Agriculture major PAN Group to pay 5% cash dividend

Leaders of PAN Group JSC, listed on the HCMC Stock Exchange (HoSE) as PAN, proposed paying a cash dividend of 5% this year and beyond at the company's AGM on Friday.

At the company's AGM last year, chairman Nguyen Duy Hung had stated that the company was unable to pay a cash dividend for 2023 because it needed resources to balance capital and invest.

Profit target for 2024 increases by 10%

Nguyen Thi Tra My, CEO of PAN Group, said that its consolidated revenue reached VND13,200 billion ($520.9 million) in 2023, a decline of 3% from the previous year, accomplishing 90% of the target. The revenue dip was driven by mostly a decline in the seafood sector of 11% and a drop in packaged goods of 8% as a result of overall local and international market trends.

This drop was offset by an increase in revenue in the agricultural sector, with the agricultural chemicals and packaged rice businesses driving the expansion in the face of rising rice prices, My added.

Its consolidated after-tax profit reached VND817 billion ($32.2 million) in 2023, meeting 97% of the year's plan.

PAN's board of directors stated that there are still numerous hurdles to face in 2024, so the plan has been set at a cautious level. Consolidated sales and profit are expected to grow 12% and 10%, respectively.

This plan is offered in the backdrop of 2024 being expected to be tough, with the global economy exhibiting few obvious indications of recovery and unknown variables in monetary and inflation control. Global geopolitical turmoil is also a factor to consider.

Focus on three main areas

Chairman Hung said that the company will concentrate on agriculture, fisheries, and packaged food. The group will not abandon any of these segments because they all have essential purposes. Its leaders want agriculture to be the group's driving force, reaching out to the rest of the world.

Risks of U.S. anti-dumping tax on shrimp

Ho Quoc Luc, chairman of Sao Ta, a member company of PAN, said that the U.S. is Vietnam's largest shrimp export market. PAN exports mostly to Japan with 45% and the U.S. with 30% of its total export revenue.

The economic slowdown in the U.S. has had an effect on demand, and Vietnam's shrimp sector is struggling owing to anti-dumping and anti-subsidy cases. Currently, the anti-dumping tax is 0%, while the anti-subsidy rate is 2.84%. The ultimate tax rate may be published in August or September, Luc added.

Export prospects in the confectionary segment

Nguyen Quoc Hoang, general director of Bibica JSC, a PAN subsidiary, stated that exports of confectionery present numerous opportunities. Bibica sells heavily to Japan and South Korea.

Normally, investors overlook the unappealing confectionary industry in favor of investing extensively in segments such as semiconductor chips and technology. However, the entire world continues to devour candy. As a result, other countries outsource production to other markets, particularly Southeast Asia, which includes Vietnam.

Bibica has overcome technical constraints and is large enough to offer competitive pricing. There is still great growth potential, Hoang said.