Producing shrimp tempura at Fimex VN, a member of the PAN Group. — Photo courtesy of the company

The PAN Group (HOSE: PAN) has released its financial statements for the second quarter, which shows a 5 per cent year-on-year increase in net revenues to VND1.839 trillion (US$79.3 million).

Net profit was VND66.7 billion ($2.87 million), down 34 per cent mainly due to higher costs because of the impact of the COVID-19 pandemic and an extraordinary loss from transfer of land at its Northern Bibica confectionery factory.

First half revenues and profits were VND3.122 trillion ($134.67 million) and VND95.4 billion ($4.1 million), 41 per cent and 31 per cent of targets.

In its agricultural business, flower exports faced difficulties since demand declined in Japan and logistics costs increased.

But the seed market improved with net revenues increasing by 6 per cent and profits by 24 per cent thanks to cost saving measures.

Its packaged rice products have also been well received in the market.

Shrimp exports remained steady and profits rose by 2.3 per cent, thanks to a new 90ha shrimp farm and 6000-tonne cold storage.

Revenues and profits from pangasius exports continued to decline due to a sharp decrease in export prices, but this is only expected to be temporary.

In the long term the pangasius segment has great prospects thanks to the value-added products that have won over customers in fastidious markets like Japan and the EU.

Revenues from confectionery were down 18 per cent because it was the low season and the pandemic had an impact.

Revenue in the nuts segment grew by 25 per cent thanks to excellent sales campaigns, but since costs also increased, profits remained unchanged.

In the third quarter, its dried fruit products will be officially introduced to the market and have some export orders already.

If the pandemic situation does not worsen, the company is confident of achieving the year’s targets. — VNS