Minh Phu Seafood sees profit up 34 times

Minh Phu Seafood Corporation (MPC) recorded a post-tax profit of VND101.4 billion (US$4.54 million) in the second quarter of this year, 34 times higher than the same period last year and the highest level in the last eight quarters, online newspaper Infonet.vn reported.

During the reviewed period, MPC’s net revenue reached VND3.6 trillion, up 37.3 per cent year-on-year. The company’s cost of goods sold (COGS) on net revenue dropped sharply from nearly 93 per cent to 89 per cent, bringing gross profit to VND398.2 billion, double the same period last year.

Thanks to a 26.4 per cent decrease in loan interest, financial expenses were lower than the same period last year. Corporate governance cost also declined sharply by 41 per cent to over VND40 billion. Sales costs increased by 29 per cent to nearly VND182 billion, resulting in a pre-tax profit of VND134.4 billion.

Earning per share (EPS) reached VND1,480, much higher than last year’s figure of VND469.

In the first six months of 2017, MPC’s net revenue reached VND6.34 billion, up 34.5 per cent year-on-year while its post-tax profit totalled VND144 billion, seven times higher than the same period last year. EPS reached VND2,104.

In 2017, MPC targets consolidated net profit of VND841.28 billion. With the results achieved in the second quarter, the company has just completed about 17 per cent of the target.

At the end of Q2, MPC’s total assets reached VND8.3 trillion, of which inventories accounted for nearly VND4.4 trillion.

The company’s liabilities at the end of Q2 amounted to VND5.9 trillion, accounting for 71 per cent of total capital. Of the estimated amount, short-term loans touched VND3.3 trillion, up nearly two times compared to the beginning of this year, while long-term loans were over VND2 trillion, down 41.3 per cent from the beginning of this year.

MPC recently approved the plan of its subsidiary Minh Phu Import and Export of Food Co Ltd to reduce its charter capital from a registered VND40.8 billion down to the actual capital of VND2 billion.

In addition, the Board of Directors approved additional investment into two shrimp farming areas for MPC’s shrimp farming development strategy.

Accordingly, it will add some VND70 billion to increase charter capital of Minh Phu – KG Seafood Co Ltd to VND220 billion, investing more VND30 billion in Minh Phu–Loc An Aquaculture Co to raise its chartered capital to VND180 billion. — VNS

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