In the second quarter, Sao Ta Food Joint Stock Company (stock code FMC-HoSE) recorded revenue of 1,243 billion VND, up 20% over the same period in 2023. The above results came from shrimp revenue in the period increasing by 21% and consumption output increasing by 22% compared to the second quarter of 2023, mainly from the Japanese market.
Sao Ta Food is currently the largest Vietnamese shrimp exporter to the Japanese market. Although Sao Ta Food's shrimp selling price to the Japanese market is still 1% lower than the same period last year, the company's gross profit margin in the second quarter of 2024 still improved strongly, increasing by 4.7 percentage points.
This comes from Sao Ta Food's self-sufficiency rate of raw shrimp, which has increased sharply as the production of self-farmed raw shrimp has increased. In the first quarter of 2024, 200 hectares of new farming areas out of the company's current 525 hectares of farming areas were harvested, and these shrimps were sold in the second quarter of 2024.
However, Sao Ta Food's business results in the second quarter of 2024 were somewhat restrained when the anti-dumping duties refund did not take place due to the lack of final results from the investigation. The company also recorded anti-subsidy duties provisions, causing a significant increase in selling expenses.
Therefore, Sao Ta Food recorded 72.4 billion VND in after-tax profit in the second quarter of 2024, down 5% compared to the same period in 2023.
Regarding the business outlook for the second half of this year, Sao Ta Food's shrimp consumption output is expected to increase as key markets enter the year-end holiday season and the economies of countries accelerate recovery as the US Federal Reserve (Fed) cuts interest rates.
The latest data shows that Sao Ta Food's export output in July 2024 maintained a growth rate of 7% over the same period last year, signalling that the growth momentum is gradually being consolidated.
Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food, also said that although there are still some difficulties, in general, the second half of 2024 is a "more breathable period.".
According to a recent assessment by Rong Viet Securities, Sao Ta Food's shrimp selling price in the second half of this year is expected to increase by 9% compared to the same period last year. Notably, Sao Ta Food also benefits from the re-appreciation of the Japanese yen.
Specifically, although Sao Ta Food records revenue in USD in the Japanese market, the increase in the yen/USD exchange rate will help the company convert more USD and earn more VND. Therefore, the company still benefits in the context of the increase in the Yen/VND exchange rate, according to Rong Viet Securities. Currently, the Yen/VND exchange rate is 5% higher than the previous quarter.
Based on current market conditions, Sao Ta Food's revenue this year is forecasted to reach 6,435 billion VND and the parent company's after-tax profit will be 342 billion VND, up 26% and 24%, respectively, compared to 2023.
(seafood.vasep .com.vn) The return of Donald Trump to the White House for a second term will bring significant impacts on Vietnam, particularly its pangasius export sector. Trump's economic policies, such as raising import tariffs, reducing corporate income taxes, and attracting foreign direct investment (FDI) back to the US, are expected to directly influence various industries in Vietnam.
(seafood.vasep.com.vn) The UAE ranked 16th among importers of Vietnamese shrimp from 2018 to 2022, accounting for approximately 0.5% of Vietnam's total shrimp export value. Annually, Vietnam exported around US$20 million worth of shrimp to this market.
(seafood.vasep.com.vn) The company also announced that its farms are well-prepared and will begin stocking in mid-November when the weather conditions are favorable.
(seafood.vasep.com.vn) To maximize natural advantages and increase the value of local aquatic products, Ca Mau province is promoting the ecological shrimp farming model under mangrove forests. This model not only brings high profits to people thanks to businesses committing to purchasing products at prices 10-20% higher than the market price but also aims for sustainable development and environmental friendliness.
(seafood.vasep.com.vn) The Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the United Arab Emirates (UAE) was signed after just over a year of negotiations. With high demand for premium seafood in the UAE, particularly for shrimp and tuna products, Vietnam’s tuna industry is expected to gain increased export opportunities and higher product value thanks to the preferential terms of the CEPA.
(seafood.vasep.com.vn) In October 2024, seafood exports from Vietnam are estimated to exceed $1 billion, marking a 28% increase compared to the same period last year. This achievement signifies the first return to the $1 billion milestone in 27 months, since June 2022, providing a significant boost for Vietnamese seafood enterprises.
(seafood.vasep.com.vn) Under the theme "Dong Thap Pangasius: Green Journey - Green Value," the Dong Thap Pangasius Festival 2024 will take place over two days, November 16th and 17th, at Vo Nguyen Giap Square in Hong Ngu City.
(seafood.vasep.com.vn) The Department of Agriculture and Rural Development of Kien Giang has announced a plan to stabilize the biosafety rice-shrimp production area at 117,340 hectares by 2030.
(seafood.vasep.com.vn) According to the Department of Fisheries in Ca Mau, the total aquatic product output in the region is estimated at 536,140 tons as of October 17, achieving 82.23% of the annual plan and marking a 1.74% increase compared to the same period last year. Within this total, shrimp production stands at 208,495 tons, reaching 82.41% of the planned target and showing a 2.23% increase year-over-year.
(seafood.vasep.com.vn) According to data from Vietnam Customs, pangasius exports to Iraq have surged significantly in the first nine months of 2024, marking the highest levels seen in three years. This upward trend has positioned Iraq as a key market for Vietnamese pangasius, even surpassing Iran, traditionally regarded as a gateway for trade between Vietnam and the Middle East.
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