Bitter 1H for Vietnam’s largest shrimp firm

The country’s largest shrimp company’s first quarterly loss since its listing in 2007 has spooked many investors.

In the first six months of the year, Minh Phu Seafood Corporation (MPC) achieved an accumulated profit after-tax of VND 60.97 billion (USD 2.9 million), down 28.6 percent compared to the same period of 2011. However, its second quarter’s result disappointed investors as the company recorded an after-tax loss of VND 2.29 billion (USD 109,000).??

The firm is in a pickle as its financial costs have increased sharply and its outstanding loans mount to VND 4 billion (USD 190.5 million). The company is incurring borrowing interests on investments in Minh Phu-Hau Giang Factory, Loc An Company and Hoa Dien Company, which have not generated profits.??

Due to exchange rate fluctuations, Minh Phu borrowed in local currency instead of U.S. dollar, and faced crippling 16 percent interest rates.

Click here to read the full story from Vietnam Investment Review >

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