The revenue and profit of 2022 increased approximately 50%: The impressive growth of The PAN Group continues

On January 30, 2023, the PAN Group Joint Stock Company (HSX: PAN) announced the unaudited consolidated financial statements for the fourth quarter and the full year of 2022. Despite facing challenges in the last quarter of the year, the consolidated business results of PAN for the full year of 2022 still showed impressive growth compared to 2021 and exceeded the profit plan. The Group recorded an increase in consolidated revenue and profit after tax of 48% and 51% respectively compared to the same period.

The fourth quarter of 2022:

The consolidated revenue of PAN in the fourth quarter reached VND 3,900 billion, an increase of 37.2% compared to the same period of 2022, while the after-tax profit decreased slightly from VND 278 billion to VND 235 billion (approximately 16%).

Indicator (Unit: VND million)	Q4/2022	Q4/2021	+/- %
Net revenue	3,907	2,847	37.2%
Gross profit	894	732	22.1%
Profit before tax	275	312	-12%
Profit after tax	235	279	-15.8%
Profit after tax attributable to shareholders of the parent company	131	175	-25%

Source: Consolidated financial statements for the Fourth Quarter of 2022, The PAN Group Joint Stock Company

The growth in revenue was mainly from the agrochemical and confectionery sectors as VFC reached VND 850 billion in revenue in the fourth quarter (+38.5% YoY) and Bibica reached VND 670 billion in revenue in the fourth quarter (+53% YoY). Additionally, the dried fruit and nut segment also experienced high revenue growth at 30% in the fourth quarter thanks to high demand during the holiday seasons and partially relaxed restrictions in the China and Hong Kong markets towards the end of 2022. The aquaculture sector, however, saw a slight decrease in revenue by 16% in the fourth quarter due to declining demand on the global market (US, EU).

The consolidated profit after tax in Q4 2022 decreased slightly due to a decrease in the profits of the major segments of aquaculture and seed. The gross profit margin was impacted by weakened consumer purchasing power (price cuts) and increased product costs (due to smaller order sizes).

The full year of 2022:

The consolidated net revenue for the year 2022 amounted to VND 13,600 billion, demonstrating a strong growth of 48% compared to the previous year 2021. This was achieved through the consolidation of VFC's full-year business results (which only merged for one month in 2022) and the internal growth in the core business segments, including aquaculture (+15%), confectionery (+47%), nuts and fish sauces (+20%). The revenue of VFC itself also experienced an increase of approximately 40% compared to 2021.

The consolidated after-tax profit for the year 2022 reached VND 774 billion, representing an increase of 51%, and the after-tax profit attributable to the parent company's shareholders reached VND 363 billion, growing by 23% year-over-year. This result exceeded the profit plan approved by the annual shareholders' meeting in 2022 (VND 755 billion for after-tax profit and VND 355 billion for after-tax profit attributable to the parent company's shareholders).

Indicator (Unit: VND million)	2022	2021	+/- %
Net revenue	13,663	9,249	47.7%
Gross profit	2,740	1,750	56.6%
Gross profit margin	20.1%	18.9%
Profit before tax	917	562	63.1%
Profit after tax	774	511	51.6%
Profit after tax attributable to shareholders of the parent company	363	296	22.5%

Source: Consolidated financial statements for the Fourth Quarter of 2022, The PAN Group Joint Stock Company

As for the revenue structure by main business sectors for the year 2022, the aquaculture sector contributed VND 6,300 billion (46%), the agricultural sector accounted for VND 4,900 billion (36%), and the food sector made up for VND 2,400 billion (17.9%). In terms of after-tax profit structure, the aquaculture sector contributed 42%, the agricultural sector accounted for 53%, the food sector made up for 18%, and offsetting for other expenses upon consolidation was -14%.

Given the forecasted market challenges in 2023, especially in the first half of the year, PAN will concentrate its resources in its core businesses to ensure sustainable growth. The growth drivers in the near future may come from leveraging strategic partnerships, continuing to grow in scale, and developing new products in the agrochemical sector. In the aquaculture sector, the over 500 hectares of aquaculture farms and the readiness of new factories for production will be the foundation for strong growth in production volume under the expected market recovery in the second half of 2023. Meanwhile, the restructuring of the sales system and product portfolio in the confectionery sector has proven to be effective and will continue to be strengthened in 2023.

In September of 2022, during a meeting with investors in Hanoi and Ho Chi Minh City, The PAN Group announced that 2022 marked a decade of its operation in the agriculture and food industry and it was ready for a new phase of rapid growth. The Group anticipates overcoming challenges in the early stage of 2023 and effectively exploiting opportunities for high growth if the market gradually recovers and improves in the latter half of the year.