"Aloe Vera King" GC Food sets revenue target of 523 billion VND | Entrepreneur

GC Food is known as the "king of aloe vera" in the Vietnamese market, owning the largest and most modern aloe vera processing factory in Vietnam, supplying large food processing factories and exporting.

In 2022, GC Food recorded revenue of VND 431 billion, after-tax profit of VND 26.58 billion, but profit margin decreased compared to 2021 due to increased costs.

Vua nha đam GC Food đặt mục tiêu doanh thu 523 tỷ đồng - Ảnh 1.

Mr. Nguyen Van Thu spoke at the congress on the morning of April 7.

The congress approved the 2023 revenue target of more than 523 billion VND, an increase of 22% compared to 2022, and after-tax profit of nearly 27 billion VND, only a slight increase compared to 2022.

In 2022, GC Food paid stock dividends at a rate of 8%, expected to maintain this level in 2023 but paid in cash.

According to the strategy for the period 2023 - 2025, GC Food continues to invest in the core area, with the advantage of aloe vera, including: developing large-scale aloe vera raw material areas, expanding aloe vera tissue culture rooms, producing cosmetics from aloe vera, producing aloe vera juice, etc.

In addition, the company will implement a coconut jelly factory project in Ben Tre ; establish a beverage factory from coconut jelly, aloe vera, apples, etc.

Total investment capital in the above 3 years is expected to be 438.8 billion VND.

At the meeting, shareholders wondered about GC Food's good revenue growth but declining profits. Will the situation improve in the future?

Vua nha đam GC Food đặt mục tiêu doanh thu 523 tỷ đồng - Ảnh 2.

Typical products of GC Food

Mr. Nguyen Van Thu, Chairman of the Board of Directors of GC Food, said that the planned revenue is calculated based on the recorded signed contracts, so it is very close to reality.

However, increased costs due to weather impacts have resulted in lower-than-expected aloe vera harvests. The company has hired engineers to conduct further research to increase efficiency in growing areas. In order to maintain long-term relationships with customers and avoid supply disruptions, GC Food has accepted a reduction in profit margins in 2023. This is also an investment strategy for the future.

GC Food will join the stock market from December 2022.

According to the remuneration settlement of the Board of Directors in 2022, the Chairman of the Board of Directors will only receive 7 million VND/month, and members of the Board of Directors will receive 6 million VND/month. GC Food plans to maintain this remuneration level this year.

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