Vĩnh Hoàn posts record profit in Q4 2024, highest in 6 quarters

Vĩnh Hoàn Joint Stock Company (HoSE: VHC) recently published its financial report for Q4 2024, showing clear signs of recovery and marking the return of growth momentum after a challenging period for the seafood industry.

In the last quarter of 2024, Vĩnh Hoàn reported a revenue of VND 3,205 billion, up 34% compared to the same period last year. Additionally, the company also recorded VND 148 billion in financial income, a 87% increase.

On the other hand, Vĩnh Hoàn's expenses in Q4 2024 saw a significant rise compared to Q4 2023. Specifically, financial expenses reached VND 49 billion, and administrative expenses amounted to VND 137 billion, increasing by 14% and 47%, respectively, compared to the previous quarter.

After deducting these expenses, Vĩnh Hoàn, the largest pangasius exporter, reported a profit of VND 440 billion, a 4.8-fold increase compared to the same period last year. This is the highest profit the company has seen in the past six quarters. Explaining the profit increase, the company stated that the growth was due to improved prices of pangasius products and higher production volume.

For the whole year of 2024, Vĩnh Hoàn recorded a revenue of VND 12,535 billion and an after-tax profit of VND 1,310 billion, representing increases of 25% and 34%, respectively, compared to 2023.

In 2024, Vĩnh Hoàn set two business scenarios: a basic scenario and an optimistic scenario. For the basic scenario, Vĩnh Hoàn aimed for revenue of VND 10,700 billion and an after-tax profit for the parent company of VND 800 billion. In the optimistic scenario, the company expected revenue of VND 11,500 billion and after-tax profit of VND 1,000 billion.

Thus, by the end of 2024, Vĩnh Hoàn had exceeded its profit targets for both business scenarios.

Regarding the company's business situation, as of December 31, 2024, Vĩnh Hoàn's total assets reached VND 12,249 billion, a 3% increase compared to the beginning of the year. Of this, cash and cash equivalents increased 2.3 times to VND 570 billion.

Additionally, the company's term deposits reached VND 2,220 billion, an increase of 15% compared to the beginning of the year. By the end of 2024, Vĩnh Hoàn's inventory value stood at VND 2,911 billion, a 22% decrease compared to the start of the period.

As for the capital structure, Vĩnh Hoàn's liabilities slightly decreased to VND 3,247 billion. Although short-term loans increased by 5%, from VND 2,157 billion to VND 2,277 billion, the company no longer had any long-term loans, whereas it had over VND 101 billion at the beginning of the year.

On the market front, the Vietnam Association of Seafood Exporters and Producers (VASEP) reported that pangasius prices in Vietnam have surged at the beginning of 2025 due to limited supply.

Currently, pangasius prices are at their highest level in the past three years. Specifically, pangasius weighing more than 1.2 kg reached VND 32,440 per kg, the highest recorded since 2022.

VASEP predicts that 2025 will be a year of new milestones for pangasius exports. Exports to the United States will be particularly favorable, as on January 17, 2025, Vietnam and the United States signed a bilateral agreement to remove the anti-dumping tax on pangasius fillets exported from Vietnam.

As a result, Vĩnh Hoàn has been removed from the scope of the anti-dumping tax on pangasius and basa exports to the United States. This agreement to resolve the anti-dumping tax dispute opens up significant opportunities for Vĩnh Hoàn and Vietnam's pangasius industry, helping to expand exports to the U.S. market with high-quality and sustainable products.