Vissan resigned to 20 per cent profit decline this year

Friday, Jun 19, 2020 11:32

The Vissan annual general meeting in HCM City on Thursday approves the annual statements for 2019, a number of targets for this year, profit distribution plans, and other important proposals. — VNS Photo

Vissan Joint Stock Company targets revenues of VND5.58 trillion (US$240.1 million) and pre-tax profits of VND180 billion ($7.73 million) this year, 12 per cent up and 20 per cent down from 2019.

Announcing this at the annual general meeting in HCM City on Thursday, general director Nguyen Ngoc An said due to the impact of the African swine flu that has hit supply, pig prices will remain high this year, gradually decrease next year and stabilise after that.

The Covid-19 pandemic has greatly affected the global economy, including Viet Nam’s, and directly affected Vissan's production and trading, but they are expected to stabilise in 2021, he said.

The company plans to open a slaughterhouse and food processing plant in Long An Province in early 2024, he said.

Since its expenses would increase by then, especially interest and amortisation costs, profits in 2024 are expected to fall, but opening the plant would help increase capacity as well as quality, he said.

In 2020, the company would expand and diversify its online sales channels to provide fresh, safe and hygienic products to consumers quickly and conveniently, he said.

Vissan’s revenue and pre-tax profit reached VND4.99 trillion and VND226 billion last year, a year-on-year increase of 12 per cent and 29 per cent, respectively.

It began sales via a hotline, its Facebook fanpage and e-commerce sites Sendo and Now, he said.

It also launched 10 new processed products, made changes to 16 others to improve quality and reduce production cost and changed the packaging of all its products.

Shareholders also approved many other important proposals at the meeting.

Vissan is one of the country’s leading food companies with 50 stores and more than 130,000 other retail outlets in the traditional and modern trade channels. — VNS

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