Sao Ta Foods tops revised growth targets amid Vietnam seafood industry struggle

Sao Ta Foods JSC, among major shimp exporters in Vietnam, has topped its revised revenue and pre-tax profit targets for 2023 by 4% and 1.5%, respectively, performing relatively well amidst a decline in the country's seafood industry.

Last October, the firm adjusted its revenue and pre-tax profit targets from VND5,900 billion ($239.8 million) and VND400 billion ($16.26 million) to VND4,870 billion and VND300 billion respectively.

The firm earned a pre-tax profit of VND304.6 billion ($12.38 million) in 2023, down 7.2% year-on-year.

According to its consolidated financial statement, Sao Ta Foods, listed on the Ho Chi Minh Stock Exchange (HoSE) as FMC, posted net revenues of VND5,087 billion ($206.75 million), down 10.7% year-on-year.

Of this figure, seafood and agricultural products accounted for VND4,928 billion (96%) and VND159 billion, down 10.2% and 25.4%, respectively.

Its financial revenue of VND72.9 billion ($2.96 million) rose slightly from the VND71.1 billion recorded in 2022. Financial costs decreased 14.4% to VND79 billion ($3.21 million) while interest expenses surged 63.9% to VND28.2 billion ($1.15 million).

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the firm is currently the largest Vietnamese shrimp exporter to Japan, the fifth to the U.S. and the ninth to South Korea.

Sao Ta Foods chairman Ho Quoc Luc said that the company will continue to focus on the Japanese market and maintain existing markets this year while making inroads into the Chinese market. It will improve product diversification and focus on producing more processed, value-added products, he added.

Sao Ta has three shrimp processing factories and two shrimp farming areas with output of more than 16,000 tons per year.

For 2024, the company has targeted net revenues and an after-tax profit of VND6,259 billion ($254.38 million) and VND340 billion ($13.82 million), up 28% and 22% year-on-year.

On the stock exchange, FMC closed Thursday flat at VND42,800 ($1.74) per share.