Vietnamese shrimp processor Sao Ta Foods has announced its financial results for the first half of 2024, with the company reporting a significant increase in sales revenue and processed shrimp output.

Record-High Sales Revenue

Sao Ta Foods achieved a sales revenue of USD 95 million in the first half of 2024, representing a 17% increase over the same period last year. The company’s processed shrimp output reached 11,255 tons, a 20% increase year-over-year. Processed shrimp consumption also saw a significant jump, rising 26% to 8,449 tons.

While Sao Ta Foods’ processed shrimp business is thriving, its agricultural products division experienced a decline. The company produced 705 tons of agricultural products in the first half of 2024, a decrease of 27% compared to the same period last year. Consumption of agricultural products also fell by 11% to 626 tons.

Factors Driving Growth

Sao Ta Foods attributed its strong performance to self-farmed shrimp and stable consumption contracts. However, sales revenue increased less than consumption output due to smaller shrimp sizes and a slight decrease in unit prices compared to the same period last year. The company remains optimistic about the rest of the year, with good orders already secured.

Sao Ta Foods’ main crop is currently being harvested and is expected to continue until the end of August. The company has assessed that this crop has good productivity, but commercial shrimp prices are low. This may impact the company’s profit margins in the short term.

Global Shrimp Supply Outlook

At its annual general meeting, Sao Ta Foods’ leaders predicted that global shrimp supply will increase by 4% in 2024 compared to last year, leading to reduced selling prices. The company has set a cautious plan for the year due to market uncertainties.

Sao Ta Foods’ export structure remains largely unchanged, with Japan and the US being the largest markets, accounting for around 45% and 30% of total exports respectively. The EU, Australia, South Korea, and other markets account for smaller but still significant shares. The company’s strategy is to reduce its reliance on the US market and focus on growing its presence in Japan.