Thanh Thanh Cong-Bien Hoa's increased 2023 revenues have given the company a healthy boost in profits. (Photo Thanh Thanh Cong-Bien Hoa) Quang Ngai Sugar Company announced that sales increased by 73% in2023, with revenues exceeding 4.04 trillion VND, more than doubling thecompany's 2022 figures. Its gross profits were 3.22 times higher in 2023 thanthe previous year, reaching nearly 1.21 trillion VND.
The company stated that consumer purchasing power had not yetfully rebounded following the pandemic, resulting in reduced consumption ofproducts such as milk, mineral water, beer, and candy. However, profits inthese categories remained relatively stable due to cost control efforts.
"The Quang Ngai Sugar Company has invested in developing rawmaterial areas for industrial production to increase sugarcane productivity andquality," said Vo Thanh Dang, the company's general director. "Thesugar production line is now operating steadily, helping reduce costs and lowerproduct prices."
Dang also acknowledged that trade defence measures and effectivecontrol of smuggled sugar products had contributed to the sector's efficientperformance.
Thanh Thanh Cong-Bien Hoa, another major enterprise in the sugarindustry, also experienced increased revenue and market share.
In Q4 2023, the company's revenue reached 7.02 trillion VND, whileits profit margin soared from 7.6% to 10.6%, resulting in a 40% increase ingross profit.
Thanh Thanh Cong-Bien Hoa attributed this improvement in grossprofit margin to a shift in its agricultural value chain revenue structure. Thecompany's net profit in Q4 2023 reached 142 billion VND, 50% higher compared tothe same period in 2022.
Shareholders have yet to reap the rewards of these reported profitincreases. The share prices of Quang Ngai Sugar (QNS), Son La Sugar (SLS) andThanh Thanh Cong-Bien Hoa (SBT) have all decreased in the last six months.
Global sugar prices have been on a downward trend since November2023. They declined to 20.5 US cents per pound at the end of December 2023, a21.3% decrease compared to the beginning of the quarter.
According to Vietcombank Securities Company (VCBS), sugar pricesin Vietnam dropped to 21,200 VND per kilogramme by the end of Q4 2023, but thiswas still higher than prices were at the start of that year.
Other sugar businesses have recently taken on higher levels ofdebt as they scaled up their business activities. These increases in debt arereflected in their listed share prices./.
VNA
