PAN Group preparing for stronger growth
After years of preparations, the PAN Group is expecting a better performance in the months and years ahead.
The PAN Group on September 7 held an investors' meeting in Hanoi to discuss the future potential and opportunities for development in the months ahead.
Nguyen Thi Tra My, general director of the group, said it had finished its first phase of developing an ecosystem and the foundation for future development.
"We are ready to enter the next step of development and boom, aiming to grow fast and develop depth in our core businesses," she said.
From 2013-2018, PAN focused on growth based on mergers and acquisitions. Since 2019, the group has focused on in-depth development, investment, and production capacity increases. Since 2021, it has grown strongly in its core business lines.
Growth momentum continues
In the first three quarters of 2022, it made consolidated revenue of VND9.9 trillion ($430.43 million) and after-tax profit of VND537 billion, up 53 per cent and 132 per cent on-year, respectively.
Its gross profit margin rose 19 per cent on-year, compared to 16 per cent for the same period last year.
In terms of revenue structure, 52 per cent of the group’s revenue comes from fisheries, 35 per cent from agriculture, and the rest from consumer goods, confectionary, cashew, and fish sauce.
While revenue from agriculture ranks second, its profit accounts for 41 per cent. Fisheries contribute 35 per cent to the group’s total profit and the rest is from consumer goods.
With the last results, PAN fulfilled about 70 per cent of its whole-year revenue and profit targets. This year, it aims to make VND14.3 trillion in revenue and VND755 billion in after-tax profit. This fulfilment rate is higher than the 55-65 per cent in previous years.
The key areas for PAN’s revenue and profit growth in 2022 and 2023 are still agriculture and fisheries. Meanwhile, consumer goods are expected to enjoy higher growth in one to two years.
According to Nguyen Anh Tuan, PAN financial director, the group is preparing to increase its capital. It plans to issue an additional 83.56 million new shares while selling shares for existing stakeholders. It expects to receive VND1.56 trillion from the share issuance.
The company plans to use VND55 billion from the proceeds for investment in Long An Food Processing Export JSC; VND421.07 billion for Vietnam Fumigation JSC to increase its ownership from 41.98 per cent to 65.66 per cent; VND210.26 billion for Vietnam National Seed Group JSC to increase its ownership from 65.57 per cent to 80.35 per cent; and funds for several other companies.
Moreover, VND400 billion from the proceeds will also be used in M&A deals with new companies in the fields of agriculture and food to complete its value chain and diversify its products.