($89.06 million), an increase of VND770 billion ($34.36 million) against the beginning of the year. Its inventory totaled VND1.531 trillion ($68.31 million), equal to 76.7 per cent of total assets, for an increase of VND813 billion ($36.28) against at the beginning of the year. Most of the inventory is finished goods and goods for delivery.