Sao Ta Foods (FMC) plans for a growth in profit by at least 11% in 2022, pay dividends at the rate of 20%

The Board of Directors of Sao Ta Food (Fimex, HOSE: FMC) has just announced the business plan for 2022.

Accordingly, Fimex's target is to reach about 5,290 billion VND in revenue, up 11.3%; and at least 320 billion VND in profit before tax, up 10.7% as compared to 2021.

Sao Ta also plans to pay dividend of 20% in 2022 (VND2,000/share), equal to the dividend expected to be paid in 2021.

As the Covid-19 outbreak is under control in import markets, the company's Executive Board predicts the demand for seafood, particularly shrimp, to grow considerably.

Due to their excellent nutritional content and simplicity of preparation, shrimp products are quite popular. Consumer preferences have shifted as a result of the Covid-19 pandemic, with a preference for ready-made convenient products (instant goods) in small packages. This trend is consistent with Sao Ta's orientation, processing capability, and strength.

The solution, as determined by Sao Ta, is to support the development of agricultural regions in order to have clean raw materials and to prove with the customers that Sao Ta shrimp are monitored directly from the pond. In June, the company will begin operations on a 52-hectare shrimp aquaculture facility in Khang An. By 2025, the unit aims to expand the cultivation area to a maximum of 500 hectares.

However, regional military conflicts can lead to many threats, first of which is the constantly rising oil prices that will make logistics costs impossible to cool down.

Recently, Sao Ta Food has announced its export revenue in February 2022 with a gain of 11.3 million USD, up 19% on the corresponding period last year.

In February, shrimp production of Sao Ta Foods (FMC) reached 1,276 tons, up 41% and finished agricultural products reached 148 tons, 2.8 times higher.

Additionally, according to FMC, the shrimp farm finished stocking the main crop on schedule on February 22, 2022.

Due to the Tet vacation, February is the month with the lowest activity days of the year, according to Sao Ta Foods. Besides, on February 22, 2022, the shrimp farms finished stocking the primary harvest on time.

Sao Ta Foods' finished shrimp output in January increased by 40% to 1,820 tons compared to the same month in 2021, while agricultural production increased by 15% to 164 tons.

Sales in the first month of the year was 28.9 million USD, up 90% over the same period last year.

Sales climbed dramatically in January since there were shipments at the end of 2021 that would be reported in 2022. Furthermore, because January 2021 is the first month of operation, Khang An (member unit) has substantially larger sales, which is seen as a new sales milestone in Sao Ta's development.

Notably, on the market, FMC's stock price hit its ceiling at 67,800 dong/share (end of session 28/03), an increase of nearly 7% with average trading volume of more than 780,000 shares.

Compiled by Khanh Linh