The business performance reports of most rice enterprises listed on the stock exchange last year all showed a decrease in profits compared to the same period last year. And with the current decrease in rice prices, the business situation of rice enterprises this year is forecast to be even more difficult...
Profits of rice exporting enterprises 'plummet', business is difficult
The business results reports for the fourth quarter of 2024 and the year 2024 of most listed rice enterprises on the stock exchange show a decrease in profits compared to the same period last year. And with the current decrease in rice prices, the business situation of rice enterprises in the first quarter and this year is forecast to be even more difficult.
Although Southern Food Corporation - JSC (Vinafood II; UPCoM: VSF) recorded revenue growth last year, it was also accompanied by pressure from costs, leading to a significant impact on the company's profits.
In the fourth quarter of 2024, Vinafood II recorded revenue of VND 4,955 billion, up 13.5% over the same period, profit after tax was only VND 2.2 billion, down 92.8% over the same period. In particular, gross profit margin decreased from 7.1% to 6.4%.
Explaining the plunge in profits in the last quarter of 2024, Vinafood II said that in the last months of the year, the rice export market and the USD exchange rate fluctuated, affecting the business results of Vinafood II subsidiaries.
With this result, in 2024, Vinafood II recorded revenue of VND 21,460 billion, down 6.8% compared to 2023, and after-tax profit recorded a profit of VND 29.73 billion, down 52.3% compared to the same period last year.
In 2024, Vinafood II plans to have total revenue of VND 17,105 billion and pre-tax profit of VND 105.16 billion. However, at the end of 2024, pre-tax profit reached VND 58.71 billion, Vinafood II did not complete the annual plan and only achieved 55.8% of the plan.
Despite a slight profit in 2024, as of December 31, 2024, Vinafood II still had an accumulated loss of VND 2,789 billion, equal to 55.8% of charter capital.
For Vietnam Seed Group Corporation (Vinaseed, Code: NSC), according to the financial report for the fourth quarter of 2024, Vinaseed's net revenue reached VND969 billion, up 24% over the same period last year. However, the cost of goods sold also increased sharply by 29%, to VND675.7 billion, narrowing the profit margin. Meanwhile, financial revenue remained almost unchanged, but pressure from increased expenses caused net profit to decrease to VND116 billion.
As a result, Vinaseed's after-tax profit in the fourth quarter of 2024 was only VND 93.5 billion, down 14% compared to the same period in 2023. Accumulated for the whole year of 2024, Vinaseed achieved VND 2,448 billion in net revenue, up 20%, but after-tax profit decreased by 2%, to VND 225 billion, showing that cost pressure is clearly affecting business efficiency.
The most tragic is An Giang Import-Export Joint Stock Company (HOSE: AGM). On January 22, AGM received a notice from the Ho Chi Minh City Stock Exchange about the possibility of compulsory delisting. Specifically, HOSE said it received AGM's consolidated financial report for the fourth quarter of 2024. In which, the parent company's accumulated profit after tax was negative VND 251.4 billion, undistributed profit after tax was negative VND 417.3 billion, exceeding the actual contributed charter capital of VND 182 billion, and negative equity of VND 235.3 billion. Therefore, HOSE noted that AGM shares are likely to be subject to compulsory delisting if the audited consolidated financial report for 2024 shows a loss or the total accumulated loss exceeds the actual contributed charter capital or negative equity.
Angimex fell into financial distress and was forced to liquidate a series of assets, including warehouses and capital contributions at affiliated companies. Revenue dropped sharply, equity was negative, while liabilities reached VND1,280 billion.
The business performance of this enterprise began to decline from 2022. In 2022, Angimex lost 233 billion VND after tax; in 2023, it lost 221 billion VND and continued to lose 251 billion VND in 2024. What is alarming is that the enterprise's revenue has decreased sharply, having maintained a level of over 2,000 billion VND for many years, now it is only 241 billion VND.
As of December 31, 2024, Angimex's total assets were VND1,044 billion, down VND193 billion compared to the beginning of the year. Cash was depleted, only VND6 billion left. Most of the assets were in receivables and fixed assets.
Notably, the company's entire assets are formed from loans. Liabilities amount to VND1,280 billion, while negative equity is nearly VND236 billion and accumulated losses reach VND417 billion. Loans alone account for the majority, amounting to VND954 billion.
