The Vietnamese company Minh Phu Seafood Corp has announced that aims at accounting for 25% of the world shrimp market share by 2045. This goal is projected to be achieved by Minh Phu through short, medium and long-term strategies, particularly the 2021-2025 strategy with the key objective being building a green and clean and sustainable shrimp value chain of Vietnam, with competitive prices compared to India, Indonesia and Ecuador, improving processing productivity and reducing COGS.
According to the plan, Minh Phu Seafood Corp will accelerate the construction of a chain of projects of Minh Phu seafood processing factory in Khanh An Industrial Park (Ca Mau), aiming to compete in shrimp processing and exporting technology on the world market.
The projects include the construction of a 3-stage centralized water treatment system, each stage with a treatment capacity of 2,700 m3/day and covers an area of 24.5 ha. All projects adopt a technology to reuse wastewater, rainwater and surface water for shrimp processing for export.
The project is fully equipped with facilities, and modern processing machinery and also invests in social housing, housing care and welfare for employees of the Group, reported the Vietnam Association of Seafood Exporters and Producers (VASEP).
Iniciative includes four projects
The scale of the project chain includes four projects: Minh Phat, Minh Qui and Minh Phu seafood processing factorys, with a capacity of 18,000 tons/year; and Quang Minh packaging factory, with a capacity of 5,000 tons/year. The project is implemented according to the circular economy and carbon balance in the whole Minh Phu shrimp value chain.
Minh Phu Seafood Corp sets out a plan in 2022 to achieve revenue of over VND 21 trillion, pre-tax profit of more than VND 1,413 billion , and after-tax profit of about VND 1,286 billion. This year, the company plans to process 71.8 thousand tons of shrimp for general sales and export.
Profit margin improved from 8.8% to 11.6%
Some days before the announcement, from the company was reported its consolidated financial statements for the first quarter of 2022, with net revenue of VND 4,239 billion, up 50.8%. The gross profit margin improved from 8.8% to 11.6%.
The cost of goods sold increased by 46% to VND 3,747 billion, gross profit doubled over the same period to VND 491.8 billion. Financial revenue in the period decreased by 36.8% to 19.2 billion, while financial expenses jumped 24.4% to 32 billion.
At the end of the first quarter of 2022, Minh Phu Seafood Corp reported a profit after tax of 91.2 billion VND, 3.4 times higher than the same period in 2021. Selling expenses increased by 80% to 314.7 billion VND, and expenses for corporate management increased by 32.7% to 66.1 billion.
As of March 31, 2022, the total assets of Minh Phu Seafood Corp reached VND 9,647 billion, a slight increase compared to the beginning of the year. Most of which are short-term assets, reaching 7,100 billion VND (accounting for 73.6%). In which, inventories decreased by 12% to VND3,924 billion. Long-term assets increased 7% to VND 2,547 billion.
According to the annual report, Minh Phu sets a target of 21,018 billion VND in revenue, and 1,287 billion VND in profit after tax; respectively, increased by 55% and 96% compared to the implementation of 2021.
The company said it will continue to evaluate the trend of price fluctuations of main raw materials related to Minh Phu’s the production and business activities, specifically the price movements of raw shrimp and finished shrimp in the world.
In addition, Minh Phu Seafood Corp focuses on speeding up the project of a high-tech industrial complex to develop a shrimp value chain with a scale of 10,000 hectares in Kien Giang. Thereby increasing the value of Minh Phu shrimp products.