AsemconnectVietnam - Vietnam Animal Industry Joint Stock Company (Vissan, stock code VSN - UPCoM) recently announced a resolution approving the adjustment of production and business plan targets for 2023.

According to the decision of the 2023 Annual General Meeting of Shareholders, Vissan targets total revenue of VND4,100 billion and pre-tax profit of VND182 billion, an increase of 6% and 5% respectively compared to 2022. However, according to the new plan, the Company adjusted the total revenue target by 16%, down to VND3,430 billion, and the pre-tax profit target by 24%, down to VND138 billion.
In the first 10 months of 2023, Vissan recorded total revenue of nearly VND2,827 billion, down nearly 10% over the same period and pre-tax profit of approximately VND120 billion, down 18%. Compared to the new plan, Vissan has completed 82% and 87% of the year's plan, respectively.
Vissan said that in the first 10 months of 2023, the Company's production and business activities were affected by many unfavorable objective factors. In particular, the macroeconomy did not recover after the pandemic as predicted and continued to face many difficulties under the negative impact of the decline in global economic growth, inflation, interest rates, and exchange rates remaining at high levels.
In addition, with the strong wave of labor cuts, the unemployment rate will increase from the end of 2022, affecting workers' income, forcing people to tighten spending. These difficulties are beyond the forecasts and planning of businesses, so it is almost impossible for the Company to complete the 2023 plan approved by the 2023 Annual General Meeting of Shareholders and adjust the new plan.
Meanwhile, according to market records, the price of live pork, even in the consumption season of late 2023 - early 2024, will not increase as expected, only fluctuating from 48,000 - 52,000 VND/kg. The main reason is due to weak market consumption and increased domestic supply. Along with the complicated developments of African swine fever, a sell-off of herds occurred and caused meat prices to decrease compared to forecasts.
N.Nga
Source: VITIC/Tinnhanhchungkhoan