Vietnam seafood companies' profit may still be satisfactory in the second quarter

According to Mr. Truong Dinh Hoe - General Secretary of VASEP, seafood export price may continue to increase in the second half of the year. The market demand is still strong, especially after businesses got back to trade promotion activities and events such as the Seafood Expo North America in March and the Seafood Expo Global in April. Therefore, seafood exports may reach 9.5-10 billion USD this year, increases by 6-12% over the previous year.

In the positive scenery, many seafood businesses have annouced their April business results with strong growth as well as the forecasting growth for the second quarter.

As from Mr. Pham Hoang Viet – General Manager of Sao Ta Food Joint Stock company (FIMEX VN) – the member unit of PAN Group shared that the business situation in the second quarter are still on track with many positive. The profit of the company for the second quarter may exceed at least 20% comparing to the last year same period.

This year, FIMEX VN shrimp sector had set a target of increasing consolidated revenue by 11% to reach 5.290 billion VND, with the profit before tax of at least 320 billion VND, increasing 10.7%. Particularly in the first quarter, FIMEX VN recorded 1,328 billion VND in net revenue- an increase of 37%; the profit after tax of parent company shareholders is 41 billion VND, increasing by 36.6% compared to the first quarter of 2021. The company explained the increase in profit thanks to higher sales, raw material stockpiling and signing contracts that anticipate fluctuations in freight rates.

This year, 2 new factories come into operation (Sao Ta seafood factory/ Tam An shrimp processing line) with a capacity of about 25%/50% of the designed capacity will provide an additional 3,805 tons of shrimp production for the company. At the same time, the company plans to continue to expand by 52 hectares of farming areas this year and 48 hectares of farming areas in 2023. The expansion of 52 hectares this year will help the company to have about 1,700-2,000 tons of raw shrimp from home pond.

The expansion of the farming area will ensure the source of input materials for two new factories and focus on producing value-added shrimp products. Sao Ta's target market is still the US, EU and Japan.

Vinh Hoan Corp announced its April revenue (including Sa Giang Trading Ltd) reached VND 1,651 billion, a leap of 98% increase compared to 2021’s same period and 20% compared to last month. The driving force came from the US market, with the export value reached 983 billion VND - increased 240% over the same period in 2021 and 51% over the previous month. The revenue in April of this year was equivalent to nearly 70% of the revenue of the second quarter of 2021. Accumulating 4 months of 2022, the pangasius company recorded a total revenue of VND 4,924 billion, increased by 88% compared to the same period in 2021.

Similarly, Nam Viet Corp announced the April revenue of 433 billion VND, profit after tax of 116 billion VND; respectively increased by 6% and 68% compared to the monthly average in the first quarter. Gross profit margin of Nam Viet reached 37.9%, improved from 29.4% in the first quarter. April's profit was nearly five times higher than the low level of 23.7 billion VND recorded in the second quarter of 2021. Accumulated 4 months, the revenue is 1,644 billion VND, profit after tax is 323 billion VND. Gross profit margin reached 32%. With this result, the enterprise has completed 45% of the annual profit plan.

Compiled by My Hanh