Facing many difficulties due to COVID-19, Nafoods Group still expects high growth in the third quarter of 2021

According to Nafoods Group Joint Stock Company (HoSE: NAF), in the third quarter of 2021, the total revenue of the whole system is estimated at VND 412 billion, up 46% over the same period; net profit is estimated at VND 20.5 billion, up 52%.

Cumulative revenue within the first nine months of 2021 is estimated at VND 1,207 billion, up 31% over the same period. Cumulative net profit in 9 months is estimated at VND 60.5 billion, up 19%.

Thus, compared to the plan of VND 1,500 billion in revenue and VND 76 billion in profit after tax set at the beginning of the year (up 23% and 24% respectively compared to the implementation in 2020), Nafoods has completed more than 80% of the plan only after nine months.
According to the latest information from the company, in Q3, Europe is still the key market, contributing the most to the company’s revenue. The industrial product groups continued to maintain positive growth, with key products such as passion fruit, dragon fruit, mango, pineapple. Meanwhile, dried products and nutritional nuts have officially penetrated the supermarket channel in the Russian market, promising to bring high and stable sales for the company in the near future. Notably, the seedling business set a new record in reaching the 2021 plan after only eight months.

This is a very positive result, a recognition of the best efforts of the Board of Directors, staff, and employees of the whole company in the context of the 4th pandemic wave in Vietnam starting from Q2/2021 caused by the Delta strain. This wave is considered the fiercest in the past two years, severely affecting the economy and production activities of Vietnamese enterprises and Nafoods, seriously disrupting production supply chains. Supply and transportation of raw materials from raw material areas to production sites face many difficulties due to the prohibition of movement between regions and localities. The strict application of social distancing measures disrupted factory production activities due to labor shortages. Customs clearance operations at export ports cannot operate normally. The shortage of vacant containers is still serious, and logistics costs have skyrocketed, making it difficult for exporters like Nafoods.

The above results were obtained because Nafoods quickly came up with a suitable production and business scenario to respond to all situations caused by Covid-19. Measures to cope with Covid-19 such as “5K and three-on-spot solution” were implemented drastically and synchronously, ensuring the safety of workers while fighting the epidemic and maintaining production and business. In particular, comprehensive digitization application is one of the right directions of Nafoods over the past period.
(“5K” in Vietnamese are facemask, disinfection, distance, no gathering, and health declaration; “three-on-spot solution” are having meals, resting, and working on the spot.)

Determining: “Digital transformation is an important and key factor that needs to be promoted in production and business in the period of facing the pandemic.” Up to now, at Nafoods, more than 30 modules have been completed and put into operation and used for professional activities in departments. This module system is built based on practical needs and recommendations of specialized departments combined with the general requirements of the system. Thanks to the early and synchronous implementation so far, the comprehensive digitization activity in the Nafoods system has initially shown positive signs and brought about clear efficiency, saving time, costs, and human resources in business operation and production of the whole system. The integration, statistics, and management of objective data with specialized tools and software have helped every department and division, from business, logistics, planning, coordination, procurement to personnel administration, finance, and accounting, to get an overview easily but still ensure the details. Thereby the management can make the right decisions timely.

In parallel with production and business development, community support is also in Nafoods Group’s general direction. In the first nine months of the year, especially in Q3/2021, Covid-19 turned life upside down, causing many losses to society. Nafoods, with the desire to serve the community, and uphold social responsibility, has contributed a part of “small flame” to support the people of the country in the fight against the Covid-19 pandemic. The company organizes many meaningful volunteer programs in many different localities. Hundreds of meals have been meticulously prepared by Nafoods, divided into several batches, and delivered to the frontline forces who fight the pandemic and people who have to isolate for many days. In addition to heart-warming meals during the pandemic wave, Nafoods quickly distributed 100 gifts of rice and cash to people in Hoa Khanh Tay commune, Duc Hoa district, Long An province – where Nafoods Southern Joint Stock Company/Nafoods Group company operates.

Entering Q4, despite the complicated and unpredictable pandemic situation, with the results achieved so far, and 95% of workers at factories and facilities vaccinated against Covid-19 with at least one shot, Nafoods is confident in completing and surpassing at least 10% of the announced revenue and profit targets for 2021. Nafoods will continue to apply the digital transformation process thoroughly; proactively regulate and collaborate production, business, and operation to best meet all customer needs; and ensure production plants operating with maximum capacity in the remaining months of 2021.