Masan MeatLife member Anco sees plunging profit
Masan MeatLife member Anco sees plunging profit
In the first half of 2019, Agro Nutrition International JSC (Anco), a member of Masan MeatLife, earned a revenue of VND832 billion ($36.17 million), down 18 per cent on-year, and collected a gross profit of VND44 billion ($1.91 million), down 72 per cent.
Explaining the decrease, Anco said that 2019 was yet another hard year for the pig feed market in Vietnam. Since 2016, the price of pig has been continuous falling and by the beginning of this year, the total pig population has not been replenished after the disease, and the whole livestock industry of the country has been wallowing in severe losses due to the African swine fever.
Regarding its financial activities, the company's revenue reached VND3 billion ($130,434), a sharp decrease of 98 per cent. This was because five subsidiaries of Anco were transferred to Masan Nutri-Feed in 2018, resulting in Anco receiving less profit from its subsidiaries.
As a result, in the first six months, Anco saw a loss of VND139 billion ($6.04 million) while the same period last year was VND141 billion ($6.13 million) in profit.
As of June 30, 2019, the company reached VND6.037 trillion ($262.48 million) in total assets, a sharp increase over the same period mainly due to the expansion of its investments, resulting in an increase of VND249 billion ($10.83 million) in prepayments to sellers, while simultaneously investments into the construction of new facilities increased by VND800 billion ($34.78 million – 203 per cent). In order to mobilise capital to finance its production expansion, Anco increased short-term loans toVND555 billion ($24.13 million), up 325 per cent, and increased long-term debts to VND401 billion ($17.43 million).
Anco was established in 2003, specialising in animal feed manufacturing. In 2015, 70 per cent of the company's capital was acquired by Masan. Along with Proconco, Anco is under Masan Nutri-Science (a company established by Masan in 2015).
According to the 2016 prospectus, as of September 30, 2016, Anco had nearly 2,000 first-class agents in 63 cities and provinces across the country. 30-40 per cent of Anco's distributors decide to renew their contracts after the term ends. Agency contracts usually last one year, the average time of co-operation with agents is six years. At the time, Anco owned 12 trademarks in Vietnam and five in Cambodia.
