Agricultural and food businesses increased profits thanks to export recovery

Pangasius processing line at Aquatex Ben Tre - Member of Pan Group. Photo: TL

Export revenue recovered

According to data from the Ministry of Agriculture and Rural Development, agricultural, forestry and fishery export turnover in April reached 5.14 billion USD, an increase of 19.7% compared to April 2023. Specifically, main agricultural product exports reached 2.83 billion USD (up 29.2%), forestry products 1.39 billion USD (up 18.6%), and livestock 40.8 million USD (up 5.9%), production input 157 million USD (up 0.5%). Seafood alone is 730 million USD (down 1.5%). Overall, in the first 4 months, all export commodity groups increased, so export turnover increased, reaching 19.06 billion USD.

Of which, coffee exports had the highest growth rate, reaching 2.5 billion USD, an increase of more than 54% over the same period last year. Next is rice, after 4 months, 3 million tons were exported, with a turnover of 1.93 billion USD, up 13.5% in volume and 23.7% in value over the same period last year. Vietnam's rice exports continue to dominate key markets with large consumption demand for output.

Corresponding to the overall growth of the country, the export situation at enterprises also brought positive results in the first quarter of 2024. Specifically, at PAN Group - a corporation operating in the agricultural sector - food, the shrimp export segment recorded a strong recovery compared to the low base in the same period in 2023. Some main markets, Japan and the US, have a clear return to growth in orders. Accordingly, the shrimp segment's revenue during the period reached 1,460.7 billion VND, an increase of nearly 45% compared to the first quarter of 2023 and profit after tax reached 57.2 billion VND, an increase of 18%.

Revenue of Vinh Hoan Joint Stock Company in March 2024 reached 1,089 billion VND, an increase of 5% over the same period last year. Accumulated in the first 3 months of 2024, Vinh Hoan achieved revenue of 2,811 billion VND, an increase of 25% over the same period in 2023. At G.C Food Joint Stock Company (GC Food) - an enterprise specializing in processing and exporting products from aloe vera, coconut jelly, recorded net revenue growth of 9% in the first quarter of 2024, reaching nearly 119 billion VND. This year, GC Food plans to expand exports to potential markets such as China, India, Indonesia, Malaysia...

Increase processing, improve efficiency

In the coming time, Vietnam's export prospects for many agricultural and food products are forecast to continue to be positive when demand recovers in major markets. Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, said that if we make good use of the opportunity, this year's fruit and vegetable exports will reach 6.5-7 billion USD.

In the field of seafood, an analytical report from VCBS Securities Company points out that, after inventories in the US began to decline sharply from the fourth quarter of 2023, the demand for imported pangasius import demand has shown positive signs with new orders. In addition, Russian pollock will be subject to a 13.7% tax rate by EU countries from the beginning of 2024, and the US has imposed a ban on importing aquatic products originating from Russia from the end of December 2023. Therefore, Vietnamese pangasius has increased advantages in the US and EU markets. Rising prices of Chinese tilapia due to supply shortages also give Vietnamese pangasius a more competitive advantage in the US market.

In addition, China is expected to be Vietnam's key seafood export market when the economy shows positive signs after the Covid-19 epidemic and pangasius demand recovers. Besides, the favorable geographical location helps lower transportation costs compared to other markets. In addition, China's stop importing seafood from Japan will bring opportunities for Vietnam.

Besides positive factors in export activities, businesses themselves also proactively take many solutions to enhance product value and improve production and business efficiency. Typically, in the pangasius export segment of PAN Group, although export output in the first quarter of 2024 is lower than the same period last year (revenue decreased slightly by 1.6%), it is due to the shift to processed products. deep, added value so gross profit margin recorded a sharp increase, profit after tax grew by 22%.

The Group's value-added products such as breaded, sliced, and ready-to-eat have been gradually accepted by export markets, with the advantage of farming areas and 100% control of the value chain. Accordingly, PAN Group will continue to promote investment in machinery and equipment to expand the scale of this segment in the near future.

Meanwhile, PAN Group's confectionery segment is carried out through its member company, Bibica. Bibica has exported a number of strong products such as crackers, hard candy, cookies, to Japan and Korea with very good reception. This has contributed to Bibica achieving 51% growth in revenue and nearly 5 times profit in the first quarter of 2024.

Similarly, at Vinh Hoan Joint Stock Company, while revenue from the main product, pangasius, decreased by 2% and by-products also decreased by 23%, revenue from other mixed products increased by 27%, reaching 176 billion VND; Collagen and gelatin products increased by 43%, reaching 108 billion VND. Notably, revenue of rice products grew strongly by 210%, reaching 34 billion VND.

At Nafoods Joint Stock Company, in the first quarter of 2024, the company's export output of processed fruit products increased by 5% over the same period. However, due to the decrease in the price of input materials, passion fruit, Nafoods' revenue during the period decreased by nearly 23%, at 311 billion VND. However, thanks to continued improvement in supply chain management efficiency, gross profit margin improved, helping profit after tax grow by 2%, reaching 13.6 billion VND.