QNS released its H1 2023 results with revenue of VND5.3tn (USD223.8mn; +32% YoY) and NPAT-MI of VND1.0tn (USD43.6mn; +90% YoY), completing 56% and 62% of our respective full-year forecasts and ahead of our expectations. As such, we see potential upside risk to our forecasts, pending a fuller review.

Sugar business experienced strong gross profit margin expansion due to elevated volume and sugar prices. We attribute the 164% YoY revenue growth to global sugar prices increasing in H1 2023. In June 2023, QNS’s refined standard (RS) sugar prices rose by 10% from the beginning of the year while its total sugar volume was 123,000 tonnes  — equivalent to 130% YoY growth in H1 2023. As a result, QNS’s GPM expanded by 11.9 ppts YoY in H1 2023.

Soy milk revenue declined 7% YoY, which was in line with industry weakness. QNS’s soy milk volume declined 12% YoY to 120 million liters in H1 2023, which broadly aligned with the tight milk market due to economic headwinds and fierce competition among Vietnamese milk producers to capture the plant-based milk market. However, soy milk GPM still widened by 1 ppts YoY in H1 2023, which we attribute to its cost efficiency resulting from a ~12% YoY decline in soybean prices in H1 2023.

Powered by Froala Editor