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.

In the first nine months of 2019, the country's total seafood exports were estimated at nearly $6.3 billion, down slightly by 0.8 per cent against last year. — Photo tinnhanhchungkhoan

The Đồng Tháp Province-based Vĩnh Hoàn Company (VHC), the largest tra fish exporter in Việt Nam, saw post-tax profit drop by 58.3 per cent year-on-year in Q3, reaching VNĐ254 billion (US$10.9 million).

VHC’s net revenue also dropped by 25 per cent against last year, totalling VNĐ1.88 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 $40 million in June to $22 million in September.

In the first nine months, net revenue at VHC decreased by 13 per cent to VNĐ5.69 trillion, while post-tax profit fell by over 5 per cent to VNĐ981 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 31 per cent in gross profit in Q3 to VNĐ249 billion.

MPC’s net revenue totalled VNĐ3.2 trillion, a decrease of 15 per cent year-on-year. Revenue from its financial segment also plummeted 71 per cent to VNĐ24 billion.

The company also saw lower export value in July, August and September, down by 3 per cent, 20 per cent and 34 per cent, respectively.

The company’s revenue from exports to the US plunged 59 per cent in September and 14.3 per cent in the first nine months of this year.

In the first nine months, MPC’s total revenue from exports reached $198 million, down 20.5 per cent over the same period last year and only reaching 57 per cent of the target set for 2019.

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 60 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 VNĐ103 billion, down 54 per cent compared to the same period last year. In the first nine months, the company's revenue increased by 1.7 per cent to VNĐ8.39 trillion but post-tax profit dropped by 10 per cent to VNĐ484 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 44 per cent and 80 per cent in Q3, reaching VNĐ261 billion and VNĐ19 billion, respectively.

In the first three quarters, ACL achieved VNĐ1 trillion in revenue and VNĐ132 billion in post-tax profit, both down by 10 per cent year-on-year.

The last quarter of 2018 was a great period for the pangasius catfish industry as prices climbed sharply. ACL earned a record profit of VNĐ230 billion during that time. However, pangasius prices then gradually fell in the second quarter of 2019, affecting the business of ACL and many other companies.

Mekong Fisheries Joint Stock Company saw revenue rise by 8 per cent in Q3, reaching VNĐ55 billion, but gross profit was down by 31 per cent, touching VNĐ3.3 billion.

In Q3, revenue at Hùng Vương Joint Stock Corporation (HVG) plunged by 64 per cent to VNĐ527 billion, and the company suffered a loss of VNĐ129 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 Q3 is Nam Việt Corporation (ANV).

In Q3, ANV recorded a net revenue of VNĐ1.12 trillion, up 7 per cent compared to 2018. Post-tax profit reached more than VNĐ152 billion, up 34 per cent year-on-year, marking eight consecutive quarters of growth.

ANV has three factories with a capacity of 600 tonnes per day and is working on its Bình Phú project with over 200 ponds of mature fish and 40 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 17 per cent to over 26 per cent, and was striving to reach 35 per cent.

According to the Việt Nam Association of Seafood Exporters and Producers (VASEP), in the first nine months of 2019, the country's total seafood exports were estimated at nearly $6.3 billion, down slightly by 0.8 per cent against last year, of which exports of shrimp and pangasius had dropped by 7 per cent and 8 per cent, respectively.