Seafood industry demonstrates recovery with noteworthy dividend payments from major enterprises

Workers of Vĩnh Hoàn Joint Stock Company (VHC) process tra fish. VHC has approved a stock dividend plan of 20 per cent for 2022. Photo VHC

HÀ NỘI Recent announcements from two prominent enterprises in the seafood industry indicating substantial dividend payments indicate the industry’s recovery.

According to the Việt Nam Association of Seafood Exporters and Producers (VASEP), exports in November 2023 increased by 6 per cent compared to November 2022, reaching nearly US$840 million.

Except for shellfish, the exports of primary products in November 2023 surpassed the same period last year, with shrimp increasing by 4 per cent, tuna by 26 per cent, pangasius by 12 per cent, squid and octopus by 3 per cent, and other sea fish by 4 per cent.

Vĩnh Hoàn Joint Stock Company (VHC) has approved a stock dividend plan of 20 per cent for 2022. As part of this plan, Vĩnh Hoàn will issue 37.4 million shares for dividend payment, with a ratio of 100:20 (shareholders owning 100 shares will receive an additional 20 shares).

The dividends will be paid from undistributed after-tax profits as of December 31, 2022, and the expected release time is within 45 days from the date the State Securities Commission receives all the necessary documents from Vĩnh Hoàn.

After the dividend payment, the charter capital of Vĩnh Hoàn will increase by more than VNĐ374 billion ($15 million), reaching VNĐ2.24 trillion.

In the third quarter of 2023, Vĩnh Hoàn recorded a net revenue of VNĐ2.7 trillion, representing a 17 per cent decrease compared to last year. Despite reduced costs of goods sold, Vĩnh Hoàn’s gross profit declined significantly from VNĐ624 billion to VNĐ285 billion, marking a 54 per cent decrease compared to the third quarter of 2022.

Costs were reduced, with financial costs decreasing by 58 per cent to VNĐ45 billion and sales and corporate management expenses decreasing by 7 per cent to VNĐ134 billion. Consequently, after deducting expenses, Vĩnh Hoàn reported a profit of nearly VNĐ201 billion, representing a 56 per cent decrease compared to the same period in 2022.

Minh Phú Seafood Joint Stock Company (MPC) has approved a dividend payment plan of 4.11 per cent for 2022, equivalent to VNĐ411 per share.

With 399.89 million outstanding shares, it is estimated that Minh Phú will pay a total dividend of VNĐ164 billion.

Regarding business performance, Minh Phú Seafood recorded a net revenue of VNĐ2.99 trillion in the third quarter of 2023, a 41 per cent decrease compared to the same period last year.

After deducting the cost of goods sold, the company’s gross profit decreased by 59 per cent to VNĐ321 billion. Despite an increase in interest expenses, the company reduced financial costs by 13 per cent to VNĐ76 billion, and sales costs decreased by 35 per cent to VNĐ204 billion compared to the third quarter of 2022.

However, Minh Phú Seafood reported an after-tax loss of VNĐ26 billion, while during the same period last year, it had a profit of more than VNĐ332 billion. Over the year’s first nine months, the company’s net revenue reached VNĐ7.5 trillion, representing a 46 per cent decrease.

After deducting expenses, the company incurred a loss of VNĐ109.7 billion, a significant decline compared to the profit of VNĐ571 billion in the same period last year. VNS