Vietnam top rice exporter Vinafood II posts US$3.8 million profit in H1

This result helped the firm reduce its accumulated loss from VND918 billion (US$39.52 million) to VND830 billion (US$35.73 million).

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Vietnam's top rice exporter Vietnam Southern Food Corp (Vinafood II) posted pre-tax profit of VND88.1 billion (US$3.79 million) in the first six months of 2018, compared to a loss of VND118 billion (US$5.08 million) recorded in the same period of last year, stated the company's financial statement. 

In the January - June period, the company's revenue reached VND7.44 trillion (US$320.35 million), up 68% year-on-year, while gross profit margin increased by over three times year-on-year to VND659 billion (US$28.37 million). 

Vinafood 2 also recorded income of VND71.3 billion (US$3.07 million) from financial activities, up 2.2 times year-on-year, and financial expenses of VND78.1 billion (US$3.36 million), up 11% year-on-year. 

Notably, sale expense saw an increase by 2.5 times year-on-year to VND469 billion (US$20.19 million) and administrative expense declined by 10% to VND88.2 billion (US$3.8 million). 

As of June 30, Vinafood II's total asset value stood at VND10.13 trillion (US$436.22 million), up 40% compared to the beginning of the year. 

Meanwhile, the company's deposits at banks increased from VND635 billion (US$27.33 million) to VND2.85 trillion (US$122.7 million), mainly thanks to proceeds from the initial public offering (IPO) in March and higher short-term debt. 

The statement showed that Vinafood II's receivables (both short- and long-term) were VND2.3 trillion (US$99 million), fixed assets of VND1.95 trillion (US$83.93 million), inventory VND1.89 trillion (US$81.35 million) and payables VND6.18 trillion (US$266 million), up 84% against the beginning of the year. 

The rice exporter's equity as of June 30 climbed 2.3% compared to the beginning of the year to VND3.94 trillion (US$169.62 million). 

In March, Vinafood II raised VND1.16 trillion (US$51 million) from selling out 114.83 million shares or a 22.97% stake on offer in its IPO with the average price of VND10,101 (US$0.44).

Vinafood II's charter capital is now VND5 trillion (US$220.51 million), equivalent to 500 million shares. Under the current plan, the government holds 255 million shares, representing 51% of its charter capital. The Ministry of Agriculture and Rural Development will represent state ownership in the company after the equitization. 

Vinafood II specializes in trade, food import and export, processed food, agricultural products, and storage. The company currently owns a distribution system covering the southern provinces of Vietnam.