In the fiscal year 2023 – 2024 (from July 1, 2023 – June 30, 2024), many sugar industry enterprises aim to achieve growing business results in the context of the world facing the risk of shortage. supply.
High growth profit plan
In the 2022 – 2023 fiscal year, Lam Son Sugar Cane Joint Stock Corporation (Lasuco stock code LSS) achieved revenue of more than 1,807 billion VND, pre-tax profit of 39.7 billion VND. At the 2023 – 2024 annual shareholder meeting, Lasuco aims to achieve revenue of 2,202 billion VND, an increase of 22% and pre-tax profit of 106 billion VND, an increase of 267% over the same period.
According to Mr. Le Van Tan, Chairman of the Board of Directors of Lasuco, at the end of the 2022 – 2023 fiscal year, the Company proactively regulates sales plans, ensures balance of consumption output and reserves, maintains inventory and maintains market share for peak months.
Lasuco products are currently present in more than 20 countries, including major markets such as the US, Middle East, and Japan. In the first quarter of the 2023 – 2024 fiscal year, Lasuco recorded revenue of 471 billion VND, an increase of 55%, profit after tax of more than 17 billion VND, an increase of 113% over the same period. This is the quarter that brought the best business results in the last 5 quarters.
Well-prepared raw material areas will be an advantage for Lasuco to make a breakthrough in the coming period. The enterprise sets a revenue target for the period 2023 – 2030 of VND 5,000 billion.
At Son La Sugar Joint Stock Company (stock code SLS), the plan for the 2023 – 2024 year is to achieve nearly 1,046 billion VND in revenue and 137 billion VND in profit after tax. At the end of the first quarter of the fiscal year, the Company recorded revenue of more than 430 billion VND, an increase of 26%; Profit after tax was more than 119 billion VND, up 47% over the same period.
Meanwhile, Thanh Thanh Cong – Bien Hoa Joint Stock Company (stock code SBT) sets a target for the 2023 – 2024 fiscal year to reach VND 20,622 billion in revenue, down 17%, but pre-tax profit of VND 850 billion, up 18%. compared to the same period. At the end of the first quarter of the fiscal year, SBT achieved revenue of 6,366 billion VND and pre-tax profit of 255 billion VND.
In the 2023 – 2024 fiscal year, SBT plans to expand the area of raw material areas by 16%, sugarcane output by 19%, aiming for the total area of raw material areas to reach 90,000 hectares by 2025.
Quang Ngai Sugar Joint Stock Company (stock code QNS) has a fiscal year ending on December 31 every year. At the end of the first 10 months of 2023, the Company achieved revenue of 8,800 billion VND, an increase of 24%; Profit before tax was 1,900 billion VND, up 72% over the same period. The sugar segment is the main growth driver, with net revenue doubling the same period, reaching 3,550 billion VND and pre-tax profit 4 times higher than the same period, reaching 850 billion VND.
Supply decreases, sugar prices may remain high
According to DSC Securities Company, the selling price of sugar mills recently reached about 26,000 VND/kg, an increase of more than 40% compared to the beginning of the year. Currently, imported sugar accounts for about 66% of Vietnam’s sugar supply, so domestic sugar prices will likely remain high and in sync with world sugar prices.
SBT expects that in the 2023 – 2024 period, domestic sugar prices may continue to increase along with the increase in world sugar prices, as well as the ability to control smuggled sugar in the near future. These factors will be a boost to help businesses in the sugar industry grow.
SSI Research believes that global sugar prices anchored at high levels will positively support the business results of sugarcane enterprises. Domestic sugar prices and increased consumption will continue to boost the profits of the sugar segment in the near future. Domestic sugar prices may continue to increase at least until the end of the second quarter of 2024. Imported sugar will account for more than half of domestic sugar supply in the 2023-2024 crop year, down from two-thirds in the 2022-2023 crop year.
