Amid the complicated developments of the Covid-19 pandemic, Nafoods Group Joint Stock Company (HOSE: NAF) still recorded positive net profit growth in the second quarter and first six months of 2021 – a record high Nafoods has achieved since its establishment.
With the closing of the second quarter, NAF’s net revenue reached more than VND 489 billion, up 41% over the same period, with gross profit at nearly VND 86 billion, up 21%.
During this period, financial revenue, mainly from deposit interest, was 3.5 times higher than the same period last year, reaching more than VND 7 billion. Moreover, financial and administrative expenses also decreased by 24% and 46%, respectively, over the same period.
Thus, with a 21% increase in gross and a profit of 3.5 times increase in financial revenue, although selling expenses increased significantly, NAF’s net profit increased by 34% over the same period, reaching more than VND 28 billion. This is also a new record in profit that Nafoods has achieved so far.
In the first 6 months of 2021, NAF’s net revenue reached more than VND 793 billion, up 25% over the same period, with net profit at more than VND 40 billion, up 8%.
The driving force for Nafoods to achieve this “unprecedented” result is the successful digitalization by Nafoods in business activities.
Specifically, Nafoods has started implementing digital transformation applications since the beginning of 2019 to help increase productivity and work efficiency for the whole Group, especially in the current complicated Covid-19 epidemic.
In terms of management, the Company has operated a management system that helps the Board of Management to monitor and manage task information, personnel data, etc. Orders are also digitized and integrated with data from sales, production, logs, etc., which shortens processing time in the supply chain by streamlining the communication between departments.
Besides, an automated financial system is also being built to help ensure accurate data and assist leaders in making timely decisions.
The most prominent development is the farm management information system – typical of the agricultural industry, which the Company is also prioritizing to complete the sustainable value chain.
According to Nafoods Group, entering 2021 – the first year of the new period 2021 – 2025, with the motto “Efficiency – Governance – Digitization,” Nafoods Group sets a positive business growth target for 2021, with VND 1,500 billion in revenue, up 23% and VND 76 billion in profit after tax, up 24%, compared to 2020.
So far, the Company has achieved 53% of the profit target for the whole year after passing the halfway point.
The scale of total assets of Nafoods continues to increase, up to VND 1604 billion. Notably, cash and cash equivalents increased 2.3 times at the beginning of the year, reaching more than VND 61 billion.
By reaching more than VND 63 billion accumulative profit at the end of the second quarter, Nafood Groups consistently maintains positive growth compared to the beginning of the year.