QNS - Robust sugar earnings growth spearheads profitability - Earnings Flash
  • 2024-04-25T00:00:00
  • Company Research
  • QNS released its Q1 2024 results with revenue of VND2.5tn (USD101mn; +18% YoY) and NPAT-MI of VND532bn (USD21mn; +68% YoY), completing 24% and 25% of our respective full-year forecasts. As these results are tracking ahead of our forecasts, we see slight upside potential to our current projections, pending a fuller review.
  • We attribute the revenue growth in Q1 2024 to the strong sugar business, resulting from (1) fears of supply shortages due to El Niño weather in both global and domestic markets keeping local sugar prices at a high level, and (2) the Government’s stricter action in controlling smuggled sugar. Therefore, QNS’s sugar volume grew 34% YoY to 53K tonnes and sugar GPM expanded 6.5 ppts to 28.9%, leading to the jump of 94% YoY in QNS’s sugar gross profit in Q1 2024.
  • In Q1 2024, soy milk revenue declined 3% YoY due to weak demand in which volume slid 3% YoY, per management. In addition, soy milk GPM declined 1.0 ppts to 39.1% in Q1 2024.
  • In Q1 2024, QNS’s EBIT sharply increased 67% YoY as SG&A/sales decreased 2.2 ppts YoY, mainly due to cost efficiencies improving in the sugar business.

QNS’s Q1 2024 results

 VND bn

Q1 2023

Q1 2024

YoY

Q1 2024 as % of Vietcap's 2024F

Revenue

2,130

2,522

18%

24%

Soy milk

                817 

789

-3%

18%

Sugar

               746 

1,124

51%

28%

Others(1)

               566 

609

8%

30%

Gross profit

               596 

808

36%

24%

Soy milk

                327 

308

-6%

17%

Sugar

                167 

325

94%

31%

Others(1)

                 101 

175

73%

36%

Operating profit

               322 

539

67%

25%

Non-operating profits

                  34 

40

18%

13%

PBT

               357 

579

62%

24%

NPAT-MI

                317 

               532 

68%

25%

 

 

 


 

GPM

28.0%

32.0%

 

 

Soy milk 

40.1%

39.1%

 

 

Sugar 

22.4%

28.9%

 

 

EBIT margin

15.1%

21.4%

 

 

NPM

14.9%

21.1%

 

 

Source: QNS, Vietcap

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