PAN Group proposes additional share issuance, shareholders set for 50% total dividend

PAN Group proposes additional share issuance, shareholders set for 50% total dividend

For 2026, the group targets consolidated net revenue of VNĐ18 trillion, a 2 per cent increase, alongside pre-tax profit of VNĐ2.01 trillion and post-tax profit of VNĐ1.78 trillion.

PAN Group's 2026 annual general meeting held on Tuesday. — Photo courtesy of the firm

PAN Group unveiled an additional proposal at its 2026 annual general meeting on Tuesday offering shareholders a combined dividend package of up to 50 per cent following a strong earnings surge driven by its recent divestment from Bibica.

Chairman Nguyễn Duy Hưng told shareholders that the board would seek approval for a 20 per cent bonus share issuance sourced from equity in addition to the previously proposed 30 per cent cash dividend. The move comes as the group records a significant cash inflow after exiting its confectionery investment.

In 2025, PAN reported consolidated revenue of VNĐ17.6 trillion (US$695 million), up 9 per cent year-on-year, while post-tax profit reached VNĐ1.17 trillion marking modest growth. Profit attributable to parent company shareholders rose 10.5 per cent to VNĐ673 billion. Excluding one-off gains recorded in 2024, core earnings expanded by 17 per cent.

For 2026, the group targets consolidated net revenue of VNĐ18 trillion, a 2 per cent increase, alongside pre-tax profit of VNĐ2.01 trillion and post-tax profit of VNĐ1.78 trillion. Profit attributable to shareholders of the parent company is projected to jump 86 per cent to VNĐ1.25 trillion.

The earnings outlook is underpinned by the completed divestment of its entire stake in Bibica and Bibica Capital to Indonesia-linked Momogi Group Việt Nam. In the first quarter of 2026 alone, the parent company recorded pre-tax profit of VNĐ1.118 trillion and post-tax profit of VNĐ1.094 trillion, roughly 40 times higher than the same period last year, fulfilling 87.5 per cent of its full-year profit target.

Following the deal, PAN’s cash holdings rose to VNĐ2.06 trillion. The board has therefore proposed a 30 per cent cash dividend equivalent to VNĐ3,000 per share totalling approximately VNĐ627 billion, the highest payout ratio in 18 years and the largest dividend value in the group’s history.

Strategically, PAN said it would continue to strengthen its integrated agriculture-food ecosystem. While revenue contributions from Bibica’s packaged food segment will no longer be consolidated, the group expects this gap to be offset by growth in other subsidiaries, particularly in agriculture and fisheries.

The board also submitted a proposal to expand into real estate, aiming to unlock value from its existing land bank.

Addressing shareholder concerns over the timing of the Bibica divestment, Hưng reaffirmed PAN’s long-term investment philosophy of building and scaling businesses before exiting at the right moment.

“At a certain point, we realised PAN could no longer contribute significantly to the next phase of development – much like raising a child through university,” Hưng said.

The divestment allows PAN to refocus on its core strategy of agriculture, nutrition and health-oriented food products, segments aligned with long-term consumption trends rather than traditional confectionery.

On concerns about brand continuity, the group stressed that the Indonesian partner was carefully selected. Notably, the buyer does not operate an existing confectionery manufacturing base, ensuring that the acquisition is intended to build on Bibica’s platform rather than replace it.

The partner has also committed to preserving the Bibica brand and expanding its presence beyond the domestic market.

PAN described the transaction as swift, efficient and satisfactory meeting three key objectives: optimising value for shareholders, securing a capable strategic partner for the business and maintaining jobs and community stability where Bibica operates.

The deal, completed on March 27, was valued at VNĐ1.75 trillion, generating a disposal gain of VNĐ522.2 billion and dividend income of VNĐ660.9 billion prior to the exit.

As a result, PAN recorded financial income of VNĐ1.23 trillion in the first quarter, more than tenfold higher than the same period last year. This drove quarterly pre-tax profit to VNĐ1.118 trillion and post-tax profit to VNĐ1.094 trillion, the highest quarterly earnings in the group’s history. 

Bizhub