Sao Ta's sales reached 95 million USD in 6 months
Sao Ta Food Joint Stock Company (Code: FMC) announced on July 1 that its sales in the first 6 months of the year reached 95 million USD, up 17% over the same period, achieving 45% of the yearly plan (210 million USD).
In June alone, Sao Ta's sales were estimated at 13.46 million USD, down 28% year-on-year. This was also the month with the company's lowest sales in 4 months.
In the first half of this year, Sao Ta said that processed shrimp products reached 11,255 tons, up 20% over the same period. Processed shrimp consumption reached 8,449 tons, up 26% over the same period.
Regarding agricultural products, agricultural products produced 705 tons, agricultural products consumed 626 tons, down 27% and 11% respectively compared to the first 6 months of 2023.
Sao Ta Food Joint Stock Company (Code: FMC) has just announced that its sales in the first 6 months of the year reached 95 million USD, an increase of 17% over the same period, achieving 45% of the yearly plan (210 million USD).
Sao Ta said that in the first 6 months of the year, the output of processed shrimp and consumption increased thanks in part to self-farmed shrimp and stable consumption contracts. Sales increased less than consumption output due to smaller shrimp sizes and lower unit prices compared to the same period last year.
Regarding farming, Sao Ta said that the main farming area is in the process of harvesting and will last until the end of August, after which the company will release the next crop. Sao Ta assessed that this crop has good productivity but the price of commercial shrimp is low.
Sao Ta maintains a cautious view on business prospects this year.
In 2024, Sao Ta Food identifies 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.
Specifically, the completion of the Tam An and Sao Ta 2 factories is forecast to help the company increase its deep-processed shrimp output by 26% compared to 2023 this year, along with the expectation that shrimp prices will gradually warm up from the second half of 2024, which will help Sao Ta Food's profit margin improve by 0.1% over the same period. Specifically, the total design capacity of the two new factories is 20,000 tons/day, of which the Tam An and Sao Ta 2 factories have been operating at 20% and 2%, respectively.
Sao Ta Food's Board of Directors is maintaining a cautious view on this year's business prospects and expects the difficulties for the shrimp industry to last, amid risks from the US anti-subsidy lawsuit against the shrimp industry, as well as limited domestic shrimp supply due to farmers limiting farming.
In 2024, Sao Ta Food plans to produce 22,300 tons of processed shrimp and 1,500 tons of processed agricultural products.
On March 25, the US Department of Commerce (DOC) issued a preliminary conclusion in the anti-subsidy investigation of frozen warmwater shrimp (HS codes: 0306.17, 1605.21 and 1605.29) originating from Vietnam. DOC has set the preliminary anti-subsidy tax rate for Vietnamese enterprises as follows: 2.84% for the only mandatory defendant enterprise and for all remaining enterprises; 196.41% for the only defendant enterprise not participating in the case.
This will cause more difficulties for Vietnamese shrimp products in the US market, which is facing fierce competition from cheap shrimp products from Ecuador and India.
Sao Ta Food's management board said that they have prepared the best documents to explain to the DOC if requested. At the same time, the company will submit an application to the DOC to be a mandatory defendant in the anti-subsidy lawsuit to ensure the company's safety and welcome the US Government's inspection team to inspect the Tin An Factory.
Currently, Sao Ta Food is building 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 of 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.
This year, Sao Ta Food will continue to focus on deeply processed products, to optimize costs and increase productivity by specializing products in each factory and improving the quality of the workforce to achieve the set business goals.
Source: https://danviet.vn/sao-ta-tang-17-doanh-so-trong-nua-dau-nam-2024-lo-ngai-kinh-doanh-nam-nay-kho-chong-kho-20240701214139784.htm
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