Seafood firms’ profits drag on weak exports

HÀ NỘI — Lack of production materials and flagging export value have caused seafood companies to suffer losses in the third quarter of this year.

The Đồng Tháp Province-based Vĩnh Hoàn Company (VHC), the largest tra fish exporter in Việt Nam, saw post-tax profit drop by  五 八. 三 per cent year-on-year in Q 三, reaching VNĐ 二 五 四 billion (US$ 一0. 九 million).

VHC’s net revenue also dropped by  二 五 per cent against last year, totalling VNĐ 一. 八 八 trillion.

The company attributed the sharp fall in profit in the third quarter to the significant decrease in export volume. VHC’s revenue from exports declined from $ 四0 million in June to $ 二 二 million in September.

In the first nine months, net revenue at VHC decreased by  一 三 per cent to VNĐ 五. 六 九 trillion, while post-tax profit fell by over  五 per cent to VNĐ 九 八 一 billion.

Minh Phú Seafood Joint Stock Company (MPC), one of the world’s biggest shrimp firms involved in farming, processing to sales, also experienced a plunge of  三 一 per cent in gross profit in Q 三 to VNĐ 二 四 九 billion.

MPC’s net revenue totalled VNĐ 三. 二 trillion, a decrease of  一 五 per cent year-on-year. Revenue from its financial segment also plu妹妹eted  七 一 per cent to VNĐ 二 四 billion.

The company also saw lower export value in July, August and September, down by  三 per cent,  二0 per cent and  三 四 per cent, respectively.

The company’s revenue from exports to the US plunged  五 九 per cent in September and  一 四. 三 per cent in the first nine months of this year.

In the first nine months, MPC’s total revenue from exports reached $ 一 九 八 million, down  二0. 五 per cent over the same period last year and only reaching  五 七 per cent of the target set for  二0 一 九.

Minh Phú said that since July, due to prolonged heavy rains, the amount of shrimp fingerlings in Việt Nam had declined significantly, so the company had been unable to meet customer demand.

In August, MPC's inventories fell by more than  六0 per cent and there were fewer products to export, forcing the firm to stop taking orders for the remainder of the year.

As a result, Minh Phú's third-quarter post-tax profit was only VNĐ 一0 三 billion, down  五 四 per cent compared to the same period last year. In the first nine months, the company's revenue increased by  一. 七 per cent to VNĐ 八. 三 九 trillion but post-tax profit dropped by  一0 per cent to VNĐ 四 八 四 billion.

Currently, the company is trying to complete its Lộc An hi-tech farming area in order to be able to meet demand in the years to come.

Cửu Long Fish Joint Stock Company (ACL) witnessed revenue and post-tax profit down by  四 四 per cent and  八0 per cent in Q 三, reaching VNĐ 二 六 一 billion and VNĐ 一 九 billion, respectively.

In the first three quarters, ACL achieved VNĐ 一 trillion in revenue and VNĐ 一 三 二 billion in post-tax profit, both down by  一0 per cent year-on-year.

The last quarter of  二0 一 八 was a great period for the pangasius catfish industry as prices climbed sharply. ACL earned a record profit of VNĐ 二 三0 billion during that time. However, pangasius prices then gradually fell in the second quarter of  二0 一 九, affecting the business of ACL and many other companies.

Mekong Fisheries Joint Stock Company saw revenue rise by  八 per cent in Q 三, reaching VNĐ 五 五 billion, but gross profit was down by  三 一 per cent, touching VNĐ 三. 三 billion.

In Q 三, revenue at Hùng Vương Joint Stock Corporation (HVG) plunged by  六 四 per cent to VNĐ 五 二 七 billion, and the company suffered a loss of VNĐ 一 二 九 billion.

HVG attributed the drop in revenue to its divestment from Việt Thắng Feed JSC that cut its revenue from the sale of animal feed.

One of the few seafood processors to report higher profit in Q 三 is Nam Việt Corporation (ANV).

In Q 三, ANV recorded a net revenue of VNĐ 一. 一 二 trillion, up  七 per cent compared to  二0 一 八. Post-tax profit reached more than VNĐ 一 五 二 billion, up  三 四 per cent year-on-year, marking eight consecutive quarters of growth.

ANV has three factories with a capacity of  六00 tonnes per day and is working on its Bình Phú project with over  二00 ponds of mature fish and  四0 ponds of fingerlings.

ANV's export markets are quite diverse, including the US, Mexico, Brazil, the EU, China and Southeast Asia.

Nguyễn Duy Nhựt, deputy chairman of the board of directors cum deputy general director, said the company had increased its market share of pangasius exports in China from  一 七 per cent to over  二 六 per cent, and was striving to reach  三 五 per cent.

According to the Việt Nam Association of Seafood Exporters and Producers (VASEP), in the first nine months of  二0 一 九, the country's total seafood exports were estimated at nearly $ 六. 三 billion, down slightly by 0. 八 per cent against last year, of which exports of shrimp and pangasius had dropped by  七 per cent and  八 per cent, respectively. — VNS