(Vote: DTCK) In the fiscal year 2023 - 2024 (from 01/07/2023 to 30/06/2024), many sugar cane companies aim to ...
(Vote: DTCK) In the fiscal year 2023 - 2024 (from 01/07/2023 to 30/06/2024), many sugar cane companies aim to achieve growth business results in the context of the world facing the risk of supply shortage.
The sugar cane industry faces strong competition, but it has promising prospects for development
According to Mr. Le Van Tan, Chairman of the Board of Directors of Lasuco, at the end of fiscal year 2022 - 2023, the Company is actively adjusting sales plans, ensuring the balance of consumption and reserves, Maintains inventory and maintains market share for peak months. For the year 2023-2024, Lasuco expects sales of favorable products, ensuring cash flow and revenues. If successful, the company can achieve a turnover of 2.5 trillion VND, focusing on importing raw sugar for processing.
Lasuco’s products are currently present in more than 20 countries, including major markets such as the United States, the Middle East and Japan. In the first quarter of 2023 - 2024, Lasuco recorded a turnover of 471 billion VND, up 55%, an after-tax profit of more than 17 billion VND, up 113% over the same period. This is the best quarter of the last 5 quarters.
A good preparation of the material area will be an advantage for Lasuco in order to make a breakthrough in the coming period. The company sets a revenue target of 5,000 billion VND for the 2023-2030 period.
For 2023-2024, Son La Sugar Cane Joint Stock Company’s objective is to achieve a turnover of nearly 1,046 billion VND and an after-tax profit of 137 billion VND. At the end of the first quarter of the year, the Company recorded revenues of more than 430 billion VND, up 26%; after-tax profit amounted to more than 119 billion VND, up 47% compared to the same period.
Meanwhile, Thanh Thanh Cong - Bien Hoa Joint Stock Company (stock symbol SBT) set itself a target of 20.622 billion VND revenue for the year 2023-2024, down 17%, but a pre-tax profit of 850 billion VND, up 18% over the same period. At the end of the first quarter of the year, SBT achieved a turnover of 6.366 billion VND and a pre-tax profit of 255 billion VND.
Over the 2023-2024 period, SBT plans to increase the area of raw materials areas by 16%, sugar cane production by 19%, towards the goal of reaching the total area of materials by 2025 to 90,000 hectares.
Supply declines, sugar prices may remain high
According to DSC Securities Company, the selling price of sugar mills recently reached around 26,000 vnd/kg, up more than 40% from the beginning of the year. Currently, imported sugar accounts for about 66% of Vietnam’s sugar supply, so domestic sugar prices are expected to remain high and in line with world sugar prices.
SBT expects that over the 2023-2024 period, domestic sugar prices will continue to rise in line with rising world sugar prices, as well as the ability to control smuggled sugar in the near future. These factors will drive the growth of sugar cane businesses.
The Vietnamese Sugar Cane Association estimates that the national sugar supply for the 2023-2024 season will reach 1 million tonnes, up 10% over the same period, as the national weather could still be more favorable than in other Asian countries.
SSI Research said high world sugar prices will positively support the commercial results of sugar cane companies. The increase in domestic sugar prices and volume of consumption will continue to boost the profits of the sugar segment in the near future. Domestic sugar prices could continue to rise at least until the end of the second quarter of 2024. Imported sugar will account for more than half of the national sugar supply in the 2023-2024 crop year, compared to two-thirds of the 2022-2023 crop year.
Via Tin nhanh chung khoan