VHC – 14% NPAT-MI growth driven by profitability expansion - Earnings Flash

• VHC announced its Q1 2025 results with revenue of VND2.6tn (USD104mn, -7% YoY) and NPAT-MI of VND193bn (USD8mn, +14% YoY), fulfilling 18% and 13% of our respective full-year forecasts. While revenue saw a decline, NPAT-MI growth highlights underlying profitability improvements. As earnings trailed our projections, we see downside risk to our forecasts, pending further review.
• In Q1 2025, VHC's revenue decreased by 7% YoY, which was mainly led by a 32% YoY drop in sales of collagen and gelatin (C&G) together with a 4% YoY decrease in sales of frozen pangasius filets and related products (e.g., breaded fish, fish fat, fish meal, and feed). We    attribute the decline in revenue to the significant drop in pangasius filet sales volume (-22% YoY) based on AgroMonitor data. Nevertheless, the improvement in profitability was primarily driven by an increase in pangasius filet ASP by 8% YoY.
• Regarding export markets, VHC’s sales decreased across key markets, including the US (-5% YoY), China (-36% YoY), and Others (-11% YoY). The domestic market made the largest contribution to revenue in Q1 2025 (31% of total Q1 revenue).

VHC’s Q1 2025 results

Source: VHC, Vietcap forecasts (*Revenue breakdowns by market and product are based on VHC’s preliminary results, of which the total revenue figure is slightly different from the official number)

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