Vinh Hoan Corporation sets 2024 business plan with two scenarios, targeting net profit of VND800-1,000 billion

Vinh Hoan Corporation has just announced supplementary documents for the 2024 Annual General Meeting of Shareholders, scheduled to be held on April 17.

According to the announcement, Vinh Hoan Seafood plans to operate under two scenarios for 2024. Under the moderate scenario, the company targets revenue of VND10,700 billion, an increase of 6.6% compared to the actual figure for 2023. However, after-tax profit is expected to decrease by 12.9%, reaching only VND800 billion.

Under the more optimistic scenario, the company targets revenue of VND11,500 billion and after-tax profit of VND1,000 billion, representing increases of 14.6% and 8.8%, respectively, compared to the actual figures for 2023.

Vinh Hoan Seafood intends to invest VND930 billion this year to expand and update its factories and equipment for aquaculture and manufacturing activities in order to meet these business ambitions.

In February 2024, Vinh Hoan Seafood recorded total revenue of VND801 billion, an increase of 6% compared to the same period last year. However, revenue decreased by 13% compared to January 2024, mainly due to a 7% decrease in revenue from the tra fish segment and the fact that February coincided with the Tet holiday, which led to a decrease in both production activities and consumer demand.

The company's total revenue for the first two months of 2024 reached VND1,722 billion, an increase of 42% compared to the same period in 2023. This represents an estimated 15-16% completion of the company's annual revenue target.

Prospects for the seafood industry in 2024 are positive, with many financial institutions forecasting growth of 20-30% as the economy recovers and inflation cools. The industry could also benefit from the US government's tightening of import bans on Russian seafood, including salmon, cod, pollock, and crab. Vietnamese pangasius is considered a substitute for pollock in the US market.

As the largest pangasius exporter in Vietnam, Vinh Hoan Seafood is a direct beneficiary of the US government's recent moves. The US is also the main market, accounting for 40-50% of Vinh Hoan Seafood's total pangasius export revenue.

The European Commission (EC) has also decided not to allow Russian seafood products to benefit from tariff preferences in the 2024-2026 period.

Previously, in November 2023, the European Union also decided to strengthen controls on imports of fish products from China to control illegal, unreported and unregulated (IUU) fishing activities. These moves will also open up opportunities for Vietnamese pangasius exporters to increase their market share in the EU.