In the fourth quarter of 2023, Sao Ta Foods in Vietnam reported a net revenue of nearly VND 1,253 billion (USD 51.04 million), showcasing a 3.4% increase compared to the same period in 2022.

However, the company experienced some challenges, as the cost of goods sold during the same period increased by 5.1%. Consequently, Sao Ta Foods saw a decline of 8% in its gross profit, which amounted to nearly VND 140 billion (USD 5.7 million).

Improved Financial Management

Despite the hurdles, Sao Ta Foods managed to achieve substantial improvements in its financial performance. The company’s financial revenue surged by over 25%, while financial costs and business management costs decreased significantly, by 58% and 27% respectively, compared to Q4 2022.

Sao Ta Foods recorded a pre-tax profit of VND 88.6 billion (USD 3.61 million) in the fourth quarter of 2023, representing an increase of more than 9% when compared to the same period in the previous year.

2023 Full-Year Results

For the entire year of 2023, Sao Ta Foods reported total net revenue of VND 5,089 billion (USD 207.29 million) and pre-tax profit of VND 304.6 billion (USD 12.41 million). While these figures reflect a decrease of 10.8% and 7.2% respectively compared to 2022, they are considered positive results in light of the challenges faced by Vietnam’s shrimp export industry in 2023.

Sao Ta Foods’ board of directors acknowledged the difficulties encountered in 2023 but emphasized their commitment to minimizing negative impacts. Factors contributing to the decline in sales included a 10% decrease in the average output selling price compared to 2022. Nevertheless, the company managed to fare better than the industry as a whole, which experienced revenue declines of up to 25%.

Leadership in Shrimp Exports

Sao Ta Foods currently holds a prominent position in the international shrimp market. It is the largest Vietnamese enterprise exporting shrimp to Japan and ranks 5th in the US market and 9th in Korea, according to the Vietnam Association of Seafood Exporters and Producers.

Vietcombank Securities (VCBS) has forecasted optimistic prospects for Sao Ta Foods in 2024. The company is expected to achieve net revenue and net profit of VND 6,259 billion (USD 254.95 million) and VND 340 billion (USD 13.85 million), respectively, marking an impressive increase of 23% and 12% compared to the previous year.