With robust nine-month growth, the PAN Group is on track to meet its 2024 goal

On October 22, The PAN Group Joint Stock Company (HSX: PAN) released its consolidated financial statements for third quarter and the first nine months of 2024. The results showed strong growth, marking the highest quarterly performance to date.

Continued strong growth in revenue and profit

In Q3 2024, the Group recorded consolidated net revenue of VND 5,083 billion, up 37% year-on-year. Profit before tax, after tax, and net income attributable to the parent company co's shareholders also grew significantly by 66%, 78%, and 89%, respectively, compared to the same period last year.

For the cumulative nine months of 2024, the revenue and net income for the parent company's shareholders reached VND 11,917 billion and VND 363 billion, reflecting growth rates of 32% and 80.6% respectively.

Regarding Q3 revenue structure by business segment, Aquaculture contributed 59%, Agriculture 28%, and Packaged Foods 13% to consolidated revenue.

Agriculture Segment:

Revenue in the Agriculture segment continued to grow robustly at 20%, driven by a 19% increase in agrochemicals and a 17% rise in Crop seeds and rice, along with the consolidation of revenue from Atani JSC, PAN Farm's new subsidiary.

Profit before tax in this segment doubled year-on-year, reaching VND 263 billion, with contributions from seeds and rice at VND 39 billion (+24.5% YoY) and agrochemicals and fumigation at VND 205 billion (+146% YoY).

The seed segment has been effectively leveraging new proprietary products with good profit margins, boosting market share. The agrochemical and fumigation segment maintained its impressive growth from core operations, with a 36% increase in after-tax profit compared to the same period last year. Additionally, VFC recognized extra profit from resolving a joint venture contract dispute at Hai Yen Co., Ltd., as per the announcement by the People's Court of Khanh Hoa Province on August 29, 2024.

Aquaculture Segment:

With a 56% annual increase, this area was the biggest driver of revenue growth, indicating a rebound in export orders for pangasius and shrimp in Q3. Volume was the primary driver of growth, but price improvement was more gradual.

The sluggish rebound in selling prices was the primary reason for the 7% year-over-year increase in the aquaculture segment's earnings in Q3. Furthermore, allowances for two ongoing anti-dumping and anti-subsidy cases were to be set aside for shrimp shipments to the U.S. market. However, the increase in output and orders is encouraging for a strong comeback in the near future.

Packaged Foods Segment:

Revenue from the packaged foods segment increased by more than 12%, which was consistent with growth in other important business lines, such as confectionery (+12%), nuts and snacks (+13%), and fish sauce, which had single-digit growth. Although still on a smaller scale than other products, coffee sales almost tripled annually.

This segment's profit before taxes rose to VND 65 billion, a 48% year-over-year rise. Restructuring the product line to concentrate on fresh cakes and gummy sweets with higher profit margins and efficient raw material cost control allowed confectionery to have a 31% profit rise, surpassing the 12% revenue growth.

Meanwhile, the nuts and dried fruit segment achieved a pre-tax profit of VND 17 billion in Q3 (+146% YoY), benefiting from low-cost inventory accumulated earlier, leading to improved profitability

In Q3 2024, PAN's net income attributable to parent shareholders reached VND 187 billion, up 89% year-on-year. In addition to contributions from the business segments mentioned above, the Group's financial activities also contributed to profit growth for parent co's shareholders.

Approaching Annual Targets

The strongest nine-month business performance in the Group's history was the consequence of the steady, high growth from core business operations that continued from Q1 to Q3, as well as the profit from the completed investment recognition in VFC. (Core business operations generated record-high nine-month profit growth, surpassing 70%, even without the additional profit recorded at VFC.)

Due to these outcomes, the Group has achieved 81% of its full-year goals for net profit attributable to parent shareholders and revenue.

Given that Q4 is customarily the busiest business quarter for all significant company segments, PAN Group anticipates further robust growth in its full-year business results for 2024.