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Company Quarterly Earnings Update – QNS VN – Q4 2024
Summary of 2024 results and outlook of Quang Ngai Sugar JSC (QNS VN)
- Net revenue grew 2.2% y/y to VND10,243bn, contributed by nut and soymilk (40.7%), sugar (38.5%), and other segments (biomass, confectionery, beer, and mineral water). In the sugar sector, QNS expanded sugarcane fields by 22.4% y/y to 31,000 ha. However, high global sugar prices and tariffs made raw sugar imports inefficient for RE production, making QNS shift to refining only local sugarcane. This reduced RS sugar output, lowering sales volume 6.9% y/y to 189,520 tons. A 4.8% rise in average selling price softened the sales decline to VND3,939bn (-2.5% y/y). In the nut and soymilk sector, Q4 sales rebounded after Typhoon Yagi. New nut-based drinks, priced competitively vs. competitors’ products, reached double-digit growth from a low base. FY sector sales rose 4.3% y/y to VND4,174bn. Other sectors grew 7.5% y/y.
- Net profit rose 8.9% y/y to VND2,377bn, with sugar contributing 51.5%, nut and soymilk 35.0% and other segments 13.5%. Gross margin improved from 33.4% to 34.0%, as higher sugar margins offset nut and soymilk’s lower margin due to the high-priced soybean purchased from 2023, rising input costs (sugar and packaging).
- For 2025: In the sugar sector, declining global sugar prices in late 2024 enabled QNS to resume raw sugar imports for RE production, improving efficiency. Sales volume is forecasted to be driven by expanded cultivation and resumed RE production. However, an expected lower selling price due to global sugar balance shifting from deficit to surplus will slightly temper revenue growth . In the nut and soymilk sector, QNS’s affordable nut-based drinks continue to attract consumers. Sugar’s gross margin declines due to lower selling prices, while nut and soymilk’s margin improves on lower soybean costs as the company secured favorable contracts.
- Vietnam’s sugar import tariffs, set to expire in June 2026, are likely to be extended. In late 2024, the Vietnam Sugarcane and Sugar Association proposed an extension to the Ministry of Industry and Trade to support local farmers and producers while ensuring supply stability. Maintaining tariffs would further strengthen national sugar self-sufficiency. With a typical six-month approval process, we will closely monitor developments
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