- 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% |
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GPM | 28.0% | 32.0% |
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Soy milk | 40.1% | 39.1% |
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Sugar | 22.4% | 28.9% |
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EBIT margin | 15.1% | 21.4% |
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NPM | 14.9% | 21.1% |
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Source: QNS, Vietcap
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