• QNS released its Q1 2025 results with revenue of VND2.3tn (USD90mn; -10% YoY) and NPAT-MI of VND392bn (USD15mn; -26% YoY), completing 22% and 18% of our respective full-year forecasts. As results trail our forecasts, particularly on the bottom line, we see potential downside risk to our current projections, pending a fuller review. 
• In Q1 2025, soy milk revenue grew 19% YoY, driven by a 10% YoY increase in sales volume as marketing initiatives took effect, according to management. This segment’s GPM expanded strongly by 3.4 ppts YoY to 42.5%, attributed to effective cost management and lower input material prices. 
• The overall revenue decline in Q1 2025 was primarily driven by the sugar segment (-35% YoY). Management cited that despite an anticipated increase in production volume, factors including (1) weak demand, (2) slightly lower domestic sugar prices, and (3) intense price competition from smuggled and imported sugar caused the sugar segment's gross profit to fall 45% YoY and its GPM to contract sharply by 4.8 ppts YoY to 24.1%. 
• Other business segments saw combined revenue decrease slightly by 2% YoY, with consumption volumes down between 5% and 18% YoY due to market fluctuations and still-recovering consumer demand, according to the company.

QNS’s Q1 2025 results

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

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