The Vietnamese seafood exporter’s revenues fell by half year-on-year to VND 2.1 trillion ($89.5 million), reported VnExpress International. The company’s gross profit margin almost halved from over 11% to less than 6%, while interest on borrowings nearly tripled, contributing to the huge loss.
In the comparable period last year, Minh Phu had earned profits of VND 100 billion ($4.3 million), with last year’s profit growth in double digits and the highest in a decade. For this full year, the company is targeting revenues of VND 18 trillion ($767 million) and profits of VND 1.1 trillion ($46.9 million).
According to Vietnamese investment advice company, Agribank Securities JSC, the financial results of shrimp export companies, including Minh Phu, are bleak because demand in key markets, such as the US and EU, were weak during the first quarter of 2023.