Seafood exporter Minh Phu suffers $4.1M loss in Q1
Minh Phu Seafood, one of the country’s biggest shrimp processors, reported a loss of VND95 billion ($4.1 million) in the first quarter, ending its seven-year profitability streak.
Its revenues fell by half year-on-year to VND2.1 trillion.
The gross profit margin almost halved from over 11% to less than 6%, while interest on borrowings nearly tripled, contributing to the huge loss.
In the comparable period last year it had earned profits of VND100 billion.
For the full year it targets revenues of VND18 trillion and profits of VND1.1 trillion.
Last year profit growth was in double digits and the highest in a decade.
According to Agribank Securities JSC, the results of shrimp export companies, including Minh Phu, are bleak because demand in key markets such as the U.S. and EU was weak during the quarter.