Minh Phu Seafood Corporation has recently disclosed its 2023 business outcomes, reflecting a challenging year for the renowned seafood company. Despite facing significant headwinds, Minh Phu’s transparency in reporting provides valuable insights into its financial performance.

Revenue Decline and Profit Plunge

The corporation reported a revenue of VND 10,688 billion (USD 437.58 million) for 2023, marking a substantial 35% decrease compared to the previous year. Moreover, after factoring in the cost price, Minh Phu’s profit plummeted by 62%, resting at VND 1,065 billion (USD 43.6 million).

Minh Phu’s financial revenue experienced a notable decline, contracting by 55.6% to VND 98 billion (USD 4.01 million). Despite cost reduction efforts, the corporation incurred a loss after tax of VND 105 billion (USD 4.3 million) in 2023, a stark contrast to the VND 839 billion (USD 34.35 million) profit during the same period in the previous year. Remarkably, this marks the first instance in eight years that Minh Phu has reported a loss.

Unmet Targets for 2023

Setting ambitious targets, Minh Phu aimed for a revenue of VND 12,790 billion (USD 523.64 million) and a profit after tax of VND 639 billion (USD 26.16 million) for 2023, representing a 22% and 23% decline, respectively, compared to the previous year. Unfortunately, the corporation fell short of achieving these goals, underscoring the challenges faced throughout the year.

Despite a marginal profit of over VND 9 billion (approx. USD 368,475) in the fourth quarter of 2023, Minh Phu still grapples with losses, indicating persistent challenges that need to be addressed.

Financial Overview

As of the end of September, Minh Phu’s total assets stood at VND 10,194 billion (USD 417.36 million), reflecting a decrease of VND 500 billion (USD 20.47 million) from the beginning of the year. Inventories decreased to VND 4,966 billion (USD 203.32 million), with the company making a provision of nearly VND 85 billion (USD 3.48 million). Notably, the cost of construction in progress increased by 35% compared to January 1, reaching approximately VND 1,412 billion (USD 57.81 million).

Minh Phu’s total financial debt amounted to VND 3,886 billion (USD 57.81 million) by the end of the period. On the other hand, the corporation’s equity reached VND 5,619 billion (USD 159.1 million), including VND 928 billion (USD 38 million) in undistributed after-tax profits as of September 30.