AsemconnectVietnam - Sao Ta Food JSC (code FMC) has just announced its production and business situation in November 2024 with revenue growth of 5% over the same period, but down 21% compared to the previous month.

In November, the production of finished shrimp reached 1,497 tons, up 3% over the same period last year. The output of finished shrimp reached 1,648 tons, up 1.5% over the same period.
Meanwhile, the production of finished agricultural products in November was 42 tons, down 59% over the same period last year. The output of finished agricultural products was 95 tons, also down 16%.
Overall, Sao Ta's November sales reached USD18.38 million, up 5% year-on-year, however, compared to the previous month's results, it decreased by about 21%. In the first 11 months of 2024, Sao Ta achieved about USD228.63 million in sales, exceeding the annual sales plan of USD210 million.
Regarding the shrimp farming situation, FMC has finished stocking the new area (203 hectares), and is currently stocking the old area (322 hectares), expected to be completed on December 20.
On October 22, 2024, the US Department of Commerce (DOC) announced the final results of the countervailing duty (CVD) investigation on frozen warmwater shrimp from Ecuador, India, Indonesia and Vietnam. In which, DOC has set a CVD tax rate for the Vietnamese shrimp industry of 2.84%.
After the DOC's final results are announced, the US International Trade Commission (ITC) will make its final decision on December 5, 2024. If there is a final decision from the ITC, the order will be issued on December 12, 2024.
Sao Ta assesses that if the ITC believes that the subsidy level affects the US shrimp industry, the official tax rate of 2.84% will be a significant barrier for the Vietnamese shrimp industry here. In case the ITC believes that this subsidy level does not significantly affect the US shrimp industry, the lawsuit will be dismissed. About ten years ago, the Vietnamese shrimp industry was also sued in a similar way, but the ITC ruled to dismiss the lawsuit.
"This 'judgment day' has become a very important expectation for shrimp businesses selling here. When planning their 2024 business plans, shrimp businesses may not have anticipated the complexity of this lawsuit and the tax payable will clearly have a significant impact on their operating results. FMC is also very interested and waiting for the "judgment" day, because if there is a "favorable" conclusion, FMC will collect no less than VND40 billion for this tax reserve, contributing positively to the completion of the 2024 plan," Sao Ta said.
N.Nga
Source: VITIC/Tinnhanhchungkhoan