PAN : agricultural and food products have expanded their footprint on the international market

At the 2023 Annual General Meeting of Shareholders of The PAN Group Joint Stock Company held on April 26, the CEO of The PAN Group, Ms. Nguyen Thi Tra My, presented several favorable outcomes regarding the export of agricultural and food products from the Group's member companies.

Notably, the nut snack product of Long An Export Processing Joint Stock Company (Lafooco) has achieved a significant milestone by becoming one of the top 10 best-selling cashew nut snack products on Amazon's e-commerce platform within just two weeks of its launch. Lafooco's revenue had been expanded in 2022 when significant markets such as Hong Kong (China) and China eased the lock-down at the end of the year, thereby assisting in the recovery of demand. In addition, Lafooco is receiving more orders from major supermarket chains in Japan and some Chinese customers. Consequently, Lafooco's revenue in 2022 reached VND 510 billion, an increase of 22.7% from 2021.

584 Nha Trang Seafood Joint Stock Company has completed the rebranding of 584 Nha Trang fish sauce in 2022. This not only helps to increase consumer awareness at domestic market, but also brings firms their first export orders to the US and Korea, assisting in market diversification. 584 Nha Trang's revenue increased by 24.1% in 2022 compared to 2021.

According to Ms. Nguyen Thi Tra My, Vietnam's coffee market has recovered after being severely impacted by the Covid epidemic for two years, although the recovery has been slow. As a result, the coffee distribution business of Golden Beans Coffee Joint Stock Company (the owner of the Café Shin brand) in the HORECA (restaurants, hotels) segments has not yet attained the desired results.

In this context, the company's diversification and promotion of sales activities in food chain stores, high-end supermarkets, and online sales channels on the domestic market continued to yield positive results. The company's export of processed coffee products to Europe, China, and Hong Kong, which are high-end markets with discerning coffee product consumers, also continued to show positive trends.

Prominently, Golden Beans has developed more premium products, including coffee dip sachets and cascara tea. Large distribution partners are interested in these products due to their convenience and coffee flavor retention. The continued pursuit and development of the product value chain, from high-quality inputs to finished goods, will continue to be a significant competitive advantage for the company's future business expansion.

In 2022, the production process at PAN-HULIC Joint Stock Company (PHJ), which specializes in flower export, has been completed, and the quality of flowers were thoroughly monitored. This helped to stabilize the output, which had achieved maximum capacity at the time. The share of Japanese customers has also climbed dramatically. For the first time since its establishment, PHJ had a net profit at the end of 2022. Although the scale is small, there are numerous potential growth opportunities, which is a premise for expanding the business scale.

Regarding the shrimp business, while the revenue from US market declined sharply, Sao Ta Food Joint Stock Company's revenue share in Japan increased significantly, from 28.1% in 2020 to 38.9% in 2021 and up to 43.8% in 2022. Deeply processed items had accounted for approximately 55% of total products exported to Japan.

Khang An Food Joint Stock Company (KAF) is another The PAN Group member and one of the company with the best advantage in shrimp and processed agricultural products. KAF now has an experienced management team, as well as a team of professional workers in high-quality shrimp processing and, in particular, processed agricultural products in various assortments. Deep-processed products from Khang An have garnered positive reviews from high-end customers in the United Kingdom, the United States, Japan, and Canada... The agricultural processing factory which is used specifically for exports products to Japan, is highly regarded. Khang An is also aggressively extending this kind of products into other markets, including Australia and Canada.

Under the influence of high inflation in 2022, KAF's primary markets are significantly impacted. In addition, the stronger USD has indirectly led to an increase in the cost of KAF's most important products on the Japanese market. Therefore, KAF recorded a modest profit in 2022 with a roughly 10% increase in sales compared to 2021.

The PAN Group's consolidated net revenue reached VND 13,655 billion in 2022, a 47.6% increase over 2021. Profit after tax for the year increased by 55% to VND 794 billion, while profit after tax for parent company shareholders increased by 26.3% to VND 374 billion. Compared to the business plan, revenue achieved 96% and net profit achieved 105% respectively. In terms of revenue and profit structure, aquaculture and agriculture are the two largest contributors to consolidated revenue, contributing 46% and 35%, respectively, with the remainder coming from packaged food. Geographically, the proportion of revenue derived from exports and domestic sales is roughly equal, at approximately 50 percent. In 2023, PAN aims for consolidated net revenue of VND 15,156 billion and consolidated profit after tax of VND 840 billion, an increase of 11% and 6%, respectively, compared to the results achieved in 2022.