Vissan: Profit before tax in 2021 is expected to decrease by 12%, continuing no dividend

According to the document of the Annual General Meeting of Shareholders in 2021, Vietnam Animal Industry Joint Stock Company (Vissan, UPCoM: VSN) set the target of 12% reduction in profit before tax and no dividends to shareholders.

In 2021, Vissan sets a revenue target of 5,100 billion VND, approximately to 2020. In which, the company expects fresh foods including pork and beef with an output of 18,552 tons, equal to the level of 2020 and The output of processed food increased by 8%, reaching 30,350 tons.

At the same time, the company expects operating expenses including selling expenses and administrative expenses to increase 6%, accounting for 841,460 billion dong. Financial expenses are also expected to increase by 14%, causing pre-tax profit to decrease by 12% compared to 2020, to VND 180 billion.

The company targets a 12% drop in profit in 2021.

Based on this business plan, Vissan is not expected to pay dividends in 2021 to shareholders on the reason to set out the financial capacity to implement the project “Relocation and technological innovation of Vissan cattle slaughtering and food processing plant” and investment in production machinery and equipment in 2021.

In the fresh food segment, Vissan is expected to restructure the fresh food segment from the method of selling, especially focusing on online sales channels, traditional stalls. Deploying the development of a business plan for blister tray products, while waiting for the project to invest in the Vissan cooler packaging line to put into use.

For processed food segment, the company also continues to restructure the proportion of the industry to limit business risks. In particular, to develop the family of sausages, frozen processing into traditional sales channels (GT).

In 2020, VSN’s net profit decreased by 7% compared to 2019, to more than 165 billion, mainly because net revenue increased only 3%, while COGS (+ 5%), interest (+ 37%) and Selling expenses (+ 4%) both increased stronger than revenue.

VSN’s 2020 AGM has passed the business plan for 2020 with the target of total revenue of VND 5,580 billion, an increase of 12% compared to 2019, while profit before tax is expected to reach VND 180 billion, down 20% compared to the results in 2019.

However, VSN has adjusted down 9% of its total revenue target in 2020, most of which is fresh beef (down 58% of output) compared to the original plan, to VND 5,100 billion. Meanwhile, the pre-tax profit target remains at 180 billion dong.

Compared to the adjusted plan, VSN has completed its revenue target and exceeded 14% of its pre-tax profit target.

Source: ndh.vn – Translated by fintel.vn