Top Vietnamese sugar maker TTC AgriS sees net profit soar 39% in FY 2023-2024

Thanh Thanh Cong-Bien Hoa JSC (TTC AgriS), Vietnam’s largest sugar producer with a 46% market share, reported a net profit of VND747 billion ($30.4 million) for the fiscal year 2023-2024, up 39% year-on-year, but its gross profit margin hit a five-year low.

According to its earnings report, the firm, listed on the Ho Chi Minh Stock Exchange as SBT, posted VND29.02 trillion ($1.18 billion) in net revenue for FY 2023-2024 (July 1, 2023-June 30, 2024), up 17% year-on-year, and surpassing the set target by 41%. Sugar remained the company's primary earner with 91.5% of total revenue.

Its pre-tax profit during the period surged 26% year-on-year to nearly VND908 billion ($36.9 million), surpassing the annual goal by 7%.

TTC AgriS recorded sugar sales of over one million tons during the fiscal year, 66% of it in the domestic market and the rest exported.

Domestic sales generated revenues of VND21.19 trillion ($861 million), while exports brought in VND7.83 trillion ($318.12 million).

Despite its strong revenue and market-leading position, TTC AgriS has experienced a decline in gross profit margin since FY 2020-2021, reaching just 10.6% in FY 2023-2024, the lowest in five years. This figure is notably lower than that of smaller competitors such as Son La Sugar JSC (37.4%), Lasuco (13%), Kon Tum Sugar JSC (23%), and Cao Bang Sugar JSC (20.4%).

As of June 30, 2024, TTC AgriS's total assets value amounted to VND34.07 trillion ($1.38 billion), an increase of VND4.1 trillion ($166.6 million) from July 1, 2023. As much as 67% of this value was funded by liabilities, including VND16 trillion ($650.1 million) in loans.

The company’s interest expenses in FY 2023-2024 rose 14.7% year-on-year to VND1.72 trillion ($70.05 million), contributing to a financial loss of VND731 billion ($29.7 million).

TTC AgriS expanded its sugar-growing area to 71,000 hectares as of FY 2023-2024, up 6,000 hectares over FY 2017-2018. The company has also enlarged its export market to over 50 countries and territories, compared to just six five years ago.

Looking ahead, the firm plans to expand its global growing area to nearly 90,000 hectares by 2025, with particular focus on Australia.

To meet its revenue target of VND60 trillion ($2.4 billion) by 2030, TTC AgriS is seeking to raise capital through bonds and financial institutions. It has decided to abandon a plan to issue 148 million shares at VND12,000 ($0.49) per share due to unfavorable market conditions.