VinFast Auto Ltd. Q4 FY2024 earnings call

Key Points

• 2024 was a year of achievements with 97,399 EV deliveries globally, exceeding the target. Non-Vietnam sales grew 10x YoY.
• In Vietnam, VF3 and VF5 accounted for 60% of deliveries. Green mobility ecosystem played a role in overcoming adoption barriers.
• International expansion: CKD plants in Asia to begin operations in 2025. Showrooms in North America and Europe expanded.
• Financials: Revenue growth, adjusted gross margin improvement, SG&A and R&D spend, cash burn improved with $1.9 billion cash burn in 2024, down 39% YoY.
• Three-pillar growth strategy: product, capacity, market to drive 2025 target of doubling 2024.

In 2024, VinFast ended with a total delivery of 97,399 EVs globally, exceeding the 80,000 target. Q4 2024 saw 53,139 electric vehicle deliveries globally, a 43% QoQ and 342% YoY increase. Non-Vietnam sales grew 10 times YoY, contributing 10% of total deliveries compared to 3% in 2023. Full-year revenue was $1.8 billion, up 58% YoY. Q4 2024 revenue was $678 million, up 34% QoQ. Gross margin excluding NRV and one-off charges narrowed to -32% in 2024 from -40% in 2023. Deliveries of e-scooters in Q4 2024 were 31,170, a 65% QoQ and 41% YoY increase.

Forward-Looking

• 2025 target to double 2024 deliveries. Q1 Vietnam deliveries expected at ~35,000. Q2 to see uptick with new green models.
• Other markets: Indonesia, Philippines, India to contribute significantly. Three new CKD plants in Asia to add 300,000 vehicles per year capacity.
• Continue investing in R&D and CapEx in 2025, with cash burn expected around $2.5 billion, focusing on scaling volume and margin improvement.

Risks

• Regulatory and geopolitical landscape changes.
• Macroeconomic conditions impacting sales.
• Impact of US tariffs on automotive sales.
• Dependency on key markets for growth, with potential challenges in new market expansions.

Q: Key priorities for 2025 and alignment with go-to-market strategy?

A: Madame Thuy Le said priorities include solidifying Vietnam leadership, enhancing CapEx manufacturing, driving product innovation. Aligned with three-pillar strategy: product, capacity, market. Excited about new vehicle platforms and technologies to drive cost savings and growth over next 24 months.