VHC – Weak selling prices continue, earnings decline 16% YoY in Q1 - Earnings Flash
  • 2024-05-14T00:00:00
  • Company Research
  • VHC announced Q1 2024 results with revenue of VND2.9tn (USD114mn; +29% YoY) and NPAT-MI of VND170bn (USD7mn; -23% YoY), fulfilling 23% and 10% of our respective full-year forecasts. As earnings trailed our projections, we see a downside risk to our forecasts, pending a more comprehensive review. 
  • In Q1 2024, VHC’s revenue grew 29% YoY which was mainly led by a 24% YoY increase in sales of frozen pangasius filets and related products (e.g., breaded fish, fish fat, fish meal, and feed) together with 34% YoY growth in sales of collagen and gelatin (C&G). In our estimate based on Agromonitor’s data, VHC experienced a 46% YoY surge in pangasius filet export volume which was offset by a 20% YoY decrease in export prices. As a result, GPM contracted 8 ppts chiefly due to weak selling prices.
  • Regarding export markets, VHC’s sales turned positive growth across key markets, including US (+2% YoY), Europe (+10% YoY), and China (+50% YoY). The domestic market made the largest contribution to revenue in Q1 2024 (29% of total Q1 revenue).

VHC’s Q1 2024 results

VND bn

Q1 2023

Q1 2024

YoY

QoQ

Q1 2024/  2024F

Net revenue

2,222

2,856

29%

19%

23%

*By market

 

 

 

 

 

-       US

707

723

2%

23%

 

-       Europe

505

553

10%

33%

 

-       China & Hong Kong

226

339

50%

56%

 

-       Others

250

629

152%

4%

 

-       Vietnam

558

807

45%

-1%

 

*By product

 

 

 

 

 

-       Collagen & gelatin

178

238

34%

11%

 

-       Frozen filets & others

2,070

2,572

24%

25%

 

-       Rice products

108

176

63%

17%

 

Gross profit

384

266

-31%

36%

11%

EBIT

265

134

-49%

186%

8%

PBT

260

217

-17%

120%

11%

NPAT-MI

219

170

-23%

256%

10%

Gross margin

17.3%

9.3%

 

 

 

SG&A expenses/revenue

5.4%

4.6%

 

 

 

EBIT margin

11.9%

4.7%

 

 

 

NPAT-MI margin

9.9%

5.9%

 

 

 

Source: VHC, Vietcap’s forecast (*Revenue breakdowns by market and product are based on VHC’s preliminary results, of which the total revenue figure is slightly different from the official number)

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