Two listed cassava starch exporters report contrasting business performances

The business performances of the only two listed cassava starch exporters, Quang Ngai Agricultural Products and Foodstuff JSC (APFCO) and Yen Bai Joint-Stock Forest Agricultural Products and Foodstuff Company, have moved in opposite directions.

APFCO, traded on the Unlisted Public Company Market (UPCoM) as APF, reported VND2.64 trillion ($103.67 million) in net revenue and VND99 billion ($3.89 million) in net profit for the first quarter of 2024, marking increases of 32% and 125% year-on-year, respectively, according to its Q1 consolidated report.

The firm attributed its significant Q1 net profit growth to a VND55.7 billion ($2.19 million) rise in financial revenue, primarily due to the high exchange rate between the U.S. dollar and the Lao kip.

As of March 31, APF’s total assets stood at VND3.95 trillion ($155.49 million), an increase of VND790 billion ($31.04 million) from the beginning of this year. Notably, its liabilities rose by VND718 billion ($28.21 million) to VND2.77 trillion ($109.09 million).

At its 2024 AGM held in April, APF set goals of VND6.7 trillion ($263.21 million) in revenue, up 3% year-on-year, and VND150 billion ($5.89 million) in net profit, down 12%. After Q1, the firm had achieved 39% and 66% of its revenue and net profit targets, respectively.

In contrast, Yen Bai Joint-Stock Forest Agricultural Products and Foodstuff Company, listed on the Hanoi Stock Exchange as CAP, has experienced a downturn. In Q2 (January 1-March 31) of the fiscal year 2023-2024, the firm earned VND402 billion ($15.83 million) in net revenue, down 45% year-on-year, and VND9 billion ($353,560) in net profit, down 74%.

For the first two quarters (October 1, 2023-March 31, 2024), its net revenue fell 16% yer-on-year to VND288.5 billion ($11.33 million), and net profit decreased 58% to VND23 billion ($903,560).

For the fiscal year 2023-2024, CAP targets VND560 billion ($22 million) in revenue and VND70 billion ($2.75 million) in net profit, reflecting declines of 8% and 38% year-on-year, respectively. As of March 31, CAP’s total assets had reached VND391 billion ($15.36 million), an increase of VND99 billion ($3.89 million) from the start of 2024. Its inventory value had surged ninefold to VND279 billion ($10.96 million).

Since going public in 2008, CAP has consistently maintained significant dividend payouts. The company has decided to pay a cash dividend of 50%, or VND5,000 ($0.2) per share, and a stock dividend of 50% for the 2022-2023 fiscal year. It will spend VND50 billion ($1.96 million) and issue over five million shares for these payouts.