Vietnam seafood majors post Q2 profit plunge
Seafood majors Minh Phu, Vinh Hoan and Sao Ta all reported sharp profit drops in the second quarter of this year, while Nam Viet made a loss after six consecutive profitable quarters.
Accordingly, Minh Phu Seafood Corporation, Vietnam’s leading shrimp exporter, recorded net revenue of VND2.35 trillion ($99 million), down 48% year-on-year, and after-tax profit of VND10 billion ($421,300), down 93%.
Minh Phu said that the reason for the decline in profits was due to low production and business results of commercial shrimp farming subsidiaries like Minh Phu Loc An Aquaculture Co., Ltd., Minh Phu-Kiengiang Seafood Co., Ltd. and Minh Phu Aquatic Larvae Co., Ltd.
Registered on the unlisted public company market UPCoM as MPC, Minh Phu reported net revenue of VND4.47 trillion ($188.4 million) in the first six months of the year, down 49%, and an after-tax profit loss of VND88 billion ($3.7 million), while in the same period last year it made a profit of VND242 billion ($10.2 million).
As of June 30, MPC's total assets stood at VND10.43 trillion ($439.5 million), down 2% compared to the beginning of the year. Of which, inventories were VND5.61 trillion ($236.2 million), up 11% and accounting for 53% of total assets, while cash and cash equivalents hit VND338 billion ($14.2 million), down 62%.
Minh Phu has targeted 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 38% year-on-year, respectively.
In 2023, the company is set to produce 60,000 tons of seafood, according to its 2022 annual report. It said it is striving for the value of Vietnamese raw shrimp to equal that of India by 2030 and that of Ecuador by 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 stock market, the MPC price hit VND18,300 ($0.77) on Friday.
Meanwhile, Vinh Hoan Corporation, Vietnam's leading pangasius fish exporter, recorded an after-tax profit of VND412 billion ($17.4 million) in Q2, down 47.7% year-on-year. The company's net revenue reached nearly VND2.72 trillion ($114.7 million), down 35.6%, according to its Q2 consolidated financial statement.
Vinh Hoan said Q2 profits fell due to lower sales volume and selling prices.
In the first half of 2023, Vinh Hoan posted net revenue of VND4.95 trillion ($208.3 million) and post-tax profit of VND665 billion ($28 million), down 34% and 51%, respectively.
At the end of June, Vinh Hoan's total assets had reached VND12.17 trillion ($512.6 million), up 5.1% compared to the beginning of the year, of which inventories increased by 39% to VND3.93 trillion ($165.4 million).
Vinh Hoan has set a net revenue target of VND11.5 trillion ($484.4 million) this year, down 13%, and after-tax profit of VND1 trillion ($42.1 million), down 49%.
On the Ho Chi Minh Stock Exchange (HoSE), VHC stood at VND76,600 ($3.23) per share at the close on Friday.
Another leading seafood exporter, Sao Ta SJC (FMC) reported net revenue of VND1.03 trillion ($43.5 million) in Q2, down 26% year-on-year, and after-tax profit of VND76 billion ($3.2 million), down 36%.
Two of the main reasons were a decrease in export volume and shrimp selling prices. However, chairman Ho Quoc Luc told Theinvestor that shrimp consumption will likely increase over the rest of this year.
Sao Ta posted net revenue of VND2.04 trillion ($86.24 million) and approximate after-tax profit of VND125 billion ($5.28 million) in the first half of the year, down 25% and 22% year-on-year, respectively.
In 2023, the company has targeted total revenue of VND5.9 trillion ($248.5 million) and pre-tax profit of VND400 billion ($16.85 million).
At the end of Q2, Sao Ta's total assets stood at VND3.2 trillion ($134.8 million), up 7% compared to the beginning of the year, of which inventories hit VND1.29 trillion ($54.2 million), up 38.5%.
On the HoSE, FMC finished at VND46,500 ($1.96) per unit on Friday's close.
Meanwhile, Nam Viet Corporation (Navico), reported a net revenue of VND1.07 trillion ($45.2 million) in Q2, down 17% year-on-year, and a loss of VND51 billion ($2.1 million) after six consecutive quarterly profits.
In the first half of this year, Navico (ANV) earned net revenue of VND2.23 trillion ($93.9 million) and after-tax profit of VND41 billion ($1.7 million), down 11% and 90% year-on-year, respectively.
As of June 30, Nam Viet's assets stood at VND5.48 trillion ($230.88 million), of which inventory was VND2.63 trillion ($110.9 million), accounting for 48% of total assets.
Nam Viet has set total revenue target of VND5.2 trillion ($219 million) and pre-tax profit of VND300 billion ($12.6 million) in 2023.
On the HoSE, the ANV share price stood at VND36,400 ($1.53) per unit at Friday's close.
Ministry of Agriculture and Rural Development data shows that in the first six months of 2023, Vietnam's seafood exports reached $4.2 billion, down more than 27% compared to the same period in 2022,
Of which, the two main export products, shrimp and pangasius, were lower than in the same period in 2022. The ministry assessed that production and exports in the seafood industry are suffering from high input costs, along with credit tightening and high interest rates that are making it difficult for businesses to source capital.
Top broker SSI Securities said that despite many difficulties, seafood export firms will start to record improved profits in the second half of 2023, thanks to lower input prices for shrimp, raw fish and aqua feed, and reduced shipping costs.
