QNS - Earnings beat expectations on solid sugar prices - Earnings Flash
  • 2025-01-22T00:00:00
  • Company Research
  • QNS released its 2024 results with revenue of VND10.2tn (USD407mn; +2% YoY) and NPAT-MI of VND2.4tn (USD95mn; +9% YoY), achieving 101% and 109% of our respective full-year forecasts. Revenue was in line with our forecast, while earnings exceeded our expectations due to strong sugar profitability. We see upside potential to our current projections, pending a more comprehensive review.
  • In 2024, sugar revenue declined 2% YoY, primarily due to a 5% YoY decrease in volume, partially offset by a 3% YoY increase in ASP to VND16,900/kg. Strong sugar prices contributed to a 1.6 ppt YoY expansion in this segment’s GPM. Other businesses, primarily biomass, also experienced robust gross profit growth of 39% YoY, benefiting from ample sugarcane bagasse input from the sugar segment. 
  • Soy milk revenue increased 4% YoY, driven by 6% YoY volume growth. However, soy milk’s GPM contracted 3.5 ppts YoY in 2024, mainly due to (1) promotional discounts for its new plant-based milk SKUs, according to the company, and (2) estimated higher input costs at 6% YoY.
  • In addition, QNS managed to reduce G&A expenses by 38% YoY, which led to a 1.2 ppt YoY decline in SG&A/sales and an EBIT margin of 23.2% in 2024.

QNS’s Q4 and 2024 results

 VND bn

Q4
2023

Q4
 2024

YoY

QoQ

2023

2024

YoY

2024A/ 
Vietcap's 2024F

Revenue

2,272

2,174

-4%

-20%

10,021

10,243

2%

101%

  • Soy milk

896 

986

10%

-19%

        4,003 

4,174

4%

102%

  • Sugar

909 

714

-21%

-31%

        4,037 

3,939

-2%

98%

  • Others(1)

466 

474

2%

0%

1,982

2,130

7%

103%

Gross profit

898 

782

-13%

-14%

        3,351 

3,486

4%

104%

  • Soy milk

382 

339

-11%

-28%

         1,643 

1,568

-5%

97%

  • Sugar

394 

248

-37%

-29%

         1,256 

1,290

3%

106%

  • Others(1)

122 

195

60%

112%

452

627

39%

125%

Operating profit

598 

590

-1%

11%

         2,154 

2,380

11%

111%

PBT

730 

715

-2%

22%

        2,447 

2,646 

8%

107%

NPAT-MI

649 

623 

-4%

17%

        2,183 

2,377 

9%

109%

GPM

39.5%

36.0%

 

 

33.4%

34.0%

 

 

Soy milk 

42.6%

34.4%

 

 

41.0%

37.6%

 

 

Sugar 

43.3%

34.7%

 

 

31.1%

32.7%

 

 

EBIT margin

26.3%

27.1%

 

 

21.5%

23.2%

 

 

NPM

28.6%

28.6%

 

 

21.8%

23.2%

 

 

Source: QNS, Vietcap; (1) Including beer, confectionary, mineral water, and biomass power plant segments.

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