The Tasty Tale of a Snack Company’s Success: Tripling Profits, One Delicious Cracker at a Time

Sa Giang Import-Export Joint Stock Company (code: SGC) has just announced its Q3/2024 financial statement, with net revenue reaching VND 170 billion, a 60% increase compared to the same period last year.

Additionally, the slower growth of cost of goods sold compared to revenue contributed to an impressive 81% surge in gross profit, amounting to over VND 38 billion. The gross profit margin also improved to 22% during this period.

After deducting expenses, Sa Giang reported a 3Q/2024 pre-tax profit of VND 23 billion, an 82% increase year-over-year.

According to the company’s explanation, the significant increase in profit can be attributed to higher sales volume in Q3/2024 compared to the same period last year, as well as the appreciation of the US dollar exchange rate.

For the first nine months of 2024

, Sa Giang recorded nearly VND 521 billion in net revenue and VND 99 billion in pre-tax profit, marking a respective increase of 71% and 213% from the previous year.

A closer look at the nine-month revenue structure reveals that the export segment contributed the lion’s share with a 73% proportion, amounting to VND 378 billion, a substantial increase of 90% year-over-year. Concurrently, domestic revenue also witnessed a notable rise of nearly 35%, reaching VND 142 billion.

For the full year 2024, Sa Giang has set ambitious targets, aiming for a record-high revenue of

VND 800 billion

and a net profit of

VND 80 billion

. As of the first nine months, the company has accomplished 65% of its revenue target and surpassed the profit goal by 4%.

Upon investigation, Sa Giang, established in 1960 in Sa Dec, Dong Thap, primarily engages in the production of shrimp crackers. Apart from distributing its products in the domestic market, the company has expanded its business network to Europe, Asia, and the Americas.

Sa Giang transitioned from a state-owned enterprise to a joint-stock company in 2004 and subsequently listed its shares on the Hanoi Stock Exchange. Vinh Hoan Corporation (stock code: VHC) serves as the parent company of Sa Giang, holding more than 76.72% of its capital.

As of September 30, 2024, Sa Giang’s total assets stood at nearly VND 410 billion, reflecting a 38% increase from the beginning of the year. Fixed assets accounted for the majority of this amount, valued at over VND 142 billion. Cash and cash equivalents (including fixed-term bank deposits) quadrupled from the beginning of the year to reach nearly VND 88 billion, constituting 22% of total assets. The company’s inventory, including finished goods, raw materials, and goods sent for sale, amounted to nearly VND 92 billion, a 51% increase year-to-date.