Vinh Hoan (VHC) November revenue decreased but still spent 20 billion on raw materials

The decline in seafood exports to the US market has caused Vinh Hoan’s (VHC) revenue to continuously decline. However, the decline has shown signs of slowing down as November revenue only recorded a slight decrease of 3% compared to the same period last year.

Specifically, in November 2023, Vinh Hoan achieved revenue of VND855 billion, down 3% over the same period last year. Of which, export revenue in many markets showed signs of decline. In the US, export revenue decreased by 41% over the same period. The Chinese market decreased slightly by 3% to VND61 billion. In return, the domestic and European markets increased by 44% and 14%, respectively, reaching VND325 billion and VND124 billion.

Vinh Hoan VHC November revenue decreased by 3% but only 20 billion VND to expand raw material area image 1 — Vinh Hoan (VHC) November revenue decreased by 3%, still spending 20 billion to expand raw material area (Photo TL)

In the revenue structure, pangasius, which plays a key role, decreased by 22% to 376 billion VND. By-products decreased by 43% to only 116 billion VND. In return, health care products increased by 33% to 83 billion VND. Other products such as shrimp crackers, vermicelli, and rice cakes all increased in revenue.

Recently, Vinh Hoan also planned to spend tens of billions of VND to expand the raw material farming area. On December 14, 2023, Vinh Hoan's Board of Directors agreed to accept the transfer of aquaculture land use rights in Nhon My commune, Long Giang commune, Cho Moi district, An Giang province with a total area of nearly 108,900 m2. The total amount of money VHC spent to receive the transfer of this land lot is 20.5 billion VND.

The expansion of the raw material area comes amid VHC’s continued decline in revenue and profit. In the previous Q3, the company recorded cumulative revenue of VND7,642 billion, down 29%. Profit after tax reached VND883 billion, down 51% over the same period.

Source