Nam Viet Seafood: Reported a 25% decrease in profit in the second quarter, a sudden increase in selling expenses

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Due to the increase in selling expenses by 137%, mainly from freight and transportation fees, the profit after tax of Nam Viet Seafood decreased by 25% over the same period, reaching nearly 24 billion dong.

After the first 6 months of the year, Nam Viet Fisheries achieved about 45.6% of the revenue target and 39.6% of the year’s profit before tax plan.

Nam Viet Seafood Joint Stock Company (Navico; Code: ANV) has just announced its consolidated business report for the second quarter of 2021, with net revenue of VND 1,074 billion, up 22% over the same period thanks to increased sales volume. However, the company’s profit after tax was only nearly 24 billion dong, down 25% compared to the same period last year.

The main reason was the sudden increase in selling expenses by 137% (mainly due to a sharp increase in freight and transportation fees), on the other hand, a sharp increase in financial expenses by 42%.

Not only Nam Viet, many seafood processing enterprises are also affected by the increase in freight rates. The reason for the rapid increase in freight rates is due to skyrocketing demand, lack of containers, congestion at ports, lack of ships as well as lack of workers at the port.

Accumulated in the first 6 months of the year, Navico achieved 1,788 billion dong in revenue, a slight increase over the same period. Profit before tax reached 99 billion dong, up 5% and 10% respectively over the same period.

In 2021, Nam Viet sets a target of 3,900 billion VND in revenue and 250 billion VND in pre-tax profit. Thus, after the first 6 months of the year, the Company has achieved about 45.6% of the revenue target and 39.6% of the year plan of profit before tax.

Regarding the financial situation, at the end of the second quarter, Nam Viet’s total assets increased by about 4% compared to the beginning of the year to more than VND 5,044 billion. In which, inventory reached 1,915 billion dong, up about 1% compared to the beginning of the year and accounted for nearly 38% of total assets.

Short-term financial investment reached 519.5 billion dong, an increase of nearly 62% compared to the beginning of the year, accounting for about 10% of total assets. In which, mainly deposits with terms of less than 12 months with a total value of 513 billion dong used to secure loans.

Total liabilities of Nam Viet reached VND 2,622 billion, of which financial debt reached VND 2,229 billion, up 21% compared to the beginning of the year and equal to 92% of equity. By the end of the second quarter, equity reached more than 2,421 billion dong, of which share capital was 1,275 billion dong, undistributed profit after tax was 1,152 billion dong.

On the stock market, ANV shares are trading around the low price range of VND 25,000-28,000/share.

Source: tinnhanhchungkhoan.vn – Translated by fintel.vn