Vinh Hoan (VHC) export revenue in October continued to decline

October revenue continues to be gloomy as exports to the US market drop 59%

Vinh Hoan Corporation (VHC) has just announced its business situation in October with a record of continued decline in seafood export revenue, showing that the year-end business picture has not significantly improved.

October revenue reached VND445 billion, down 26% year-on-year. Of which, tra fish products saw a 26% decrease in revenue compared to the same period. By-products decreased by 53%, health products decreased by 24%, and value-added products decreased by 24%. On the contrary, shrimp chips increased by 18%, noodles and rice paper increased by 32% compared to the same period.

Vinh Hoan (VHC) export revenue to the US market decreased by 59% in October (Photo TL)

VHC explained that the reason for the decline in revenue was due to a sharp decline in export output in some markets. For example, in the US market, exports decreased by 59% compared to the same period last year. Consumption in the domestic market also decreased by 14% compared to the previous month. In return, the Chinese and European markets recorded an increase in exports of 43% and 20% respectively.

Profit in the first 9 months of the year decreased by 51%, Vinh Hoan is behind schedule for the year

In the previously announced Q3/2023 financial statements, VHC recorded accumulated revenue of VND 7,642 billion, down 29% year-on-year. Profit after tax reached VND 883 billion, down 51% year-on-year.

Including October revenue, VHC currently has a cumulative revenue of VND 8,087 billion. Compared to the 2023 revenue plan of VND 11,500 billion, after 10 months, VHC has only completed 70% of the target. Thus, VHC is behind the set revenue target.

However, with the profit results, VHC is still completing 88% of the year's target after 9 months.

Regarding asset structure, by the end of the third quarter of 2023, VHC's total assets reached VND 12,366 billion, up 6.7% compared to the beginning of the year. Liabilities accounted for VND 3,902 billion, unchanged from the beginning of the year. Most of which was short-term debt, accounting for more than 96% of the debt structure.

The cash flow statement shows that VHC's net cash flow from operating activities at the end of the third quarter was negative VND231 billion. This shows that cash from operating activities is not enough to cover the amount of cash spent. Cash flow from investing activities also recorded a negative VND235 billion.

Source: https://www.congluan.vn/vinh-hoan-vhc-loi-nhuan-giam-51-doanh-thu-xuat-khau-thang-10-am-dam-post272872.html