AsemconnectVietnam - Minh Phu Seafood Corporation (code MPC - UPCoM) recorded a profit of VND38.42 billion in the second quarter, an accumulated profit of VND45.7 billion in the first half of 2024 and completed 3.6% of the yearly plan.

Continuing the recovery momentum, in the second quarter of 2024, Minh Phu Seafood recorded revenue of VND3,737.7 billion, an increase of 59.1% over the same period, after-tax profit of VND38.42 billion, an increase of 278.1% over the same period last year. In which, gross profit margin narrowed from 14.1% to 10.5%.
During the period, gross profit increased by 18.8% over the same period, equivalent to an increase of VND62.03 billion to VND392.84 billion; Financial revenue increased by 161.8%, equivalent to an increase of VND20.06 billion to VND32.46 billion; financial expenses increased by 40%, equivalent to an increase of VND20.04 billion to VND70.19 billion; profit from joint ventures and associates recorded a loss of VND26.52 billion compared to the same period with a profit of VND21.7 billion, a decrease of VND48.22 billion; sales and business management expenses increased slightly by 1.7%, equivalent to an increase of VND4.24 billion to VND260.36 billion and other activities did not fluctuate significantly.
Thus, during the period, although the profit margin narrowed, thanks to the high increase in revenue, gross profit increased by 18.8%, thereby helping the Company record a sharp increase in profit in the second quarter.
Explaining the high profit in the second quarter, Mr. Le Van Diep, Deputy General Director of Minh Phu Seafood, said that it was due to increased sales revenue, and at the same time, the production and business results of shrimp breeding and commercial shrimp companies in the period began to be effective.
Accumulated in the first half of 2024, Minh Phu Seafood recorded revenue of VND 6,488.3 billion, an increase of 45.1% over the same period, profit after tax reached VND 45.7 billion compared to the same period, a loss of VND 88.1 billion, an increase of VND 133.82 billion.
It is known that in 2024, Minh Phu Seafood plans to have revenue of VND18,568.7 billion, profit after tax of VND1,265.7 billion.
Thus, despite the sharp increase in profit in the first half of 2024, with a profit value of VND45.7 billion, Minh Phu Seafood has only completed 3.6% of the annual plan.
Cash flow negative VND782.4 billion, record since 2015
In contrast to the return to profit in the first half of 2024, Minh Phu Seafood's main business cash flow continued to be negative VND782.4 billion compared to the same period of negative VND230.95 billion. In addition, investment cash flow was negative VND106.3 billion and financial cash flow was positive VND623.96 billion, mainly due to increased borrowing to offset the deficit in business cash flow.
It is known that, according to data on iBoard of SSI Securities, after recording a negative cash flow of VND686.87 billion in 2021, Minh Phu Seafood has experienced two years of positive cash flow with a positive value of VND575.77 billion in 2022 and a positive value of VND349.06 billion in 2023.
And if looking more broadly from 2015 to present, the value of business cash flow is negative VND782.4 billion, this is the highest negative value from 2015 to present.
In addition, in terms of asset size, as of June 30, 2024, Minh Phu Seafood's total assets increased by 9.7% compared to the beginning of the year, equivalent to an increase of VND989.9 billion to VND11,198.4 billion. Of which, the main assets in inventory recorded VND5,775.6 billion, accounting for 51.6% of total assets; Fixed assets recorded VND1,995.6 billion, accounting for 17.8% of total assets; short-term receivables recorded VND1,671.5 billion, accounting for 14.9% of total assets and other items.
Regarding asset fluctuations, during the period, cash and short-term financial investments decreased by 50.9% compared to the beginning of the year, equivalent to a decrease of VND265.5 billion to VND255.7 billion. On the contrary, short-term receivables increased by 29.3% compared to the beginning of the year, equivalent to an increase of VND378.3 billion to VND1,671.5 billion; inventories increased by 16.3% compared to the beginning of the year, equivalent to an increase of VND808.9 billion to VND5,775.6 billion ...
The increase in inventories and short-term receivables contributed to Minh Phu Seafood's continued negative operating cash flow in the first half of 2024.
On the contrary, in terms of capital, by the end of the second quarter, Minh Phu Seafood's total short-term and long-term debt had increased by 16.1% compared to the beginning of the year, equivalent to an increase of VND624.4 billion to VND4,511.5 billion and equal to 82% of total equity (at the beginning of the year, outstanding debt was VND3,887.1 billion and equal to 71.2% of total equity). Of which, short-term debt was VND4,277.2 billion and long-term debt was VND234.3 billion.
N.Nga
Source: VITIC/Tinnhanhchungkhoan