Business plan expected to decrease, Fami Canxi milk found to be contaminated in Japan
In early April, the case of 25 cartons of Vinasoy - Fami Canxi Soy Milk being recalled in Japan due to bacterial contamination during transportation caused a stir in public opinion. Accordingly, this batch of soy milk was imported on March 6, and on March 27, the Osaka Quarantine Station of the Japanese Ministry of Health , Labor and Welfare conducted an inspection and discovered that the milk product tested positive for Coliform bacteria.
On the evening of April 3, 2023, Vinasoy provided feedback on the incident. Accordingly, the company said that the National Institute for Food Safety and Hygiene Control had just returned negative test results for the control sample of the recalled Fami Canxi soy milk batch in Chiba City, Japan.
In addition, Vinasoy determined that the Coliforms contamination of 25 cartons of Fami Canxi soy milk in Chiba city - Japan only occurred individually during transportation and circulation.
For a food company, the above incident will have a significant impact on the direct revenue of its products in the Japanese market, and in the long term will also have a significant impact on the business situation of the company that owns the brand name Quang Ngai Sugar (QNS) in the domestic market.
According to the documents of the 2023 Annual General Meeting of Shareholders, Quang Ngai Sugar has set a projected revenue plan of only VND 8,400 billion, down about 2% compared to 2022. The planned profit after tax is also only VND 1,008 billion, 22% lower than the actual in 2022.
Comparing back to the annual revenue plan, it can be seen that Quang Ngai Sugar's 2023 revenue plan is at its lowest level since 2014. This also partly shows the company's own forecast for the difficult business situation in the coming time.
Regarding the business situation in the most recent year 2022, Quang Ngai Sugar recorded revenue in the fourth quarter at VND 1,947.9 billion, an increase of 24.9% over the same period in 2021. Cost of goods sold also increased from VND 1,059 billion to VND 1,360.4 billion. Gross profit from sales and service provision reached VND 587.4 billion, an increase of 17.4%. Profit after tax in the fourth quarter reached VND 426.8 billion, an increase of 11.1% over the fourth quarter of 2021.
Despite the breakthrough in the fourth quarter, the decline in business performance in the first three quarters of 2022 has dragged Quang Ngai Sugar's full-year results down very low. Revenue for the whole year of 2022 reached only VND 8,322.7 billion, up 12.9% compared to 2021. Profit remained almost flat at only VND 1,284.5 billion, not much fluctuation compared to the same period.
It can be seen that with the forecast of not-so-bright business results in 2023, the case of Fami milk being recalled due to bacterial contamination in Japan will simultaneously make Duong Quang Ngai's business picture this year even more gloomy than ever. It is worth mentioning that before the upcoming storm, Duong Quang Ngai still decided to spend 535 billion VND to pay additional dividends to existing shareholders, while continuing to plan to issue ESOP shares to its employees.
Forecasting a record low profit in the past 9 years, the owner of Fami Milk brand still pays "heavy" dividends and issues ESOP to employees.
Quang Ngai Sugar Joint Stock Company (code QNS) has announced that the record date for shareholders to receive the remaining dividend in 2022 is April 18, 2023. The remaining dividend will be paid in cash at a rate of 15%. Equivalent to each shareholder owning 1 share will receive 1,500 VND.
Currently, there are 357 million shares of Quang Ngai Sugar in circulation on the market. Thus, it is estimated that the company will have to spend about 535 billion VND for this dividend payment. The expected payment date is April 27, 2023.
Quang Ngai Sugar (QNS) recorded the lowest business plan in 2023 in the past 9 years, still planning to spend 535 billion VND to pay dividends (Photo TL)
In 2022, Quang Ngai Sugar Joint Stock Company has paid dividends to shareholders twice with a total dividend payment rate of 15%. If this dividend payment is included, Quang Ngai Sugar will pay a total dividend at a rate of 30%.
Regarding the dividend payment plan for 2023, Quang Ngai Sugar announced a minimum dividend payment rate of 15%, halved compared to the dividend payment for 2022.
In addition to paying dividends, Quang Ngai Sugar also presented shareholders with a plan to issue ESOP shares to employees with 3 options based on the achieved results.
Option 1 will have an issuance rate of 1%, corresponding to the issuance of 3.57 million shares if the capital growth rate in 2023 compared to 2022 increases from 7.5% to less than 15%.
Option 2 will have an issuance rate of 2% of outstanding shares, equivalent to 7.14 million shares if the company's capital growth rate in 2023 compared to 2022 increases from 15% to less than 20%.
If the company's capital growth rate in 2023 compared to 2022 increases by 20% or more, the issuance ratio will be equal to 3% of the total outstanding shares.
Quang Ngai Road under tax inspection
Recently, the Quang Ngai Provincial Tax Department also issued a decision to inspect Quang Ngai Sugar Joint Stock Company on value added tax, corporate income tax, special consumption tax, personal income tax (excluding the inspection of related party transaction prices) at the company's office and affiliated units including: Vinasoy Vietnam Soymilk Factory; Vinasoy Binh Duong Soymilk Factory; An Khe Biomass Power Plant; Dung Quat Brewery.
In addition, Quang Ngai Road was also inspected for the payment of social insurance, unemployment insurance, health insurance, medical examination and treatment, payment of medical examination and treatment costs under health insurance, and issuance of certificates of leave for social insurance at the Health Station from January 1, 2022 to December 31, 2022.
Regarding stock price movements, on April 6, 2023, QNS stock price was recorded at VND 42,400/share, up nearly 25% compared to the bottom set in early 2023. However, it has not yet recovered to the price of VND 50,000/share achieved 1 year ago.
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