In the first half of 2024, seafood exports have recovered, helping many seafood businesses record growth in revenue and profit, but these numbers are still low and far from the business's goals.

In addition, high cost of goods sold, along with increased input costs, also erode the profits of businesses in this field.

Profit growth but still low

Accordingly, Minh Phu Seafood Corporation (Code: MPC) recorded consolidated net revenue in the second quarter of 2024 of VND 3,738 billion, an increase of 59% over the same period last year. Due to the cost of goods sold in the period increasing by 66%, Minh Phu's gross profit margin was only 10.5%, resulting in "Shrimp King" Minh Phu reporting a profit after tax of VND 38.4 billion, nearly 4 times higher than the same period last year.

According to the company's explanation, the positive growth in business results during the period was due to the effective production activities of shrimp breeding and commercial shrimp companies.

In the first 6 months of the year, Minh Phu's net revenue reached VND 6,488 billion, up 45% over the same period in 2023; profit after tax reached VND 46 billion, while in the same period last year it lost VND 88 billion. This year, Minh Phu set a revenue target of VND 18,568 billion and profit after tax of VND 1,265 billion. Thus, after the first 6 months of the year, Minh Phu has only completed 35% of the revenue plan and 3.6% of the profit plan for the whole year.

Similar to Minh Phu, Nam Viet Joint Stock Company (Navico, code: ANV) recorded consolidated net revenue of VND1,193 billion, up 11% year-on-year. Financial expenses in the period were VND27 billion, down 41% year-on-year, mainly due to a reduction in interest expenses. In contrast, selling expenses recorded an increase of 60% to VND68.7 billion.

In the second quarter of 2024, Nam Viet recorded a sudden increase in other expenses to VND 18.5 billion, while in the same period last year it was only over VND 1 billion. As a result, the company reported a profit after tax of VND 17.5 billion, while in the same period last year it lost VND 51 billion.

Accumulated in the first 6 months of 2024, Nam Viet's net revenue reached VND 2,209 billion, a slight decrease compared to the first half of 2023; profit after tax was VND 34 billion, a decrease of 17% over the same period last year.

Some businesses also recorded positive business results improvement such as: Sao Ta Food Joint Stock Company (Code: FMC), Ben Tre Seafood Import-Export Joint Stock Company (Code: ABT), Sao Mai Group (Code: ASM)... In which, FMC reported a 10% increase in after-tax profit, reaching more than 83 billion VND. ABT reported a nearly 19% increase in profit, reaching 33.7 billion VND. ASM recorded a flat profit compared to the same period, reaching more than 105 billion VND.

Many businesses remain gloomy

In contrast to the positive situation of the above seafood enterprises, Vinh Hoan Joint Stock Company (Code: VHC) recorded consolidated net revenue in the second quarter of 2024 of VND 3,196 billion, up 17% over the same period. However, due to the high cost of goods sold, the company's gross profit decreased by 20% over the same period, to VND 462 billion.

In addition, financial revenue in the period increased by 18%, to VND 117 billion; financial expenses increased by 15%, to VND 57 billion; sales and business management expenses increased by 23%, to VND 141 billion. As a result, "Pangasius Queen" Vinh Hoang reported a profit after tax in the second quarter of 2024 of VND 336 billion, down 26% over the same period.

Explaining the reason for the continued decline in profits in the second quarter of 2024 despite increased revenue, Vinh Hoan said it was due to a decrease in the selling price of pangasius products.

Accumulated in the first half of 2024, Vinh Hoan recorded revenue of VND 6,051 billion, up 22% over the same period, profit after tax of VND 525 billion but net profit only reached VND 484 billion, down 26% over the same period.

Similar to Vinh Hoan, Multinational Investment and Development Joint Stock Company (Code: IDI) - a large enterprise in the pangasius sector also recorded net revenue of VND 1,934 billion, up 6% over the same period last year.

However, due to the sharp increase in cost of goods sold, the company's gross profit decreased slightly to VND 154 billion. In addition, due to high transportation costs and freight rates, the company's selling expenses increased to VND 46 billion, an increase of 42%. As a result, IDI Seafood reported a profit of VND 18 billion, down 31% compared to the second quarter of 2023.

In the first 6 months of the year, IDI recorded net revenue of VND3,564 billion, a slight decrease compared to the same period last year; profit after tax of VND35 billion, a decrease of 20% compared to the same period last year.

Other shrimp seafood companies such as Camimex Group Joint Stock Company (Code: CMX) and Seafood Joint Stock Company No. 4 (Code: TS4) also recorded disappointing results. CMX's after-tax profit in the second quarter decreased by 76%, reaching more than VND6 billion. Meanwhile, TS4 continued to extend its losing streak with a loss of VND1.9 billion in the second quarter.