In August 2024, Sao Ta Food Joint Stock Company (stock code FMC)'s revenue reached 30.38 million USD, up nearly 36% over the same period. Sao Ta said that production and consumption of finished shrimp products in August increased by 74% and 36% respectively over the same period last year.
Sao Ta's sales reached nearly 160 million USD after 8 months
Sao Ta Food Joint Stock Company (stock code FMC - HoSE) said that the company's revenue in August 2024 reached 30.38 million USD, up nearly 36% over the same period. Of which, finished shrimp production reached 3,450 tons, up 74% over the same period.
Sao Ta Foods said the impressive growth results came from the fact that the company had signed many contracts, so processing activities were enhanced to ensure on-time delivery. Accordingly, the output of finished shrimp products reached 2,726 tons, an increase of 36% compared to August 2023.
Meanwhile, finished agricultural product production decreased by 42% year-on-year to 44 tons. Finished agricultural product consumption output was 116 tons, up 37% year-on-year.
Accumulated from the beginning of the year until now, Sao Ta's sales are estimated at 156.6 million USD. In 2024, the company plans to have sales of 210 million USD. With the above results, the company has achieved 75% of the set target.
Sao Ta said that as of August, the company's farms had completed shrimp harvesting and were renovating ponds to prepare for a new crop when the weather returned to be favorable.
Sao Ta (FMC) signed many new contracts in August, sales increased by 36%
In 2024, Sao Ta Food also determined that this will be another difficult year for the shrimp industry. In this situation, in addition to focusing on important markets, Sao Ta Food will continue to develop deeply processed shrimp products.
Sao Ta Food has built a business plan this year with a target of net revenue of VND 5,187 billion and consolidated profit before tax of VND 320 billion, up 2% and 5% respectively compared to the actual level in 2023. The company's processed shrimp output in 2024 is expected to reach 22,300 tons, up 5.2% compared to the 21,198 tons recorded last year.
The second half of the year is "easier", will Sao Ta's revenue and profit have a sudden change?
In fact, there is still reason to expect that Sao Ta Food's business results in the last 6 months of the year will increase dramatically in both revenue and profit.
Seafood exports, especially shrimp, are still on the path to recovery. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in August 2024, seafood exports continued to recover with a growth rate of 20%, reaching nearly 953 million USD. In the first 8 months of the year, seafood exports reached nearly 6.3 billion USD, up nearly 9% over the same period last year.
Shrimp exports by the end of August reached nearly 2.4 billion USD, up 9% over the same period last year, of which whiteleg shrimp reached about 1.75 billion USD, up 8%, while black tiger shrimp exports were still 7% lower than the same period, reaching nearly 290 million USD. Lobster alone maintained good growth momentum in August, so the export turnover in the first 8 months of the year was 140% higher than the same period in 2023.
Recently, shrimp export processing facilities have signed many contracts to have work for the whole year, and at the same time, to minimize risks, the stockpiling of raw materials when prices are low has been quite favorable in July and August, Mr. Ho Quoc Luc, Chairman of Sao Ta Board of Directors shared.
According to Mr. Luc, there is only one risk that Sao Ta in particular and units in the seafood industry in general are still facing, which is the issue of trade protection, related to anti-dumping (AD) and anti-subsidy (CVD) lawsuits in the United States.
Previously, at the 2024 Annual General Meeting of Shareholders, when sharing with shareholders about the CVD lawsuit in the shrimp industry from the US market, Sao Ta's board of directors assessed that this was a complicated and unprecedented issue. Therefore, "in the immediate future, the company will focus on selling to the US items that are not subject to tax or items that are subject to tax but are sold at good prices."
According to Sao Ta's leader, the US CVD rate for Vietnamese shrimp is still lower than other countries, however, this is a preliminary announcement, the final tax rate is expected to be finalized in the near future. If Vietnam's final CVD rate is still lower than other countries, this is an advantage for Vietnamese shrimp.
The subject of anti-subsidy tax is similar to anti-dumping activities, in which breaded shrimp and fried shrimp are not subject to tax.
According to the schedule, on October 19, 2024, DOC is expected to announce the final CVD tax rate and before December 3, 2024, the US International Trade Commission (ITC) will conclude whether this lawsuit will end or continue.
In fact, there is still reason to expect that Sao Ta Food's business results in the last 6 months of the year will increase dramatically in both revenue and profit.
Mr. Ho Quoc Luc also said that although there are still some difficulties, in general, the second half of 2024 is still an "easy period".
According to a recent assessment by Rong Viet Securities, Sao Ta Food's shrimp selling price in the second half of this year is expected to increase by 9% compared to the same period last year. Notably, with a market share of 34% of Vietnam's shrimp exports to Japan, Sao Ta is expected to benefit from the appreciation of the Yen in the second half of this year.
Source: https://danviet.vn/nua-cuoi-nam-de-tho-hon-doanh-thu-va-loi-nhuan-cua-thuc-pham-sao-ta-co-dot-bien-20240904162845695.htm
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