'Shrimp king' Minh Phu reports first loss in 7 years

Minh Phu Seafood Corporation, Vietnam’s leading shrimp exporter, reported an after-tax loss of VND95 billion ($4.05 million) in the first quarter of this year, the first loss since the beginning of 2017.

The company (MPC) recorded net revenue of VND2.12 trillion ($90.5 million) in the period, halved compared to the same period last year and the lowest revenue since the beginning of 2020.

In the same period last year, it recorded an after-tax profit of VND100 billion ($4.26 million).

As of March 31, 2023, Minh Phu's assets had reached VND9.5 trillion ($405.2 million), down 10% compared to the beginning of the year. Of which, short-term assets were VND6.4 trillion ($273 million), accounting for 67%. Inventories hit VND4.74 trillion ($202.2 million).

Liabilities decreased by VND1 trillion compared to the beginning of the year to VND3.83 trillion ($163.33 million).

Minh Phu targets a consolidated revenue of more than VND17.99 trillion ($767 million) and after-tax profit of nearly VND1.15 trillion ($49 million) in 2023, up 9% and up 38% year-on-year, respectively.

In 2023, the company aims to produce 60,000 tons of seafood, according to its 2022 annual report. It said it strives for the cost of Vietnamese raw shrimp to equal that of India by 2030 and that of Ecuador by 2035.

To achieve the goal, the corporation has a plan to improve the genetics of black tiger and whiteleg shrimp to create seed shrimp with good resistance and good adaptation to disease, weather, and the climate of Vietnam.

"Producing high quality shrimp seed that is resistant to disease and adapted to Vietnam's climate and environment will bring the success rate of Vietnam's shrimp farming industry to over 60% by 2030, and over 80% by 2035," the report noted.

The corporation will also develop extensive and semi-intensive farming models for black tiger shrimp and a high-tech, super-intensive farming model for whiteleg shrimp, which are suitable for each region, with a low price equal to India from 2030 and Ecuador from 2035.

Minh Phu has been Vietnam’s largest shrimp producer and exporter for several years. Based in the Mekong Delta’s Ca Mau province, the company has in recent years focused investments on upgrading shrimp farming technology. Its main export markets are the U.S., EU, Australia, New Zealand, Japan and Canada.

On the unlisted public company market UPCoM, the MPC price hit VND18,100 ($0.77) per share on Friday.