Tra fish processed at Vinh Hoan JSC. The company’s after-tax profit in Q1 decreased by 51 percent to touch VNĐ152 billion.(Photo: tinnhanhchungkhoan.vn)Hanoi (VNS/VNA) - Fishery enterprises’ first-quarter profits were hithard due to the negative impacts of the COVID-19 outbreak.
According to the General Department of Customs, seafood export turnover in thefirst quarter of 2020 reached over 1.61 billion USD, down 9.9 percent comparedto the same period in 2019.
The Cuu Long Fish JSC (ACL) reported post-tax profit down by 98 percent to justover 1 billion VND (43,550 USD), the lowest profit the company has recorded inthe last four years.
As of March 31 this year, ACL's total assets stood at 1.4 trillion VND, aslight decrease of 3 percent compared to the beginning of the year.
Inventory amounted to nearly 721 billion VND, up 14 billion from the beginningof the year, and accounted for over 50 percent of total assets.
This year, ACL expects to collect only 1.35 trillion VND in revenue and 75billion VND in pre-tax profit, down 5 percent and 53 percent compared to theprevious year.
According to ACL’s leaders, this year posed many challenges for Vietnam’spangasius export market because the COVID-19 pandemic had caused suspendedproduction and economic damage.
They said that they would increase their participation in trade promotionprogrammes and exploit new markets such as China and Mexico in addition tomaintaining key export markets such as the US and Asia.
The Vinh Hoan JSC (VHC)’s first-quarter revenue was reported at 1.63 trillionVND, down by 9 percent year-on-year. The high cost of goods sold caused grossprofit to halve to only 215 billion VND.
The company’s after-tax profit decreased by 51 percent to touch 152 billion VND.
At the end of March, VHC's total assets stood at 6.44 trillion VND, down nearly200 billion VND from the beginning of the year.
Short-term receivables were recorded at nearly 1.3 billion VND, down 14 percentcompared to the beginning of the year. VHC's inventories and liabilitiesdecreased by 5 percent and 19 percent, respectively, to nearly 1.34 trillion VNDand 1.4 trillion VND.
VHC attributed the sharp decline in business results to the sharp decline ofpangasius prices and the impacts of the COVID-19 pandemic.
VHC forecast two scenarios for its 2020 business results. In the negativescenario, VHC expects to collect 6.45 trillion VND in revenue and 800 billion VNDin post-tax profit, down by 18 percent and 68 percent year-on-year.
In a more positive scenario, the company targets a fall of nearly 10 percent inpost-tax profit compared to the previous year. This is the first time VHC hasplanned a fall in profit since its listing.
The Hung Vuong JSC (HVG) suffered a loss of nearly 254 billion VND in Q1.
HVG's sales of goods and services decreased by 46 percent compared to the sameperiod in 2019, to over 729 billion VND.
HVG said that since October last year, purchasing power in most export marketshad dropped sharply.
Mekong Fisheries JSC (AAM) also witnessed profit falling by 79 percent to reachonly 666 million VND in the first quarter.
AAM attributed the decline to the sharp decrease in export sales.
Pangasius was a strategic product of the fishery industry, but was facingincreasingly strict economic and technical barriers, the company said.
In 2020, AAM leaders have set a target of 220 billion VND in revenue, equal to2019, and pre-tax profit of 6 billion VND, down 25 percent./.
VNA
