Tan Son Nhat Airport Services Corporation (SASCO), chaired by Johnathan Hanh Nguyen, recently released its Q3/2024 financial report, showing revenue and gross profit of over VND 782 billion and VND 498 billion, respectively.

These figures mark a record for the prominent airport services firm within a single quarter. With this level of profit, the gross profit margin stands at nearly 64%.

This implies that for every VND 20 earned after deducting the cost of goods sold, SASCO’s gross profit is nearly VND 13 - a remarkably high ratio.

After accounting for financial expenses, sales, and administrative costs, SASCO posted a pre-tax profit of approximately VND 216 billion and an after-tax profit of nearly VND 181 billion for Q3 2024.

For the first nine months, SASCO recorded total revenue exceeding VND 2.117 trillion and after-tax profit over VND 294 billion, reflecting a 12% and 22% increase compared to the same period last year. These impressive numbers stand out given SASCO's capital size of over VND 1.33 trillion.

The Imex Pan Pacific Group (IPP Group), owned by Johnathan Hanh Nguyen’s family, began making significant inroads into the aviation and airport services sector in 2015 through a partnership between IPP Group and SASCO.

SASCO, led by Johnathan Hanh Nguyen as Chairman and his wife, former actress Le Hong Thuy Tien, as a board member, specializes in retail, duty-free sales, and service operations at Tan Son Nhat International Airport.

Johnathan Hanh Nguyen officially took on the role of SASCO’s Chairman in 2017.

IPP Group also holds more than a 10% stake in Noi Bai Airport Services Joint Stock Company (NASCO) and collaborates with the Airports Corporation of Vietnam (ACV) at Cam Ranh International Airport.

Explaining the 40% increase in after-tax profit for Q3 compared to the same period last year, SASCO attributed the growth to a return to normal business operations post-COVID. The company has effectively managed costs, and financial gains have also contributed to the improved results.

However, a closer look at the report indicates that SASCO's substantial profit is mainly driven by increased revenue and low cost of goods sold, resulting in high gross profit margins. For every VND 20 earned, the gross profit is nearly VND 13 - a rare margin in the market.

SASCO’s success can be attributed to its focus on premium services targeted at affluent customers across Vietnam’s main airports.

Despite economic challenges and weakened consumer demand, spending by affluent customers tends to be less affected by recessions.

For example, the Prime Lounge at Tan Son Nhat Airport is considered a haven for business professionals and high-end travelers, offering a private bartender, gourmet food, and displays of fine art, Bat Trang ceramics, and Ha Dong silk. The profitability of such services is notably high.

According to the report, SASCO’s core businesses include duty-free shops, retail systems, VIP lounges, in-flight catering, handling services, dining, tourism services, transportation, and advertising.

Additionally, SASCO operates renowned resorts such as L’Azure Resort & Spa in Phu Quoc (Kien Giang), produces traditional fish sauce, and engages in import-export businesses.

IPP Group is one of the leading international luxury retail conglomerates in Vietnam, leaving a significant mark under the leadership of Le Hong Thuy Tien. The group distributes numerous high-end brands like Burberry, Ferragamo, Versace, Rolex, and various fast-food chains such as Burger King and Dunkin’ Donuts.

Manh Ha