Vinh Hoan's revenue jumps 61% in April

Saturday, May 22, 2021 08:01

Inside one of Vinh Hoan's processing plants. — VNS/VNA Photo

Vinh Hoan Corporation (VHC) just released its April business results with a gain of 61 per cent year-on-year in total revenue.

Of which, revenue from exporting pangasius increased 54 per cent over the same period last year to VND529 billion, while revenue from by-products and value added products surged.

Regarding markets, revenue from Europe rose 3 per cent, China jumped 246 per cent, US climbed 130 per cent and other areas increased 12 per cent.

According to Vinh Hoan, the business results were improving compared to last April, when the number of COVID-19 cases surged worldwide, forcing many countries to shut down.

In 2021, Vinh Hoan set a target of VND8.6 trillion in consolidated revenue, up 22 per cent over last year. Meanwhile, the company expected a drop of 3 per cent in profit after tax to VND700 billion.

The world's largest producer of pangasius will spend VND1.3 trillion on construction investments. Of which, VND700 billion will be spent building a feed mill, a fingerling farm and getting land use rights for a high-tech agricultural and aquatic complex.

The company will also spend VND200 billion to renovate factories in Thanh Binh District, Dong Thap Province and at Vinh Phuoc Food Company Ltd. The remaining VND400 billion will be used for other investments.

Analysts in the industry expect that demand for pangasius will recover soon in Vinh Hoan's main markets, including the US, Europe and China, thanks to vaccine roll-out programmes in these markets.

However, the pangasius export price will struggle to rebound as customer confidence recovers slowly. In addition, higher raw pangasius price in the first half of 2021 due to undersupply also affects the company's profit.

In the second half of 2021, the price can bounce back when customer confidence returns and raw pangasius price falls as farmers increase production.

At Vinh Hoan, as outside pangasius accounts for 40 per cent of total raw pangasius source, gross margin of pangasius might decline in the first six months and gradually recover in the second half of the year.

On the stock market, VHC shares, listed on the Ho Chi Minh Stock Exchange (HoSE), closed Friday's trade at VND39,500 per share. — VNS


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