Shrimp King Minh Phu's profit in the second quarter of 2024 is nearly 4 times higher than the same period last year.

Minh Phu's after-tax profit in the second quarter of 2024 increased 3.8 times over the same period, reaching more than VND 38 billion thanks to strong sales growth and effective shrimp breeding and commercial shrimp farming activities of member companies.

The consolidated financial report of Minh Phu Seafood Corporation (stock code: MPC) recorded net revenue in the second quarter of 2024 reaching VND 3,738 billion, an increase of 59% over the same period last year. After deducting the cost of goods sold, the company's gross profit was VND 393 billion, equivalent to a profit margin of 10.5%.

Financial revenue during this period fluctuated strongly, nearly tripling compared to the same period last year, reaching more than VND32 billion. However, financial expenses also increased sharply from VND50 billion to VND70 billion. After deducting all expenses, Minh Phu reported a profit after tax of VND38.4 billion, 3.8 times higher than the same period last year.

In a written explanation sent to the Hanoi Stock Exchange, Mr. Le Van Diep, Deputy General Director of Minh Phu, said that the reason for the increase in profit was due to a significant improvement in sales. In addition, the business results of member units in the shrimp breeding and commercial shrimp farming sectors began to be effective.

In the first half of the year, Minh Phu recorded net revenue of more than VND6,488 billion, up 45% over the same period. Gross profit in the first half of the year reached VND639 billion, up 41% over the same period last year. Gross profit margin in the first half of the year reached 9.8%, an insignificant difference compared to the first 6 months of last year. The company reported pre-tax profit of VND65.8 billion and after-tax profit of VND45.7 billion after deducting expenses, while in the same period, it lost VND33.9 billion and VND88.1 billion, respectively.

At the 2024 General Meeting of Shareholders, Minh Phu set a target of 70,000 tons of production this year, bringing in VND18,568.7 billion in revenue. Pre-tax and after-tax profits were VND1,385.2 billion and VND1,265.7 billion, respectively. This is the third time in the past 5 years that the company has set a target of pre-tax profits exceeding the trillion mark.

After half a year, Minh Phu has completed 34.9% of its revenue plan. However, the company has only completed 4.7% and 3.6% of its pre-tax and after-tax profit targets, respectively.

According to the Company's management, the target of a profit of thousands of billions in 2024 faces many challenges from economic fluctuations . Specifically, the Company recognizes that high inflation may continue to reduce demand for seafood consumption and increase prices of farming and processing materials. The Company chooses a strategy of product diversification, focusing on deep processing to create value-added products and maintain the quality of input materials to face this challenge.

The second issue mentioned by Minh Phu's management is the crisis in energy prices and transportation costs. Accordingly, the company said it will monitor the market and adjust its business plan flexibly, promoting expansion to Asian countries to reduce transportation costs and find niche markets as well as increase its ability to serve the domestic market. Specifically, the company said it will soon strongly exploit the domestic market again with the goal of increasing the total proportion of domestic revenue from the current 1% to 5-10%.

As of the end of the second quarter of 2024, Minh Phu's total assets reached VND11,198 billion, an increase of VND990 billion over the same period. The company has about VND5,697 billion in liabilities, most of which are short-term debts. According to the financial report, Minh Phu currently has equity of nearly VND5,502 billion. Undistributed profit after tax reached VND816 billion.

On the stock exchange, MPC shares are at VND17,200, equal to the price recorded at the beginning of the year. With about 400 million shares outstanding on the UPCoM exchange, the company's market capitalization is over VND6,878 billion.

Source: https://baodautu.vn/vua-tom-minh-phu-lai-quy-ii2024-gap-gan-4-lan-cung-ky-d222197.html