Minh Phu Seafood JSC, one of Vietnam’s biggest shrimp processors, reported a 25 percent year-on-year fall in Q1 post-tax profit to VND102 billion ($4.4 million).
Minh Phu’s shrimp hatchery in the southern province of Ninh Thuan. Photo courtesy of Minh Phu Seafood JSC.
It attributed the falling profit to a 20 percent drop in income from financial activities and a 27 percent increase in cost of goods sold during the period.
The company also said that the pandemic has changed consumer behaviour in its main export markets like the U.S., Japan, Canada, Australia and New Zealand. They have prioritized buying essential products.
Seafood exports to these markets fell by half in the first quarter of the year, contributing to a year-on-year revenue drop of 12 percent to VND1.6 trillion.
The company aims to export $638 million worth of shrimp this year.
Its total asset value at the end of March was nearly VND7.4 trillion.
It has targeted revenues of VND15.7 trillion and post-tax profit of VND1.4 trillion this year.