On April 27th, 2020, the General Congress of Shareholders of Western Food Export Processing Joint Stock Company (Westfood) officially took place in Hanoi.
The Congress approved the Report on production and business results in 2019 and business plan in 2020; Audited financial statements of 2020; as well as other issues under the authority of the General congress of Shareholders.
In the first half of 2019, especially in the second quarter, Westfood has achieved impressive profit results, exceeding the target and growing more than 40% in profit. However, in the second half of 2019, West food encountered many difficulties in purchasing raw materials because the South witnessed adverse weather and crop failures, resulting in the purchase price of many agricultural products in excess of the permitted level. The main product was pineapple with high price, sometimes doubling compared to the plan; mangoes are strongly competed from Chinese customers for purchasing with low ripeness compared to processing standards; At the same time, canned fruits are strongly competitive from Thailand due to lower raw material prices than Vietnam; … these factors made Westfood’s annual revenue decline and drag the whole year profit down. The total net revenue in 2019 reached VND 253 billion, down 12.7% compared to 2018, reaching 72% of the plan in 2019. Although the after-tax profit reached VND 7.42 billion, which only finalize 35% in comparison to the annual plan. However, that is the result of the efforts and determination of the Board of Directors as also all employees in all stages from manufacturing to transaction.
In addition to the reduction in revenue, in terms of domestic market, Westfood has started distributing products to large supermarket chains, expanding distribution channels as well as varied customers, optimizing all company’s resources. This assists strengthen the Westfood brand and open up new business opportunities for the company. The trial planting of MD2 pineapple has also recorded success. Westfood remains its way on investing in developing this project.
In early 2020, the whole world economic market was strongly affected by the impact of the Covid pandemic 19. Almost every country had to face an unprecedented severe crisis, Vietnam had an impact forcefully and directly, both demand side and supply side. Coping with the knotty situation of the raw material market and the current disease circumstances, in 2020, Westfood’s Board of Directors has set a target with net revenue of 331.03 billion dong, after-tax profit of 21.60 billion dong. Under this plot, Westfood retains concentrate on promoting resources for long-term development strategies such as investing, upgrading machines and equipment to enhance production capacity, developing new products to meet the needs of increasingly diversed markets. In order to minimize production interruption due to the seasonality of agricultural products, Westfood will promote the storage of raw materials, remaining broaden the MD2 pineapple nursery to expand its own material areas, creating a competitive advantage with businesses in the same industry. Sales & marketing strategies will be developed appropriately and flexibly at a good time to maximize revenue and profit, continue to promote market development, sales activities in key countries such as Japan, Korea, the USA and Europe; Besides, Westfood will also continue to bring the company’s products to the domestic market through large supermarkets such as Coopmart, Lotte, Emart, … and convenient chain stores such as Circle K, 7eleven. , …
2020 is probably the year of many transitions for Vietnamese economy in general and Westfood in particular, yet alongside the sustainable development strategy, the strong investment and the right and timely orientation from FIT holding company as also the determination of the Board of Directors and all employees will create the overall strength to help Westfood overcome all difficulties and challenges, gradually conquer the international and domestic market with good quality products, laying a solid foundation, making Westfood become one of the leading fruit processing and export companies in Vietnam, a reliable and reputable partner with international customers.
