Quang Ngai Sugar Company announced that sales increased by 73% in 2023, with revenues exceeding 4.04 trillion VND, more than doubling the company's 2022 figures. Its gross profits were 3.22 times higher in 2023 than the previous year, reaching nearly 1.21 trillion VND.

The company stated that consumer purchasing power had not yet fully rebounded following the pandemic, resulting in reduced consumption of products such as milk, mineral water, beer, and candy. However, profits in these categories remained relatively stable due to cost control efforts.

"The Quang Ngai Sugar Company has invested in developing raw material areas for industrial production to increase sugarcane productivity and quality," said Vo Thanh Dang, the company's general director. "The sugar production line is now operating steadily, helping reduce costs and lower product prices."

Dang also acknowledged that trade defence measures and effective control of smuggled sugar products had contributed to the sector's efficient performance.

Thanh Thanh Cong-Bien Hoa, another major enterprise in the sugar industry, also experienced increased revenue and market share.

In Q4 2023, the company's revenue reached 7.02 trillion VND, while its profit margin soared from 7.6% to 10.6%, resulting in a 40% increase in gross profit.

Thanh Thanh Cong-Bien Hoa attributed this improvement in gross profit margin to a shift in its agricultural value chain revenue structure. The company's net profit in Q4 2023 reached 142 billion VND, 50% higher compared to the same period in 2022.

Shareholders have yet to reap the rewards of these reported profit increases. The share prices of Quang Ngai Sugar (QNS), Son La Sugar (SLS) and Thanh Thanh Cong-Bien Hoa (SBT) have all decreased in the last six months.

Global sugar prices have been on a downward trend since November 2023. They declined to 20.5 US cents per pound at the end of December 2023, a 21.3% decrease compared to the beginning of the quarter.

According to Vietcombank Securities Company (VCBS), sugar prices in Vietnam dropped to 21,200 VND per kilogramme by the end of Q4 2023, but this was still higher than prices were at the start of that year.

Other sugar businesses have recently taken on higher levels of debt as they scaled up their business activities. These increases in debt are reflected in their listed share prices./.VNS