City Auto (CTF) plans to increase revenue by 14%, pay lower dividends than last year

City Auto (CTF), a major Ford car distributor in Vietnam, has just announced documents for the 2024 General Meeting of Shareholders. The company targets revenue of VND8,100 billion, up 14.1% over the same period. The target profit after tax is expected to reach VND80 billion, up 81.6% compared to 2023. The expected dividend payout ratio is 7%. Thus, this year's dividend payment plan has fallen behind last year's 12%.

City Auto (CTF) targets 14% revenue increase, dividend payment of only 7% for 2023 (Photo TL)

In 2023, City AUto recorded strong revenue growth, reaching 7,101 billion VND. However, gross profit decreased due to increased costs, only 410 billion VND, equivalent to gross profit margin decreasing from 8.8% to 5.8%.

After deducting sales expenses, business management expenses and taxes, City Auto's after-tax profit was 44 billion VND, down 62.7% over the same period.

Regarding business orientation in 2024, City Auto plans to focus on implementing digital marketing, promoting online sales development and completing the company website.

In the second quarter of 2024, City Auto plans to put into operation two more showrooms selling new Ford cars in Di An - Binh Duong and in Tien Giang.

Regarding the 2023 profit distribution plan, City Auto presented to shareholders a plan to pay stock dividends at a rate of 7%. Accordingly, each shareholder owning 100 shares will receive 7 additional newly issued shares.

With the number of shares currently outstanding on the market, City Auto is expected to issue an additional 6.26 million shares to pay dividends to shareholders. The dividend payment plan will be implemented after being approved by the State Securities Commission.

Source: https://www.congluan.vn/city-auto-ctf-ke-hoach-doanh-thu-tang-14-tra-co-tuc-thap-hon-nam-truoc-post299002.html