SSI estimates that net revenue and net profit of many companies will increase strongly again in 2024, as exports will begin to recover at the end of the fourth quarter of 2023 or the beginning of 2024.
- Read More
Hanoi TikToker internationally wanted for involving in multi-billion-dollar investment scam
Hanoi police have issued an international arrest warrant for Le Khac Ngo, known as "Mr. Hunter," a key accomplice in a recently-dismantled massive foreign exchange and securities fraud ring.
Society - Sat, December 21, 2024 | 10:57 pm GMT+7
Unlocking Phu Quoc’s potential to become the 'Hawaii of the East'
Leading global tourism companies have remarked that Phu Quoc has "yet to receive the recognition it deserves," despite its impressive and unexpected growth rate.
Travel - Sat, December 21, 2024 | 7:20 pm GMT+7
Thai central bank maintains policy interest rate at 2.25%
The Thai Chamber of Commerce (TCC) has said it backs the decision by the Bank of Thailand, the country's central bank, to maintain the policy interest rate at 2.25%, considering the move as suitable for a reviving economy.
Southeast Asia - Sat, December 21, 2024 | 5:43 pm GMT+7
Vietnam's military-run tech giant Viettel strikes big deals at international defence expo
Subsidiaries of Military Industry and Telecommunications Group (Viettel) signed a string of significant contracts with major global partners during the first two days of the Vietnam International Defence Expo 2024 in Hanoi.
Companies - Sat, December 21, 2024 | 5:36 pm GMT+7
Taiwan’s Wistron acquires 37ha land lot in northern Vietnam for expansion
Taiwan-headquartered Wistron, a top electronics provider and an Apple supplier, will further its investment in Vietnam’s northern province of Ha Nam by acquiring another 37.1-hectare land lot.
Companies - Sat, December 21, 2024 | 2:08 pm GMT+7
VAFIE seeks to promote sci-tech development, intellectual property policies
The Vietnam’s Association of Foreign Invested Enterprises (VAFIE) aims to enhance policies for the development of science, technology, and intellectual property, creating a more conducive investment environment.
Companies - Sat, December 21, 2024 | 1:59 pm GMT+7
Vietnamese dong likely to depreciate 3% in 2025: VinaCapital
The Vietnamese dong is likely to depreciate 3% in 2025 on anticipation that the US Dollar/DXY Index will finish 2025 nearly unchanged, says Michael Kokalari, chief economist at Vietnam's leading fund manager VinaCapital.
Economy - Sat, December 21, 2024 | 11:23 am GMT+7
First luxury railway journey across Vietnam features Indochine architecture
PYS Travel has launched the first luxury railway journey across Vietnam named Sjourney, marking a new milestone in the railway tourism sector.
Travel - Sat, December 21, 2024 | 10:09 am GMT+7
Vietnam among 40 most beautiful countries: US publication
Vietnam has secured the 36th position in the ranking of the 40 most beautiful countries in 2024 in a testament to its undeniable charm and appeal, according to US News & World Report.
Travel - Sat, December 21, 2024 | 10:04 am GMT+7
Foxconn to invest $16 mln more in Vietnam’s Quang Ninh province
Competition Team Technology (Vietnam) Company Limited, a subsidiary of Foxconn, will invest an extra $16 million in its “S- Vietnam” project in the northern coastal province of Quang Ninh.
Industries - Sat, December 21, 2024 | 9:53 am GMT+7
Vietnam’s small- and medium-sized businesses embrace digitization to weather global expansion risks: survey
While global expansion remains a key priority for the country's small- and medium-sized businesses (SMBs), achieving this goal requires overcoming challenges by leveraging the right talent and advanced technologies, including AI, according to Payoneer’s findings.
Companies - Sat, December 21, 2024 | 7:56 am GMT+7
Vietnam tax authorities collect $169 mln from delinquent taxpayers through exit bans
Vietnam's tax authorities have collected about VND4.3 trillion ($169 million) from 6,500 delinquent taxpayers through exit ban measures so far this year, nearly five times the amount reported in the middle of the year.
Finance - Fri, December 20, 2024 | 10:29 pm GMT+7
French, Chinese EV manufacturers to invest in Indonesia
Three global electric vehicle (EV) manufacturers - France’s Citroen and China’s BYD and AION - have committed to establishing EV manufacturing plants in Indonesia, Minister of Industry Agus Gumiwang Kartasasmita has announced.
Southeast Asia - Fri, December 20, 2024 | 6:42 pm GMT+7
Thailand optimistic about export prospects for 2025
With an upbeat export growth projection of about 5% this year, Thailand's Ministry of Commerce and its private sector are optimistic for a further 2-3% growth in 2025, bringing total export value to about $305 billion.
Southeast Asia - Fri, December 20, 2024 | 6:36 pm GMT+7
Philippines imposes temporary import ban on live cattle from Japan
The Philippines has imposed a temporary ban on the importation of live cattle and buffalo as well as their products from Japan due to the outbreak of lumpy skin disease (LSD), its Department of Agriculture said on Thursday.
Southeast Asia - Fri, December 20, 2024 | 5:53 pm GMT+7
Malaysia-China trade hits nearly $100 bln
Malaysia-China economic ties have continued to strengthen, with bilateral trade reaching nearly $98 billion between January and November, matching the 2023 total trade volume.
Southeast Asia - Fri, December 20, 2024 | 5:51 pm GMT+7