Vissan JSC, a popular processed meat brand in Vietnam, recorded a 13 per cent decrease in pre-tax profit on-year, with VND76.6 billion ($3.33 million) in the first half of the year.
|Vissan's sausage products are popular among Vietnamese consumers |
Accordingly, in the second quarter of 2021, the business recorded a revenue of VND1.12 trillion ($48.7 million), with after-tax profit of VND39 billion ($1.7 million), down 9 and 6 per cent over the same period. Gross profit margin improved from 19 to 22 per cent.
During the period, gross profit increased 5 per cent on-year to VND244.6 billion ($10.63 million), while selling expenses increased 9 per cent to VND155.7 billion ($6.77 million); general and administrative expenses increased 6 per cent to VND41.6 billion ($1.8 million).
Thus, although gross profit increased, due to a stronger increase in selling and administrative expenses, profit in the second quarter of 2021 still decreased by 6 per cent.
In the first half, Vissan's business revenue reached VND2.34 trillion ($101.74 million), after-tax profit was VND76.6 billion ($3.33 million), down 14 and 13 per cent on-year, respectively.
In 2021, Vissan set a target revenue of VND5.1 trillion ($221.74 million), equivalent to last year's performance, with pre-tax profit of VND180 billion ($7.83 million), down 12 per cent.
The company's pre-tax profit decreased 13 per cent on-year to VND94.6 billion ($4.1 million). With this, Vissan has completed 53 per cent of its annual profit target and 46 per cent of its revenue target.
Vissan's main revenue sources are fresh and processed meat. While the gross profit margin of processed meat decreased from 29 to 26 per cent, the fresh meat segment recorded an improvement from 10 to 15 per cent.
As a result, after deducting the cost of goods sold, Vissan earned VND493.5 billion ($21.46 million) in gross profit, down 6 per cent on-year.