Non-aviation service businesses enjoy profits in H1

The non-aviation service industry has been on the fast track to recovery in the past few months, following the flourishing of the aviation market, despite the impact of volatile and escalating fuel prices as well as the international market's failure to recover as expected.

Services such as airline meals, duty-free sales, restaurants, and business lounges thus also benefited.

Southern Airports Services Joint Stock Company (SASCO) announced its Q2 net revenue reached nearly VND296 billion (US$12.65 million), up 216% over the same period last year. Profit after tax of enterprises in the period reached nearly VND84 billion, up 680% compared to a loss of nearly VND14.5 billion in the same period last year. This is the highest quarterly profit since 2019.

In the first six months of this year, SASCO recorded a net revenue that doubled last year, reaching VND427 billion. With a cost of goods sold of VND211 billion, the gross profit of this business reached nearly VND216 billion, up 212% over the same period last year.

After deducting expenses, SASCO’s post-tax profit was 85.6 billion VND, while in the same period last year, this business recorded a loss of VND1.8 billion.

SASCO said that the company's business was gradually recovering when the number of domestic flights increased, international commercial flights gradually resumed, while in the same period last year the company was strongly affected by social distancing.

Sai Gon Ground Services JSC (SAGS) achieved Q2 net revenue of VND237.6 billion and gross profit of nearly VND80 billion, up more than 163% and 210% respectively over the same period in 2020.

Accumulated in the first 6 months, SAGS recorded VND406 billion in net revenue, up 126%, nearly VND79 billion in profit after tax, up 143% year-on-year.

For this year, SAGS set a consolidated revenue target of VND795 billion, net profit is estimated at VND108 billion. Thus, this enterprise has completed 51% of the revenue plan and 73% of the profit plan.

In the first half of this year, Noi Bai Cargo Terminal Service Joint Stock Company (NCTS) also recorded a slight growth of 9% in revenue, reaching nearly VND372 billion, profit after tax reached VND142 billion, up 7% over the same period in 2021.
Besides businesses with positive growth, many businesses in the airline service industry, although not recording profits, also saw a remarkable reduction in losses in the first half of this year.

Taseco Air Services JSC (AST), which owns a chain of more than 100 retail stores at Vietnam’s airports, mainly at Noi Bai and Da Nang airports, also started to report profit after two years of recording losses.

In the second quarter, this enterprise recorded nearly VND134.6 billion in revenue, up 266% year-on-year, nearly VND16.6 billion of profit after tax.

Accumulated in the first six months of the year, this business has a revenue of over 202 billion VND, up 1.8 times over the same period in 2021, reducing its loss to VND7 billion while in the same period last year, Taseco's loss was VND67 billion.

Noi Bai Catering Service JSC (NCS), a subsidiary of Vietnam Airlines, in the first six months of this year, reported revenue doubling, reaching VND144.4 billion. Its losses fell by 73%, equivalent to nearly VND32 billion, to negative VND11.77 billion compared to the loss of negative VND43.68 billion in the first half of 2021.

Da Nang Airport Service Joint Stock Company (MASCO) also reported its loss declining from negative VND7.4 billion in the first half of 2021 to negative VND1.35 billion in the first half of this year. Meanwhile, revenue grew 130% over the same period last year.