Binh Thanh, Vietnam-based pangasius exporter International Development & Investment Corporation (IDI), is predicting record profits this year thanks to low-priced inventory and high demand in global markets.
I.D.I’s sales value in 2021 dropped to VND 5.7 trillion (USD 251.4 million, EUR 229 million), down 10 percent from 2020. But its net profit last year rose 34 percent year-on-year to VND 143.3 billion (USD 6.3 million, EUR 5.7 million).
This year, the company sets its sales value target at VND 8.3 trillion (USD 364.5 million, EUR 332 million), up 45 percent from 2021, I.D.I said in documents prepared for its annual stakeholders meeting, taking place in April. The company said it expects to earn a net profit of VND 900 billion (USD 39.5 million, EUR 36 million) in 2022, six times higher than its net profit in 2021.
The company’s ambitious sales and profit targets this year are based on the sharp increase in pangasius prices and high global demand for the species – particularly in the U.S. and Latin America – according to I.D.I. Chairman Le Thanh Tuan, NDH news site reported 24 March.
The company has raised its production capacity to be able to meet the strong recovery in demand in its major markets, especially in Brazil and Mexico, where it holds a significant market share. So far, I.D.I. has already signed contracts to export its products through the end of Q2 2022.
The company has an inventory of products worth VND 1.4 trillion (USD 61.4 million, EUR 56 million) which was processed when material pangasius prices were as low as VND 17,000 to VND 18,000 (USD 0.75 to USD 0.79, EUR 0.68 to EUR 0.72) per kilogram, Tuan said. With the current material price of pangasius currently sitting at roughly VND 30,000 (USD 1.30, EUR 1.20) per kilogram, I.D.I. anticipates the selling through of inventory will result in a significant contribution to its profit target for the year.
Photo courtesy of I.D.I. International/Facebook