Two other "giants" in the rice industry, Trung An High-Tech Joint Stock Company (HNX: TAR) and Loc Troi Group Joint Stock Company (UPCoM: LTG), are also struggling with financial difficulties and have not yet been able to announce their financial reports for the fourth quarter of 2024 - a signal of an uncertain future after a series of events.
Trung An is sinking deeper into crisis as profits plummeted from 2022, with a net loss of VND16 billion in 2023 and a further negative VND31 billion in the first 9 months of 2024, mainly due to high production costs and interest rates. Previously, the auditors refused to comment on the 2023 and 2024 half-year financial statements, causing TAR shares to be delisted from the HNX and only traded in limited terms on UPCoM.
Similarly, Loc Troi also repeatedly delayed the announcement of its financial statements citing "force majeure", leading to LTG shares being placed on the restricted trading list on UPCoM. Along with that, the company witnessed continuous turmoil in its senior leadership team, and even the plan to hold an extraordinary General Meeting of Shareholders on December 20, 2024 was postponed due to lack of nomination documents for members of the Supervisory Board.
Regarding business results, according to the financial report for the first quarter of 2024, Loc Troi's revenue showed signs of improvement but gross profit decreased, resulting in a net loss of VND 96 billion. Previously, in 2023, the company's post-audited profit decreased by 96% compared to 2022, to less than VND 17 billion.
Rice export prices remain low, there is nothing new in the output market
Rice prices today, March 4, in the Mekong Delta region fluctuated, market volume was quite good, raw rice of all kinds increased again, fresh rice prices remained stable.
According to the update from the Department of Agriculture and Environment of An Giang province, currently OM 380 raw rice increased by 250 VND/kg, fluctuating at 7,800 - 8,000 VND/kg; OM 18 raw rice increased by 100 VND/kg, fluctuating at 9,300 - 9,500 VND/kg; IR 504 raw rice increased by 8,100 - 8,200 VND/kg; 5451 raw rice fluctuated at 8,500 - 8,600 VND/kg; OM 380 finished rice fluctuated at 8,800 - 9,000 VND/kg; IR 504 finished rice fluctuated at 9,500 - 9,700 VND/kg.
Regarding rice, according to the update from the Department of Agriculture and Environment of An Giang province, the current price of OM 18 rice (fresh) fluctuates at 6,300 - 6,600 VND/kg; Dai Thom 8 rice (fresh) fluctuates at 6,300 - 6,600 VND/kg; OM 5451 rice (fresh) fluctuates at 6,000 VND/kg; IR 50404 rice (fresh) fluctuates at 5,500 - 5,700 VND/kg; OM 380 rice (fresh) fluctuates at 5,000 - 5,200 VND/kg; Nhat rice is at 7,800 - 8,000 VND/kg; Nang Hoa 9 rice is at 9,200 VND/kg.
In the export market, according to the Vietnam Food Association (VFA), currently 5% standard rice is at 393 USD/ton; 25% broken rice is at 367 USD/ton; 100% broken rice is at 310 USD/ton.
Vietnam's 5% broken rice price has increased slightly compared to last week's price but not significantly. Mr. Do Ha Nam - Vice President of Vietnam Food Association, Chairman of the Board of Directors and General Director of Intimex Group said that the export price of rice has not changed much, and there is nothing new in the output market.
The Vietnam Food Association said that the current situation of extremely low rice prices is very worrying. During the years 2016 - 2022, the export price of 5% broken rice from Vietnam always fluctuated at 420 - 535 USD/ton. In 2023, the export price of rice increased sharply due to India stopping rice exports, causing the price of 5% broken rice from Vietnam to reach a 15-year high (since 2008) of 663 USD/ton in November 2023.
At this point, the export price of 5% broken rice stands at 393 USD/ton, down 270 USD, equivalent to 40% compared to the end of 2023. At the current price, the export price of 5% broken rice from Vietnam is at the lowest level among the world's leading rice exporting countries such as Thailand and India, just slightly higher than Pakistan.
The US Department of Agriculture (USDA) forecasts that Vietnam's rice exports in 2025 will only reach 7.5 million tons, down from a record of more than 9 million tons last year. Vietnam's rice exports this year will face challenges due to increased supply from India and Indonesia's efforts to cut imports. If appropriate business solutions are not found soon, rice exporters will have another difficult year this year...
Source: https://danviet.vn/nguon-cung-tang-gia-gao-giam-vinafood-1-va-vinafood-2-kinh-doanh-the-nao-trong-2-thang-dau-nam-20250304144807637.htm
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