After a year of unpromising business, Vietnam Seed Group Corporation (Vinaseed - NSC) will present new growth targets to the 2025 Annual General Meeting of Shareholders.
Vinaseed said that 2024 is a difficult period, especially when input prices continue to increase, affecting production and business efficiency.
Specifically, raw rice prices have continued to increase since the end of 2023 and reached a record high in October, then dropped sharply in January 2025. While the winter-spring crop (harvested from February to May) is the main crop, accounting for 70% of the annual business output, the high input prices, while the output prices cannot increase too high, have directly affected business efficiency, leading to the loss of product competitiveness, especially in the agricultural sector.
The severe impact of Typhoon Yagi also affected the winter crop business as well as causing almost all the summer-autumn rice in the North to be unable to be purchased. The organization of hybrid seed production encountered difficulties in isolation, leading to a high rate of mixed seeds, causing costly processing costs. At the same time, sea freight rates remained high along with domestic shipping rates that are on the rise from the end of 2024, which will affect the transportation of manufactured goods by water in 2025.
However, the company still basically achieved the target set by the General Meeting of Shareholders, with revenue in 2024 reaching VND 2,448.7 billion, up 20.3%. Pre-tax profit reached VND 272.1 billion, completing the 2024 plan and maintaining the scale compared to the same period.
Regarding the 2024 profit distribution plan, the company plans to continue to maintain a cash dividend rate of 40%. High cash dividends have been a feature of Vinaseed for many consecutive years, with some years the payout ratio reaching 70%.
Entering 2025, Vinaseed identified this as a pivotal year for Vinaseed's growth innovation strategy. The company targets revenue of VND 2,750 billion and pre-tax profit of VND 310 billion, up 12% and 14% respectively compared to 2024. If the plan is completed, this will be the company's record profit figure to date.
To successfully implement the 2025 production and business plan, Vinaseed aims to focus on strategic solution groups, specifically such as innovating the growth model, developing and promoting the commercialization of new product lines that adapt to climate change to increase the gross profit margin of products with high scientific and technological value (hybrid seeds) from 34% to 37%. At the same time, investing more heavily in R&D activities, re-planning production areas, establishing expansion investment projects in the Central Highlands, Vinarice or investing in M&A of seed and rice processing facilities in the South of Hau River using borrowed capital or equity capital as well as comprehensively restructuring the entire group.
Vinaseed's 2025 Annual General Meeting of Shareholders will take place on April 16, 2025. Before the meeting, Vinaseed had a major change in the Board of Directors. Specifically, Ms. Tran Kim Lien, a long-time member of Vinaseed, left the position of Chairwoman of the Board of Directors after more than 20 years in the position. Replacing this position is a familiar face - Ms. Nguyen Thi Tra My, General Director of PAN Group, Chairwoman of PAN Farm. PAN Farm is the parent company of Vinaseed with a holding ratio of up to 80.1%.
Source: https://baodautu.vn/vua-thay-chu-cich-hdqt-vinaseed-manh-tay-dat-muc-tieu-lai-ky-luc-d259619.html
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