Pangasius processing line for export at the factory of Southern Seafood Industry Co., Ltd. Illustration: Vu Sinh/VNA
In fact, after many years of profitable business, seafood businesses have suffered losses. Anticipating challenges, many businesses plan to reduce profits in 2023 compared to last year.
Faced with the above situation, the Prime Minister and management agencies also had a meeting to discuss and propose solutions to solve difficulties for seafood enterprises.
Minh Phu Seafood Group Joint Stock Company - the leading shrimp exporter in Vietnam is a typical example. In the first quarter of 2023, the business recorded a net loss of 97 billion dong, while in the first quarter of 2022, a net profit of 90 billion dong. The business's loss in the first quarter of this year was due to a 75% drop in gross profit. With this result, Minh Phu officially recorded a loss after nearly 7 consecutive years of profit (the last loss was in the second quarter of 2016).
In 2023, the leading shrimp producer set an output target of 45.000 tons, export value reaching 540 million USD. Specifically, "shrimp king" Minh Phu set a revenue target of 12.789,5 billion VND, down 22% compared to 2022; profit after tax reached 639,3 billion dong, down 23% over the same period.
Vinh Hoan Joint Stock Company (stock code: VHC) - the leading pangasius enterprise also saw a sharp decrease in revenue and profit in the first quarter of 2023 compared to the same period last year. Specifically, the revenue of the first quarter of 2023 of the "queen of pangasius" reached VND 2.221 billion, down 32% over the same period. Vinh Hoan earned nearly VND 219 billion in profit after tax in the first quarter of 2023, down 60% compared to the same period last year.
Recognizing that there will be many difficulties to face, in 2023, Vinh Hoan sets a revenue target of 11.500 billion VND, down 13,1% compared to 2022; profit after tax is 1.000 billion dong, down 49,4% compared to the implementation in 2022.
Next, Nam Viet Joint Stock Company (Nam Viet Seafood – stock code: ANV) - a large enterprise in the seafood sector, recorded net revenue of VND 1.155 billion, down 5% compared to the same period last year. . Profit after tax of Nam Viet Seafood in the first quarter of 2023 was only VND 92,4 billion, down 55% over the same period last year.
In 2023, Nam Viet Seafood sets a total revenue of 5.200 billion dong and pre-tax profit of 500 billion dong. Thus, the company's planned revenue in 2023 increased by 6% compared to the implementation in 2022, but planned profit before tax decreased by 35%.
The fact that seafood enterprises have negative business results is understandable due to the serious decline in consumption in the main export markets.
According to the Ministry of Agriculture and Rural Development, in the first 5 months of 2023, many key export items had a decrease in export value compared to the same period last year; in which, seafood export reached nearly 3,4 billion USD, down 28% over the same period in 2022. Many seafood products fell deeply such as: pangasius export only reached 690 million USD, down 40,7% ; shrimp exports reached 1,22 billion USD, down 34,4%…
According to analyst Nguyen Thi Thanh Hang, VNDIRECT Securities Joint Stock Company (VNDIRECT), the export value of key seafood products dropped sharply because the main market demand was heavily affected by high inflation. , the economic recession caused both export volume and average selling price to decrease.
2022 is considered a successful year for the seafood industry with the total revenue and net profit of listed seafood companies increasing by 29% and 86% respectively thanks to the increased demand in the US market after the pandemic. pandemic.
But entering 2023, business results of businesses turned negative. According to estimates of VNDIRECR, the first quarter of 2023 business results of listed seafood companies decreased significantly, with revenue of seafood export companies decreasing by 32% compared to the same period in 2022.
Most companies' gross profit margin decreased, especially pangasius exporters when the average selling price of fish fell sharply by 12% over the same period last year. Therefore, the net profit of listed seafood enterprises recorded a decrease of 74% compared to the same period in 2022.
Pangasius exporters experienced a sharp decline in business results due to a high base level in the first quarter of 2022 when the demand of the US market increased sharply, along with importers increasing orders to offset the volume of goods. inventory shortage.
Leading pangasius exporters such as Vinh Hoan Joint Stock Company or Nam Viet Joint Stock Company (stock code: ANV) said that although pangasius is considered an affordable food item for consumers, but also inevitably the negative impact of economic recession and high inflation weakening purchasing power.
Meanwhile, production input costs such as raw fish or fish feed have all decreased much more than the decline in average selling prices, along with interest costs in a high interest rate environment have "saved". erode” the profits of companies.
Due to weak demand from major export markets and high production costs, listed seafood exporters in the industry, especially pangasius businesses, have set business plans more cautiously than those in the industry. with the year 2022.
Most businesses have set a revenue plan of 2023 greater than, or equal to, revenue in 2022, but profit will decrease significantly in 2023. This shows that businesses expect gross profit to decrease, despite selling price. The average of products can remain high due to inflation.
Meanwhile, shrimp exporters are somewhat more optimistic about their business results in 2023 when they expect both revenue and profit to increase over the same period. However, with challenges in 2023, an analyst from VNDIRECT Securities Joint Stock Company (VNDIRECT), Ms. Nguyen Thi Thanh Hang, said that this plan of businesses is quite ambitious.
“With demand from the main export markets still being affected, we believe that most seafood exporters will record negative net profit growth in 2023 as gross margin declines. and the high base level of 2022", Ms. Hang said.
According to the Ministry of Agriculture and Rural Development, seafood exports decreased because this is a commodity that is greatly affected by world market demand.
Seafood exports decreased due to the world economy continuing to face many difficulties and high inflation in some developed countries. Tight monetary policies, especially in major markets such as the US and Europe, make it difficult for businesses to sign and fulfill orders.
Many countries have implemented policies to strengthen the protection of domestically produced products and goods; to boost agricultural production to proactively supply the export of agricultural products; in which Vietnam's seafood is facing many difficulties.
According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, in order to ensure the target of the 2023 plan on fisheries, the agricultural sector will promptly direct aquaculture production in the face of changes in weather and demand. market demand. At the same time, continue to coordinate with localities to strictly implement solutions to combat illegal fishing.
All stages from seed, cultivation process, care, veterinary medicine to preliminary processing, packaging ... must be smooth in order to improve the competitiveness of Vietnamese agricultural products and overcome immediate and long-term difficulties. so that Vietnam has ecological agriculture, modern countryside and civilized farmers.
In mid-April 4, Prime Minister Pham Minh Chinh also chaired the Prime Minister's Meeting to work with the Association of Timber and Forest Products; Association of Seafood Exporters and Producers to remove difficulties and promote production and export of forest and aquatic products.
The Prime Minister emphasized that the production, processing and export of forest and fishery products continue to face opportunities, advantages and difficulties, and challenges are intertwined, but more challenging.
The Prime Minister requested functional sectors to focus on solving difficulties for businesses in implementing policies related to VAT refund; promote trade promotion, especially in large and emerging markets. At the same time, strengthen the inspection of law enforcement, ensuring the effective implementation of the traceability of aquatic products; remove difficulties for seafood enterprises related to regulations on aquatic product processing wastewater and aquaculture pond wastewater ...
