Masan MeatLife sets a spike in profits despite struggling with pandemic
15:54 | 23/06/2020 Print Article
Masan MeatLife targets a spike in profit as its parent company Masan Group has been submerged in losses due to the COVID-19 deadlock.
|Masan MeatLife is targeting double-digit revenue growth for 2020 |
Masan MeatLife (UPCoM: MML) has just published the documents for its 2020 shareholders' meeting. Based on these papers, the company hopes to get VND16-18 trillion ($695.65-782.6 million) in net revenue, up 16-30 per cent on-year. Moreover, the after-tax profit is forecast to reach VND200-500 billion ($8.7-21.74 million) this year, up 1.7-4.3 times over the same period last year.
Of this, the meat earnings are estimated to occupy about 20 per cent of the total net revenue. Meanwhile, animal feed will stay on the rise thanks to the huge demand for breeding.
The spike in demand and worries over a shortage of pork has given a leg up to prices, benefiting companies in the industry.
In the first quarter of 2020, Masan MeatLife saw a 6 per cent on-year increase in revenue with VND3.397 trillion ($147.7 million), of which pork made up about 8 per cent or VND278 billion ($12 million). However, due to a 57 per cent increase in financial costs and a 31 per cent soar in sales expenses, the company recorded a 60 per cent plunge in after-tax profit to VND14 billion ($608,700).
In 2019, Masan MeatLife saw VND13.799 trillion ($600 million) in net revenue and VND115 billion ($5 million) in net profit. Additionally, the company is waiting for approval to issue 2.6 million bonus shares at VND10,000 (43.48 US cents) per stock. The timeline of the issuance is forecast to fall this year or before May 2021.
The earnings from the issuance will be used to raise the charter capital and supply liquid capital to the company.
Under the pressure of COVID-19, Masan Group also reported a loss of VND78 billion ($3.39 million) in the first quarter of this year.