LVMH Holdings "24% Sales Increase Last Year... Operating Profit Turns Positive"
[Asia Economy Reporter Hyunseok Yoo] LVMC Holdings announced on the 17th that its consolidated sales last year reached $312 million (approximately 363.7 billion KRW), and operating profit was $2.74 million (approximately 3.2 billion KRW), marking a 24% increase in sales compared to the previous year and a return to profitability.
The improvement in LVMC Holdings' performance was driven by Myanmar and Cambodia. Compared to 2018, Myanmar achieved a 267% increase in sales, and Cambodia saw a 4573% increase. The company analyzed that these countries have entered a virtuous cycle structure where profits from increased sales exceed the coverage of fixed costs. Additionally, with the expansion of sales to Myanmar and Cambodia, the proportion of Laos decreased to 69%. As a result, the business portfolio by country in the Indochina Peninsula has been completed, providing stability in terms of sales expansion and profit realization.
LVMC Holdings places great expectations on sales expansion and profit improvement in the Myanmar market this year. Myanmar is a market where new car sales are explosively growing more than twice every year. Since February last year, the company has completed a factory near Yangon to produce and sell SKD ("Semi-complete Knock Down": vehicles with the body assembled, while the remaining parts are packaged in component units for shipment, transport, and local factory assembly) vehicles. SKD models are so popular that even with pre-orders, it takes more than three months to receive the vehicle.
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Along with this, the group plans to actively promote new businesses such as total logistics solutions, automobile auctions, and O2O platform businesses to secure new growth engines. A representative of LVMC Holdings stated, “Since changing the company name to LVMC Holdings, we have been striving to establish optimized pricing and product competitiveness for expansion into the Laos, Vietnam, Myanmar, and Cambodia markets,” and emphasized, “Following the start of full-scale sales across the Indochina Peninsula since last year, we expect this year to lead to substantial growth and profit realization.”
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