PAN Group's Annual General Meeting of Shareholders set record after-tax profit in 2024. — Photo courtesy of the group
PAN Group set a net revenue of VNĐ14.7 trillion (US$580.6 million) in 2024 and after-tax profit of VNĐ882 billion, posting 12 and 8 per cent year-on-year increases.
This information was released at the 2024 Annual General Meeting of Shareholders (AGM) held in Hà Nội on Friday.
The after-tax profit of the parent company is expected to reach VNĐ447 billion this year, increasing 10 per cent over last year – the record level so far.
Nguyễn Thị Trà My, General Director of PAN Group said: “Consolidated revenue in the first quarter of the year reached VNĐ3.46 trillion, up 36.7 per cent over the same period last year. Consolidated after-tax profit was increased by 58 per cent to VNĐ168 billion. After-tax profit for the parent company hiked by 109 per cent to VNĐ83.6 billion.
Moreover, the positive growth observed in the first quarter of 2024 could be attributed to the fact that the baseline performance during the same period in 2023 was relatively modest, given the prevailing market challenges.
By the end of the first quarter, the PAN Group had accomplished 23 per cent of its business plan and reached 19 per cent of the targeted after-tax profit and profit attributable to shareholders of the parent company. Despite not being the peak production season, the group experienced a promising start in the first quarter.
PAN is also anticipating significant strides in recovery for both the export and domestic markets during the latter half of 2024, potentially surpassing the anticipated growth projections across the group's business segments.
In an optimistic scenario, the PAN Group anticipates robust recovery in both the export and domestic markets during the latter half of 2024. As for the profit distribution plan for 2023, the group suggests a minimum cash dividend of 5 per cent.
The company foresees 2024 as another challenging year for production and business activities, with macroeconomic conditions like exchange rates, interest rates, and credit continuing to exhibit unpredictable fluctuations, negatively impacting production and business expansion.
Inflation and interest rates remain high in Việt Nam's primary export markets, such as the US and EU, resulting in unclear prospects for the recovery of consumer demand and orders from these markets.
Meanwhile, the domestic market is only just beginning to recover after two challenging years in 2022 and 2023. Consequently, business plans for each company, as well as consolidation efforts for 2024, are being approached with caution.
Some companies in the agricultural sector are projecting a relatively optimistic revenue growth of 16 per cent, primarily driven by the branded rice and agrochemical segments.
The food sector is anticipated to experience a 17 per cent growth, fueled by market recovery and promising reception of new products in export markets.
The seafood segment aims for a modest 5 per cent increase compared to last year, as market conditions remain somewhat uncertain, with selling prices still hovering at lower levels.
During the 2024 AGM, the PAN Group provided an overview of its 2023 business performance, revealing a consolidated revenue of VNĐ13.2 trillion. This marked a slight decline of 3 per cent compared to 2022, achieving 90 per cent of the set targets. The decrease was primarily attributed to downturns in the seafood and packaged food sectors, stemming from adverse developments in both domestic and export markets.
However, this decline was counterbalanced by growth in the agricultural sector, notably driven by the agricultural chemical business and packaged rice segment, buoyed by increasing rice prices.
In 2023, Việt Nam's economy and financial system faced unprecedented challenges. Despite this, the PAN Group successfully managed nearly VNĐ1 trilllion in bonds due, all of which were settled on time without resorting to external debt sources.
With a robust asset structure boasting a secure leverage ratio and strengths in value-added products, traceability, and substantial profit margins, the PAN Group navigated through these challenges, surpassing profit expectations.
With a favourable profit outlook for 2023, the PAN Group intends to issue cash dividends at 5 per cent of par value and aims to sustain this level in subsequent years to uphold shareholder rights. PAN's objective is to uphold its cash dividend policy, progressively enhancing the rate annually.
Answering the question about the group’s Nguyễn Duy Hưng, PAN Group’s chairman said: “We concentrate on all three sectors: agriculture, fisheries, and packaged foods. None of these segments are neglected because they are all vital to our objectives. Our aim is to elevate agriculture as the flagship of the group, extending its reach globally. We prioritise all three domains and provide unwavering support to our member companies. Each company devises its own development strategy. While establishing a brand and raising capital can be costly endeavors, they are essential investments for our ongoing growth. Despite these expenses, we continue to expand. Furthermore, we consistently meet our bond obligations without the need for restructuring. This year, we have also distributed dividends to our shareholders. — VNS