The PAN Group sets high growth target for 2024 despite challenges
The PAN Group sets high growth target for 2024 despite challenges
The PAN Group JSC expects to achieve net revenue of VND14.7 trillion ($612.5 million) and after-tax profit of $36.75 million in 2024, an increase of 12 and 8 per cent on-year, respectively.
If these the targets are achieved, the company will maintain a profit distribution plan with a cash dividend of 5 per cent.
This information was released at the 2024 AGM held in Hanoi on April 26.The Pan Group is a leading company in Vietnam that provides high-quality agriculture and food products to domestic and international markets.
The company has set an after-tax profit target for its parent company to reach $18.6 million this year, an increase of 10 per cent on-year, which would be a new record.
Consolidated revenue in the first quarter of the year was VND3.46 trillion ($144.16 million), up 36.7 per cent on-year. Besides this, consolidated after-tax profit increased by 58 per cent to $7 million. After-tax profit of the parent company rose 109 per cent to $3.48 million.
“2024 is anticipated to continue posing numerous challenges for business operations, as macroeconomic conditions such as exchange rates, interest rates, and credit continue to experience unpredictable fluctuations. These factors could adversely affect the expansion of our business activities. Inflation and interest rates in key export markets, such as the United States and EU, remain high, resulting in an uncertain recovery of consumer demand and order placements from these markets,” said Nguyen Thi Tra My, CEO of The PAN Group.
“Meanwhile, the domestic market is also slowly recovering after facing significant challenges in the past two years. As a result, company business plans for 2024 are being developed with a certain level of caution,” she added.
The group's strategic direction in 2020-2025 is to develop core production capacity in each business segment on existing foundations, while mergers and acquisitions (M&A) that focus on sound companies that are suitable for its business lines and development strategies.
The group's M&A and investment strategy is to focus resources on ongoing projects that enhance internal production capacity, while investing and processing M&As to increase the ownership ratio in its subsidiaries.
In 2023, The PAN Group achieved 87 per cent of its revenue plan due to the negative impact of the economic recession and inflation in some major sectors, especially seafood exports. On the positive side, the group exceeded its profit plan.
The group was able to maintain its profit margin thanks to its strong competitive advantage when focusing on deep-processed products with traceability and high-profit margins. The group's market share is mainly concentrated in demanding export markets such as the EU and Japan. Profit after tax of the parent company exceeded the target by 1.2 per cent.
