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The Soaring Price of Coconuts: A ‘Coconut Tycoon’ Reports a Revenue of Nearly $40 Million but a 23% Drop in Profits

11 May, 2025

Asian Coconut Supplier Sees Revenue Growth but Challenges in Profitability

Asian Ingredients Corporation (AIG) reported that its subsidiary, Asian Coconut Processing Joint Stock Company (ACP), achieved impressive revenue growth in 2024, reaching nearly VND 909 billion, a 37% increase from 2023.

However, pre-tax profit stood at VND 78 billion, while post-tax profit was VND 64.8 billion, reflecting a 15% and 23% decrease, respectively, compared to the previous year.

The company faced challenges with rising costs, as indicated by a 48.26% increase in cost of goods sold to approximately VND 236 billion. Selling and management expenses also increased by nearly 30%.

ACP’s profit margin decreased significantly to 7.5% in 2024, down from 12.63% in 2023.

The market is witnessing a shocking surge in coconut prices.

In just 10 days, fresh coconut prices skyrocketed by 20-30%, reaching record highs.

Vina T&T’s Perspective on Coconut Price Hike

Mr. Nguyen Dinh Tung, CEO of Vina T&T, shared with Vnexpress that their company is currently purchasing coconuts at a rate of VND 200,000-220,000 per dozen (12 coconuts). He likened the rapid price increase to that of gold, stating that prices continue to rise daily.

According to Thanh Nien news, Mr. Cao Ba Dang Khoa, Secretary-General of the Vietnam Coconut Association, attributed the price surge to a decrease in coconut production, with current production levels 40% lower than the previous year. Meanwhile, domestic and export demand remains high. The demand for both fresh coconuts and dried coconut raw materials for processing has increased. In key provinces like Ben Tre and Vinh Long, garden prices range around VND 180,000 per dozen, while in Soc Trang and Bac Lieu, prices reach VND 120,000 per kg.

Coconuts Affected by Salinity in Ben Tre

The price hike can be attributed to the impact of climate change and salinity intrusion, which has affected the quality and supply of coconuts, particularly in key producing areas like Ben Tre and Tien Giang. This phenomenon is not isolated to Vietnam, with coconut prices also surging by 50-100% in other Asian countries like the Philippines and Thailand.

Asian Coconut Processing Joint Stock Company (ACP), established on December 19, 2014, is headquartered in Giao Long Industrial Park – Phase II, An Phuoc Commune, Chau Thanh District, Ben Tre Province, Vietnam.

ACP specializes in manufacturing and trading coconut products (including dried coconut meat, coconut milk powder, coconut milk, frozen coconut cream, coconut jelly, and coconut oil) for both domestic and export markets.

As of December 31, 2024, Asian Ingredients Corporation held a 73.42% ownership stake in ACP.