Vedan International (02317.HK) announced that its interim performance for the six months ending on June 30, 2024, with a revenue of $0.185 billion, a decrease of 2.0% compared to the same period last year; the company's attributable surplus to owners reached $8.331 million, a turnaround from a loss of $1.468 million in the same period last year, with a basic earnings per share of $0.55. The interim dividend is expected to be $0.273 per share.
The decline in revenue is mainly due to the slowdown in market conditions and demand. Among the group's main products, the sales prices and revenue of monosodium glutamate products have declined due to slowing consumer market demand and intensified competition. However, energy costs have declined compared to last year, resulting in an increase in gross margin for the first half of this year compared to the same period last year. Modified starch has experienced a decline in sales volume and revenue compared to the same period last year due to the slowdown in the European and American export market. Starch sugar, on the other hand, has increased sales volume and revenue due to increased orders from European and American customers after depleting inventory last year. Specialized products, affected by the weak economy, still have weak demand. The group has adjusted prices to increase sales volume, resulting in a slight decrease in revenue compared to the same period last year.
Hydrochloric acid revenue decreased compared to last year due to the sluggish market demand and continued decrease in average selling price. However, costs have declined significantly due to lower raw material and energy costs, resulting in an improvement in gross margin compared to last year. The focus of the fertilizer and fodder products is on integrating distribution channels and adjusting product structures, aiming to develop high-margin products. In addition, other products such as coffee and bulk ingredients in the group have seen an increase in revenue compared to the same period last year due to the resumption of domestic consumption in China after the lifting of the epidemic in 2023.
