- VHC announced 9M 2023 results with revenue of VND7.6tn (USD313mn; -29% YoY) and NPAT-MI of VND849bn (USD35mn; -53% YoY), fulfilling 67% and 55% of our respective full-year forecasts. As the results trailed our projections, we see a downside risk to our forecasts, pending a more comprehensive review. 

- In Q3 2023, VHC’s revenue plunged 17% YoY and was roughly flat QoQ. This was primarily led by a 9% QoQ recovery in the sales volume of frozen pangasius filets & others that was partially offset by the decrease in average selling prices. VHC’s EBIT decreased 66% QoQ due to 18% QoQ higher SG&A expenses amid the flat QoQ revenue growth. 

- In terms of sales by location in Q3 2023, VHC experienced the QoQ revenue increase across markets except for the U.S. (-20% QoQ). Strongest revenue improvements were posted in the China (+28% QoQ), and Europe (+10% QoQ). Its mainstay market, the U.S., shows a sharper YoY decline than our expectation in 9M 2023, showing continuous weak confidence from foodservice providers due to subdued demand in this market.

Powered by Froala Editor