Vĩnh Hoàn suffers 6th consecutive month of sales decline, mostly in foreign markets

July 21, 2023 - 15:46
Vĩnh Hoàn Corporation disclosed June revenue dropped 11 per cent mon-on-month to VNĐ 846 billion (US$35.7 million), marking the 6th consecutive month of declining sales.
Workers process tra fish in Vĩnh Hoàn's factory. Vĩnh Hoàn's six-month revenue dropped 34 per cent year-on-year. — Photo congthuong.vn

HÀ NỘI — Vĩnh Hoàn Corporation (VHC) disclosed June revenue dropped 11 per cent month-on-month to VNĐ846 billion (US$35.7 million), which marked the 6th consecutive month where revenue experienced a double-digit decrease compared to the same period last year.

Over the initial half of the year, its accumulated revenue amounted to VNĐ4.9 trillion, registering a significant 34 per cent decline year-on-year and completing just 43 per cent of the target set for the whole year.

Regarding the revenue structure, the pangasius segment experienced a persistent decline, plunging by 22 per cent to VNĐ475 billion, accounting for 56 per cent of the company's total revenue. Additionally, by-products, healthcare products and value-added items also saw reductions of 43 per cent, 42 per cent and 15 per cent, respectively.

Conversely, the segment comprising shrimp crackers, rice vermicelli and other products exhibited growth in the double to triple digits, albeit with a relatively modest contribution to the overall revenue.

In terms of market performance, revenue from the EU, US and China all faced double-digit declines. In contrast, the home turf market emerged as the primary revenue generator for Vĩnh Hòan in June, bringing in VNĐ267 billion. Moreover, the domestic market displayed a positive trend, recording a 6 per cent increase compared to the same period.

The Vietnam Association of Seafood Exporters and Producers (VASEP) reported seafood exports in June 2023 reached just $800 million, down 21 per cent year-on-year. Specifically, pangasius exports were estimated at $156 million, indicating a decrease of 26 per cent. The accumulated pangasius export figures for the first six months of the year reached over $885 million, down 38 per cent year-on-year.

In its company report, VNDirect Securities JSC anticipated that Vĩnh Hoàn may encounter challenges in sustaining the growth momentum of both revenue and net profit this year. The decrease in both volume and average selling price can be attributed to market demand constraints, particularly in VHC's key markets such as the US and EU, which may face significant impacts from high inflation.

According to the company’s management, orders in the third quarter are gradually improving. VASEP also forecasts that Việt Nam's seafood export activity will gradually recover in the second half of this year when key markets enter the festive season. 

On the Hồ Chí Minh Stock Exchange, VHC’s shares traded at VNĐ74,700 per share on Thursday. — VNS