Raising the ratio from 100% to 200%, Son La Sugarcane pays record dividends

Son La Sugar raises cash dividend rate from 100% to 200%

Son La Sugarcane Joint Stock Company (stock code: SLS) announced the minutes of the 2023-2024 annual general meeting of shareholders with the shareholders approving the dividend rate for the past fiscal year of 200% in cash. Thus, the company will spend nearly 196 billion VND to pay the above dividend.

Previously, the company's Board of Directors proposed 100% in cash. However, after discussion, Son La Sugarcane raised the dividend to 200%.

The annual general meeting of shareholders of Son La Sugarcane approved a cash dividend of 200% for the past fiscal year, double the previous proposal of 100%.

Son La Sugarcane is one of the enterprises with a tradition of paying cash dividends at a high rate.

Previously, Son La Sugar recorded a new record high net profit for the 2023/2024 fiscal year as domestic sugar prices continued to remain high despite a decline in world sugar prices.

The financial report for the fourth quarter of the 2023-2024 fiscal year (from April 1, 2024 to June 30, 2024) shows that Son La Sugarcane had net revenue of VND 551 billion, unchanged from the same period last year. Profit after tax in the period increased by 5%, reaching VND 235 billion.

Accumulated for the whole fiscal year 2023 - 2024, Son La Sugarcane's revenue reached 1,412 billion VND, down 15.6% over the same period last year. However, thanks to a significant reduction in cost of goods sold, the company's after-tax profit increased by 1.7%, reaching 532 billion VND. This is also the highest net profit of Son La Sugarcane ever, breaking the record set in the previous fiscal year.

Accumulated for the whole fiscal year 2023 - 2024, Son La Sugarcane's revenue reached 1,412 billion VND, down 15.6% over the same period last year. However, thanks to a significant reduction in cost of goods sold, the company's after-tax profit increased slightly by 1.7%, reaching 532 billion VND.

In the 2023-2024 fiscal year, Son La Sugarcane targets net revenue of VND 1,045.5 billion and after-tax profit of VND 137 billion, down 38% and 74% respectively compared to the results achieved in the previous fiscal year. Thus, after 4 quarters, the company has completed 135% of the revenue plan and 388% of the profit plan for the whole fiscal year.

On the balance sheet, Son La Sugarcane's total assets as of June 30, 2024 reached VND 1,695 billion, an increase of 26% compared to the beginning of the fiscal year. Of which, short-term receivables from customers reached VND 539 billion, 3.5 times higher than the figure recorded at the beginning of the period; inventory value reached VND 430 billion, an increase of 32.5%.

On the counterpart side, Son La Sugar's payable debt as of the end of the fourth quarter of the 2023-2024 fiscal year reached VND 141 billion, mainly short-term debt (VND 61.7 billion).

Worry about production and consumption difficulties in the new crop year

Son La Sugarcane Joint Stock Company, formerly known as Son La Sugar Factory, is under the management of To Hieu Son La State Farm, and was started construction on September 16, 1995. Son La Sugarcane is currently a medium-sized enterprise in the Vietnamese sugarcane industry with a production capacity of about 60,000 tons of sugar per year. Currently, this enterprise has 9,000 hectares of raw materials in Yen Chau, Son La. In particular, the growing area of ​​Son La Sugarcane has favorable soil and weather conditions for sugarcane with high sugar reserves.

On the stock exchange, Son La Sugarcane is one of the enterprises with a tradition of paying cash dividends at a high rate. In the last three fiscal years, the company has paid dividends of over 100%. In 2023, this enterprise paid 2022 dividends at 150% in cash, corresponding to shareholders owning 01 share will receive 15,000 VND in dividends.

Son La Sugarcane is currently a medium-sized enterprise in the Vietnamese sugarcane industry with the capacity to produce about 60,000 tons of sugar/year.

In the 2024-2025 fiscal year business plan (July 1, 2024 - June 30, 2025), the company targets VND 1,097 billion in revenue and VND 150 billion in profit after tax, down 22% and 71% respectively over the same period.

Regarding the business plan for the 2024-2025 fiscal year (July 1, 2024 - June 30, 2025), the company sets a target of VND 1,097 billion in revenue and VND 150 billion in profit after tax, down 22% and 71% respectively over the same period.

Explaining the low target, Son La Sugarcane's leader said that in 2024, the company will face many difficulties as the world and domestic economies have not fully recovered, causing purchasing power to decrease.

Besides, climate change, drought, heat and floods in Son La are extremely severe, seriously affecting the development of sugarcane area, productivity and output.

In addition, fierce competition with other crops has led to Son La Sugarcane's sugarcane growing area being pushed further and further away from the factory to particularly difficult areas.

Smuggling and commercial fraud of sugar products have not been thoroughly controlled, causing sugar prices to fall and consumption to face many difficulties...

Source: https://danviet.vn/nang-ty-le-tu-100-len-200-mia-duong-son-la-tra-muc-co-tuc-ky-luc-2024091121253845.htm