2017: MPC targets to increase by 10 times in net profit

News 08:56 13/06/2017
(seafood.vasep.com.vn) In 2016, due to unfavorable weather and lack of raw materials, Minh Phu Seafood Corp. (MPC) was not able to achieve its business plan.

Net profit to go up 10 times

In 2016, the company completed 90% in production output; 96% in export turnover; 87% in net sales and 20% in profit before tax of the plan. Specifically, the export turnover of MPC reached US$531 million, and its production output was 42.457 MT. Accordingly, total net revenue was VND11.973 billion and pre-tax profit came to VND101 billion. After deducting tax expenses, the company earned VND72 billion in profit after tax. After deducting tax expenses, the company earned VND72 billion in profit after tax of its parent company.

Mr. Le Van Quang, Chairman of the company, said that out of all importing markets of MPC, the U.S remained as the largest one (US$220 million), accounting for 41% of total export value; followed by the Japan (US$109 million) and Canada (US$48 million) with the shares of 21% and 9%, respectively.

In terms of business plan in 2017, MPC set out an ambitious plan with total consolidated net sales of VND15.781 trillion and consolidated net profit of VND841 billion, 10 times more than 2016. In this plan, MPC set a target of US$681 million in consolidated export turnover with a combined production of 55,300 MT of finished shrimp.

Profit comes from the new shrimp farming method

According to Mr. Quang, with the determination of the whole company, MPC is to reach and even exceed the plan. In mid-March this year, MPC reduced the price of raw shrimp that farmers still made profit. Therefore, this year, the price of shrimp of Vietnam decreased, equal to that of India and Indonesia but sales will be higher than that of those countries thanks to better technology.

In April 2017, production of MPC posted a year-on-year increase of 32.6% with a 46.7% rise in the value. In the first four months of this year, the output climbed up 19% and the value rose by 28.6% and exceeded 10% of the plan. Mr. Quang added that May, June, September and October are the main crops so it is easy to complete the plan of the year.

Vietnam shrimp entered the U.S will be subject to anti-dumping tax for another five years, but this will have no impact on MPC’s exports, said Mr. Quang. After pursuing an eight-year lawsuit against the U.S side, MPC won the case and the DOC removed from the anti-dumping duty when MPC exports shrimp to the U.S. At the same time, the part of the anti-dumping duties that MPC has paid for in previous years will be refunded, which is expected to amount to millions of dollars.

www.minhphu.com

Compiled by Dieu Thuy

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