The PAN Group reports 75 per cent rise in first-quarter profit despite COVID-19

17:39 | 07/05/2021
PAN Group JSC (HNX: PAN) has announced that its consolidated net revenue reached VND1.68 trillion ($73 million) and consolidated after-tax profit rose VND50 billion ($2.17 million) in the first quarter of 2021, up 31 and 75 per cent on-year, respectively.
the pan group reports 75 per cent rise in first quarter profit despite covid 19
Cashew nut processing at Lafooco, The PAN Group

The PAN Group attributed the growth in consolidated net revenue mainly to shrimp exports (up 36 per cent), seed and agricultural products (up 11 per cent), confectionery (up 63 per cent), and coffee (up 41 per cent). In the cashew segment, the group promotes the production and business of products and brands adding value, reducing the proportion of raw cashew materials of high revenue and low margin.

Regarding profit, the main contributors to consolidated profit growth were seed and agricultural products (up 111 per cent), nuts (up 195 per cent), and confectionery (up nearly six times), traditional fish sauce products (up 32 per cent). The coffee segment reduced losses against the same period in 2020, reaching the breakeven point.

In the first quarter of 2021, global supply chain disruptions continued and affected global economic performance, especially in transportation and logistics. The global shortage of empty containers increases transportation costs which is the main part of the input costs in most businesses, especially import-export enterprises.

Due to the sharp increase in logistics costs and input materials in the first quarter, although The PAN Group’s revenue from shrimp exports grew 36 per cent, its after-tax profit decreased by 23 per cent.

In Vietnam, the third outbreak of the pandemic coinciding with the Lunar New Year also leads to a decline in demand for travel and goods consumption. Many agricultural products cannot be sold locally in some areas implementing social distancing measures. The farming activities of local people and the business of enterprises in these areas face many difficulties. In that context, The PAN Group and all member companies have made efforts to overcome those challenges and achieved remarkable business results.

The group's total consolidated assets were nearly VND12 trillion ($521.74 million), which remained nearly unchanged compared to the beginning of this period. The solvency ratios and the debt-to-equity ratio in the first quarter of 2021 was approximately equal to the end of 2020.

In the following quarters, the group continued to promote its core products and business activities, focusing on cost reduction. In addition, the group will accelerate the acquisition of Bibica shares from Lotte to implement the plan to increase its ownership to 100 per cent and at the same time continuing to increase its ownership in Vietnam Fumigation JSC to over 50 per cent to complete its value chains in the agricultural sector.

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By Bich Thuy

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