Favorable exports, seafood enterprises set high profit targets

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FMC's shrimp farming area for export. Photo: DNCC

Set record high goals

In the first months of this year, seafood exports achieved positive results via the escalating prices of key export products such as shrimp and catfish and very high export volume of many seafood enterprises.

According to Vinh Hoan Joint Stock Company (VHC), the price of catfish has increased and will continue to increase from now until the end of the year. VHC's export orders have been signed until the third quarter of 2022, some even are signed for the whole year.

Thanks to such achievements, in the first three months of the year, VHC recorded an increase in total export revenue of 80%, reaching VND3,225 billion. Most export markets recovered, especially the US and EU. The slower increase in COGS enabled the gross profit margin to improve from 15.3% to 23.8%, equivalent to a gross profit of VND778 billion, up 185% over the same period. The profit is over VND540 billion, four times higher than the same period in 2021.

With the above results, in 2022, VHC sets a record high business target with net revenue of VND13,000 billion and profit after tax of VND1,500 billion, up 44% and 36% respectively compared to the previous year. This is also a new peak business plan of this enterprise in recent years.

Nam Viet Joint Stock Company also set an impressive business plan in 2022 with revenue of VND4,900 billion, profit before tax of VND720 billion, up 40% and 4.8 times respectively compared to 2021; Cuu Long An Giang Seafood Import-Export Joint Stock Company expects pre-tax profit to increase by more than 318% to VND200 billion.

The multinational Investment and Development Joint Stock Company set a target in 2022 to reach VND8,300 billion in net revenue, up 45%, and VND900 billion in after-tax profit, 6.6 times higher than the previous year. IDI's parent company, Sao Mai Group Joint Stock Company (Code: ASM) also set a high target with revenue of VND14,700 billion, up 29%, profit after tax of VND1,630 billion, 2.3 times higher year on year.

Expanding exports, investing in new products

Not only increasing export orders, but many seafood enterprises have also expanded investment and export of new products.

According to Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, with achievements and confidence in overcoming many challenges, FMC enters 2022 with a rather optimistic attitude and many good signals. Particularly, two newly built processing factories that have been and will be operational during the year and new competitive products or processing products that have never been processed.

FMC sets a target of total consolidated revenue in 2022 to reach VND5,290 billion; pre-tax profit is expected to reach VND320 billion, up 10.7% over the same period in 2021 – which is the highest pre-tax profit in the history of the business.

FMC's performance in the first quarter of the year revealed quite good results, up evenly in every index. This second quarter, FMC will export the first shipments of completely new products in response to the high-end distribution system in the United States, being a turning point for Khang An member company in particular and FMC in general.

The enterprise is expected to expand its production scale this year. Specifically, Sao Ta's new shrimp processing factory will be completed at the beginning of the third quarter of 2022. Sao Ta will put KAF's 52 hectares of shrimp farming land into operation in the last six months of 2022.

At the end of the first quarter of 2022, the Multinational Investment Joint Stock Company estimated at more than VND1,000 billion in revenue, nearly VND200 billion in profit after tax. This is a record quarterly profit in the history of this business. Amid the escalating price of catfish, the Multinational Investment Joint Stock Company is confident with a series of advantages such as a large inventory and the proactivity in raw material sources with a connection area of ​​more than 400 hectares and the availability in the source of raw materials for processing and exporting.

VASEP forecasts that seafood exports in April will still have growth momentum in major markets thanks to the bounce-back of trade and trade promotion activities.

In which, two key export products still hold the top positions. Catfish still maintains its position as the growth champion with an expected increase of 80%, followed by shrimp with a 20% increase.