Workers processing catfish at Vĩnh Hoàn’s factory.
Vĩnh Hoàn Joint Stock Company (MCK: VHC) has announced its business results for January 2024 with revenue reaching 921 billion VND, increasing by 102% compared to the same period last year and 13% compared to December 2023. This is also the highest result in the past 8 months.
All major markets of this catfish exporting company have recorded a good recovery. Specifically, revenue in the Chinese, American, and European markets increased by 259%, 59%, and 33% respectively compared to January 2023. Revenue in the domestic market also increased by 137%.
In terms of products, the catfish segment contributed nearly half of the total revenue with 448 billion VND, a 64% increase compared to the same period. Other product segments such as by-products, other products, and shrimp crackers also experienced strong growth with increases of 226%, 142%, and 78% respectively.
The healthcare segment reached 74 billion VND, a 239% increase compared to the same period last year.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam’s seafood exports are expected to recover and grow strongly in the second half of the year. With adaptation and adjustment to the market context, it is predicted that seafood companies will help the industry’s export revenue recover to a range of 9.5-10 billion USD in 2024. Specifically, the shrimp sector aims to reach 4 billion USD, catfish to achieve about 1.9 billion USD, and the remaining seafood products are forecasted to bring in about 3.6-3.8 billion USD.
According to the assessment of some financial organizations, global demand for catfish is expected to widely recover from the second half of this year; meanwhile, the supply of catfish in Vietnam is expected to be in a state of shortage.
These factors are expected to help the export price of catfish recover positively in the coming time after a sharp decline in 2023. As a result, they will boost the business performance of catfish exporting companies like Vĩnh Hoàn Seafood.
However, the tensions in the Red Sea at present are causing difficulties in the process of exporting goods in general and seafood in particular due to high transportation costs. High consumer prices will greatly affect purchasing decisions.
