Selling airline meals earns more than one billion dong per day
The company that exclusively provides airline meals at Noi Bai airport recorded its highest revenue and profit ever in 2017.
Benefiting from the rapidly growing aviation market, the 2017 financial report of Noi Bai Catering Joint Stock Company (Noibai Catering, stock code: NSC) has just recorded record high revenue and profit.
Sales and service revenue increased by more than 15% compared to the previous year, reaching VND630 billion, far exceeding the plan set at the beginning of the year. Catering services contributed more than 77.5% to total revenue, equivalent to VND490 billion. On average, the company earned about VND1.3 billion per day from the exclusive provision of catering services to many major airlines at Noi Bai airport.
Vietnam Airlines Corporation, which is also the largest shareholder holding more than 60% of shares here, is the company's largest customer with a purchase transaction value of up to 346 billion VND, accounting for more than half of revenue.
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Vietnam Airlines is the largest customer of Noi Bai Air Catering. |
Due to the company's increased testing, marketing and concession activities, sales expenses increased by more than 18% compared to the previous year. This, combined with a sharp decrease in financial revenue and double-digit growth in business management expenses, resulted in pre-tax profit of only VND105 billion.
The financial report also shows that total capital reached 456 billion VND, nearly double that at the beginning of the year. The reason for the sudden change is that the company officially increased its equity capital to maintain the optimal ratio of equity to debt capital to ensure the efficiency of capital arrangement for the project to build an airline catering processing facility worth 478 billion VND.
Noi Bai Air Catering Joint Stock Company, formerly Noi Bai Catering Processing and Production Enterprise, was equitized under the direction of the Ministry of Transport in 2004. The company plans to serve nearly 7.6 million meals for more than 50,800 flights in 2017. According to previously published data, the average price of each meal sold to airlines is 63,000 VND, with an estimated profit of about 8,300 VND.
