PAN Group reports increase in after-tax profits

According to PAN Group's consolidated financial statement for 2023, the group acquired a net revenue of VND4.19 trillion ($176.8 million) in the fourth quarter of 2023, increasing by 7 per cent on-year. The group’s gross profit margin in Q4 reached 23.8 per cent, up 9 per cent compared to the same period last year.

PAN group’s after-tax profit for the fourth quarter was $15.3 million, an increase of 54 per cent on-year. The after-tax profit for the parent company’s shareholders stood at $8.7 million, an increase of 58 per cent compared to the last quarter of 2022.

This is also a record-high profit level for the business, which was unthinkable in 2022. The group's unusual profits were thanks to a factory transfer. The positive business results of the fourth quarter have contributed to offsetting those of the group for the whole year.

In 2023, the group witnessed an accumulated net revenue of $557 million, down by 3.2 per cent on-year. While the agricultural segment increased by nearly 9 per cent, the food sector decreased by more than 10 per cent.

However, thanks to strong growth of 83 per cent in financial revenue and a reduction in sales costs of more than 12 per cent, the after-tax profit saw an increase of 3 per cent to $33.6 million compared to the figures for 2022.

The packaged rice segment has contributed significantly to overall profits by taking advantage of rising rice prices to boost profit margins. As a result, the gross profit margin in this area grew by about 9 per cent in 2022 and more than 15 per cent in 2023.

The agricultural pharmaceutical sector rose strongly in 2023, with revenue increasing by 10 per cent and profits by more than 30 per cent. Record high export prices of rice and durian led to farmers investing more, and the demand for and prices of agricultural chemicals have also increased.

In addition, the company manages its distribution system well, so goods are circulated promptly throughout the system, supporting increased profit margins.

As for the seafood sector, although sales decreased by 10 per cent, profits were almost flat over the same period because the company focused on deeply processed products, creating high-added value to preserve profit margins. This is a positive result compared to the general situation of the seafood industry in 2023 where shrimp exports decreased by 21 per cent and tra exports fell by 25 per cent on-year.

This year, the group expects to continue to witness strong growth thanks to the fisheries sector (the group's largest revenue contribution), which is forecast to see a strong recovery.

The group has determined that the agricultural sector will continue to flourish and bring high efficiency as a result of its scale.

In addition, it will continue to expand its export markets for the packaged food sector (sweets, nuts, fish sauce, and coffee) as demand from the domestic market is still on its recovery path.

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.

Ample opportunities for mergers and acquisitions in agriculture can help investors recover and expand their operations in Vietnam. Nguyen Thi Tra My, CEO of The PAN Group talked with VIR’s Kim Oanh about the group’s strategy in this potential sector.

Many agricultural enterprises, especially food exporting and processing enterprises, are working to save energy, contributing to meeting the country’s greenhouse gas (GHG) emissions target.

On December 1, The PAN Group and Standard Chartered Vietnam signed a MoU collaborating on the implementation of environmental, social, and governance (ESG) financial solutions and services.