LVMC Holdings Posts 38.1 Billion Won Operating Profit in H1, Up 105% Year-on-Year

LVMC Holdings, which operates its automotive business in the Indochina region, achieved a record-high operating profit for the first half of the year by focusing on profitability-driven management.

The company announced that its consolidated sales for the first half of this year reached 238.7 billion won, with an operating profit of 38.1 billion won. Sales grew by 17.5% compared to the same period last year, and operating profit surged by 105.4%. Net profit for the period also rose by 353.5%, continuing the trend of profit improvement.

Looking just at the second quarter, sales were 109.1 billion won, up 9.7% year-on-year. Operating profit amounted to 18.2 billion won, a 137.8% increase, while the operating margin reached 16.7%. Net profit for the quarter was 8.2 billion won, representing a 400.9% jump over the same period last year.

The company explained that the momentum for improved performance seen in the first quarter continued into the second, and its profitability-oriented business strategy is now producing tangible results.

By country, Laos, Myanmar, and Vietnam each demonstrated distinct growth trajectories, each contributing to overall performance improvement.

In its key market of Laos, automotive sales in the second quarter rose by 20.2% compared to the same period last year. Sales reached 49.47 million dollars, an increase of 12.3%. While the real demand base centered on Hyundai was maintained, the number of Daehan vehicles sold increased by 137%, driving an overall expansion in sales.

In Myanmar, vehicle sales more than doubled year-on-year. Second-quarter sales soared 142.3% to 9.56 million dollars. Sales of the new Accent grew by over 91% compared to the previous year, and the new Creta posted a 48% increase. The addition of the high-end model Custin, launched in the second half of last year, has also helped to strengthen the product lineup.

In Vietnam, the focus is on sales of high-margin models centered on its own commercial vehicle brand, TERACO. By launching new models, the lineup is expanding, high-value model sales are increasing, and the average selling price is rising. As a result, cumulative sales for the first half of the year rose by 3.0% year-on-year.

For the second half, the company will also seek to boost sales through a newly opened large-scale megamall in Laos.

On August 8, a new 80,000 square meter megamall opened in Vientiane, Laos’ capital. LVMC Holdings opened a car showroom called 'KOLAO TOPIA' on the mall’s fifth floor. The showroom features the major and latest models from Hyundai and Kia, allowing customers to directly experience and test-drive vehicles.

The company plans to convert showroom visitors into actual vehicle sales, aiming to create a new growth engine for its automotive business in Laos in the second half of the year.

A representative from LVMC Holdings stated, "The improvement in first quarter results has not been a one-off, as it has continued into the second quarter, confirming that our focus on profitability-driven management is taking hold. We plan to leverage the showroom visitors at the megamall to achieve tangible sales results and establish a new growth engine for the automotive business in Laos in the second half."

This content was produced with the assistance of AI translation services.