In order to compete, in 2024, Vissan will review and propose a new model for traditional market business activities, better serving consumers.
PROFIT OF 141 BILLION VND IN 2024
On April 26, 2024, Livestock Science Joint Stock Company (Vissan – code VSS) successfully organized the 2024 Annual General Meeting of Shareholders.
Mr. Nguyen Ngoc An, General Director of Vissan, presented the 2024 mission orientation, with total revenue reaching 3,570 billion VND, profit before tax expected to reach 141.5 billion VND, output of fresh food and processed food respectively being 10,600 tons and 23,500 tons respectively.
Vissan’s Board of Directors assessed that in 2024, the world economy is forecasted to grow slowly, pressure on interest rates, exchange rates, and inflation will increase, and decreasing purchasing power will remain a major challenge for businesses.
Competitors with strong financial resources, advantages in raw material sources, and implementing many sales support programs to gain market share, leading to increasingly fierce competition…
According to Mr. An, in order to complete the set plan indicators, the company has developed solutions to prepare good sources of raw materials such as promoting the strategy of developing live pig raw materials in the direction of Feed-Farm-Food.
Establishing links and cooperation on the source of live pigs with large-scale livestock units to ensure a stable source of pigs in the long term. Review and propose a new model for traditional market business activities to increase competitiveness, better serving consumers.
“We focus on expanding business to many distribution channels, especially focusing on the online sales channel. Cooperating to bring Vissan products to Tiktok shop… while continuing to promote products through shopping stimulus programs with many new forms,” said Mr. An.
In addition, the company will continue to research and develop new product lines, such as silk sausage lines, distributed at convenient supermarket systems such as Ministop, GS25… targeting young customers and Gen Z customers in Vietnam.
CLOSING OF SALES OUTLETS
In 2023, Vissan’s pork output was 9,854 tons, a decrease of 10% due to consumers buying less pork or switching to other foods.
Competitors in the same industry implementing many promotions also affected the output of pork sold. In 2023, pork revenue reached 1,048 billion VND.
Revenue from processed food reached 2,2025 billion VND, a decrease of 14.48%, and the most decreased group was sterilized sausage and sausage.
According to Vissan, purchasing power has decreased sharply in most sales channels. Business difficulties, reduced income, and a number of employees leaving their jobs have caused some sales routes to be broken, causing output sold in traditional channels to decrease sharply compared to last year.
In addition, due to the impact of the market’s decreasing purchasing power, the sales outlets of the associated partners had to close, Vissan has strengthened the consolidation of the traditional sales channel system, and actively opened new alternative sales points.
At the end of 2023, Vissan basically completed the plan for revenue and adjusted profit. Specifically, total revenue reached 3,384.6 billion VND. Profit before tax was 138.6 billion VND, reaching 100.4% of the plan.
