On April 26, Vietnam Livestock Technology Corporation (Vissan) held its 2024 Annual General Meeting of Shareholders.Â
In 2023, Vissan sold 9,854 tons of pork, 616 tons of beef and 21,511 tons of processed food, down 10%, 2.5% and 15% year-on-year, respectively.
The sharp decline in consumer purchasing power has affected the sales volume of products. According to Vissan, in addition to the decline in consumer purchasing power, pork is also facing fierce competition from waves of cheap pork being sold on the black market, while many competitors with strong financial resources and advantages in raw materials are willing to implement many promotional programs to gain market share.
Net revenue in 2023 reached VND3,334 billion, down 13%, and profit after tax was nearly VND107 billion, down 22%. For 2024, the company targets revenue of VND3,570 billion and pre-tax profit of VND141.5 billion.
Responding to shareholders about the consumption trend of processed meat products in the near future, Vissan’s management said that people’s consumption habits are greatly affected by income factors. During the current difficult economic period, when incomes are falling, people tend to tighten spending, switching to cheaper food sources, affecting the consumption and sales volume of companies operating in the pork and beef food industry in general and Vissan in particular.
 When asked by shareholders about how Vissan plans to keep up with the trend and promote its online sales channels in the context of customers’ consumption habits shifting from offline to online, the company’s management said that although e-commerce currently only accounts for a small proportion of the Company’s revenue, compared to 2 years ago, Vissan’s sales channel has been increasingly focused on.Â
Vissan recognizes the trend of customers shifting to online shopping, and the company has been investing heavily in e-commerce platforms. Vissan is strengthening cooperation with leading online sales platforms, improving user experience and increasing online promotions to stimulate shopping and increase customer access to Vissan products.
In 2023, Vissan’s sales revenue on e-commerce platforms such as Vissanmart, Shopee and Sendo increased by 50% compared to 2022.
In 2024, Vissan said it will boost online sales through the Vissanmart.com website and existing e-commerce platforms, while also entering into cooperation agreements to bring VISSAN products to new e-commerce platforms (TikTok, Lazada, etc.) to increase market presence and consumption volume.
The management team revealed that the Company is currently working with partners to implement content, and it is expected that the Company will complete the new platforms and put them into operation in Q2/2024.
In addition, Vissan said that for the processed food industry, the company will continue to launch new product lines, distributed in convenient supermarket systems, targeting young customers, especially Gen Z.
