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Quang Ngai Sugar (QNS VN) – H1 2025 – Nut Drink Growth Offsets Sugar Headwinds
Summary of H1 2025 results and outlook of Quang Ngai Sugar JSC (QNS VN)
- Net revenue edged down 2.2% y/y to VND5,225bn, as lower sugar sales offset growth in Nut-based drinks and soymilk. Segment mix: Nut-based drinks & Soymilk 44.3%, Sugar 32.3%, others 23.4%. Nut-based drinks & Soymilk’s sales grew 5.8% y/y on higher volume and better contribution of new nut-based products like Green Soy and Veyo, launched in 2024. Growth was driven by stronger promotions, and wider modern trade presence despite high competition. Sugar sales fell 22.6% y/y, with volume down 18.2% and selling prices 5.5% lower, similar to sector trends. RS & RE sugar sales temporarily declined from rising duty-free High-Fructose Corn Syrup imports (HFCS, 48.2% of sugar imports vs. 36.1% in 2024). Additionally, from late Q1/2025, with new stricter regulations, small retailers must shift from fixed to revenue-based taxation and other requirements on reporting standards and tax code. This transition temporarily prompted distributors and retailers to delay new purchases and focused on clearing inventories.
- Net profit declined 23.3% y/y to VND938bn, as gross margin held steady, but SG&A surged 58.6% to VND619bn, reflecting stronger promotions and higher selling costs amid intensifying competition of local brands (Vinamilk, TH True Milk, LOF), in addition to the launch of Vinasoy Cereals, relaunch of Veyo products and higher selling costs to expand in modern trade channels like BachHoaXanh, WinCommerce, Kingfoodmart.
- H2/2025 net sales are forecast to rise from growth in Nut-based drinks & soymilk, sugar restocking and return of RE sugar sales. For Sugar, Vietnam Sugarcane and Sugar Association (VSSA) has petitioned the government for HFCS taxation given health concerns, citing precedents in the U.S., Mexico, and Europe. Additionally, as distributors and retailers resume purchases after adapting to new regulations, QNS is set to restart RE sugar sales. Amid local supply shortages, its entire 128,306-ton output is expected to be absorbed in H2, lifting 2025 sugar sales. Despite higher sales, H2’s net profit is projected to ease on lower sugar margins and financial income, taking FY2025 net profit to decrease year-over-year.
- Outlook 2026: The MoIT’s August 2025 relaunch of the anti-dumping probe on Thai sugar is expected to extend the tariff, with a final decision by Q2/2026. In Nut-based drinks & soymilk, new products continue growing and boosting sales.
Interested in QNS? Click here to read more of our previous analysis on QNS’s quarterly earnings.
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