Sugar firms get a taste of sweeter future

The company had set at revenue target of $93 million and a pre-tax profit target of $4 million at its most recent AGM, up 22 per cent in revenue and 267 per cent in profit on-year.

The company sells to more than 20 countries, including major markets such as the US, Japan, and the Middle East.

According to Lasuco chairman Le Van Tan, "Late in the previous fiscal year, we took the initiative to moderate our sales plan to ensure a balance between consumption and storage during peak months." Lasuco expects to see over $105 million in revenue this fiscal year.

Meanwhile, Son La Sugar JSC is targeting $44.1 million in revenue and $5.78 million in post-tax profit for the same period.

In the Q1 of this current fiscal year, the company saw a 26 per cent jump in revenue on-year, exceeding $18 million, and a 47 per cent hike in post-tax profit, bringing in over $4.2 million.

Thanh Thanh Cong-Bien Hoa JSC (SBT) is expecting $870 million in revenue, down 17 per cent on-year, and $35.8 million in pre-tax profit, up 18 per cent.

SBT earned more than $268 million in revenue for Q1, equal to just under 31 per cent of its revenue target for the full year, and $10.7 million in pre-tax profit, representing 30 per cent of its full-year target.

The company is set to expand its growing areas by an additional 19 per cent in a move to help it achieve its target of 90,000ha by 2025.

Unlike the other firms, Quang Ngai Sugar JSC (QNS) ends its fiscal year on December 31 every year.

In the first 10 months of this year, the company earned over $371 million in revenue, up 24 per cent and more than $80 million in pre-tax profit, giving the company a boost of 72 per cent on-year.

The sugar sector has become a key driver for economic growth, with net revenue doubling since last year, amounting to around $150 million, and net profit quadrupling to just under $36 million.

According to Hanoi-based DSC Securities, the selling price of sugar plants currently stands at $1.09 per kg, a more than 40 per cent jump compared to the beginning of the year.

Imported sugar accounts for around 66 per cent of supply, ensuring that the price in the domestic market is likely to stay at a high level to align with the global markets, where the price currently hovers around $0.27/lb, the highest it has been in the past 10 years, amid fears over diminishing supply.

Supply from two key sugar markets -India and Thailand - has been affected recently due to the El Niño phenomenon, which many experts see as the main factor pushing up prices in the global market.

The Vietnam Sugarcane Association estimates that the domestic sugar supply for the 2023-2024 fiscal year could reach one million tonnes, up 10 per cent on-year, as the local climate might be more favourable compared to other Asian countries.

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