Aloe 'King' plans to double profits

This year, GC Food plans to have after-tax profit of 52.3 billion VND, double that of the same period last year.

This is the plan approved by shareholders of GC Food Joint Stock Company (GFC) at the annual general meeting on the morning of April 12 in Ho Chi Minh City.

Mr. Nguyen Van Thu - Chairman of the Board of Directors of GC said that this year the company increased its production scale, promoted the ability to self-supply raw materials for subsidiaries and members, so it planned to grow strongly compared to last year.

Accordingly, the company targets 2024 revenue of more than 572 billion VND, profit of 52.3 billion, respectively increasing 20.6% and 100% compared to the same period in 2023. Thus, with this expectation, on average, GC Food expects to earn 4.3 billion VND in profit per month.

Explaining the reason for the high profit plan, Mr. Thu said that from 2022 to now, the company has focused on developing and mastering large raw material areas, so the cost of making products is better. The company has also researched aloe vera tissue culture in LAP rooms, and incubated f1 tissue culture plants. Every year, GC Food supplies tens of millions of tissue cultured aloe vera plants to farmers, contributing to reducing raw material costs. In addition, the company's two coconut jelly and aloe vera processing factories are being expanded and their capacity is doubled.

Assessing the export market, GC Food believes that Vietnamese agricultural products continue to benefit from preferential tax rates thanks to free trade agreements (FTAs) signed with South Korea and Japan.

This year, the company's main customers not only maintained production but also increased purchases by 50%. In addition to the old market, GC will expand to potential countries with large populations, with young people accounting for over 40% such as China, India, Indonesia, and Malaysia. Young people are the target customer segment of this business because they maintain the consumption rhythm of beverage and food products despite the economic recession.

In the 2024-2026 plan, the company aims to develop a high-tech company, controlling 100% of the supply chain from input materials to production. The goal is to achieve a compound growth of 30% from now until 2028. Gradually complete the aloe vera raw material area with an area of up to 500 hectares.

Workers at an aloe vera processing factory in Ninh Thuan. Photo: Linh Dan — Workers at an aloe vera processing factory in Ninh Thuan . Photo: *Linh Dan*

In addition to its business plans, this year the company plans to pay a 10% dividend in stock or cash. The company has just approved the issuance of 30.68 million shares to pay dividends in 2023 to shareholders. Last year's dividend was 16%, meaning 100 shares received 16 more shares.

GC Food has been in the aloe vera and coconut jelly industry for more than 10 years. It is the leading producer of this product in the Vietnamese market with an output of more than 20,000 tons per year, present in 19 countries around the world , and is often called the "king of aloe vera".

The company owns the Vietfarm aloe vera processing factory (Ninh Thuan) with a capacity of 35,000 tons of fresh leaves per year, producing 15,000 tons of finished products, and the Vinacoco coconut jelly factory (Dong Nai) with a capacity of about 12,000 tons of finished products per year.

The company is also the only unit in Vietnam that sells to major brands such as OKF - the world's leading aloe vera juice producer, Lotte - the world's 5th largest aloe vera juice producer, and Morinaga - the second largest dairy company in Japan.

Thi Ha

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