Vedan international (02317.HK) announced that its interim performance for the six months ended June 30, 2024, was an income of 0.185 billion USD, a decrease of 2.0% year-on-year; the profit attributable to owners of the company was 8.331 million USD, compared to a loss of 1.468 million USD in the same period last year, turning losses into profits; basic earnings per share of 0.55 US cents. Proposed interim dividend of 0.273 US cents per share.
The decline in revenue is mainly due to the slowdown in market conditions and market demand. Among the group's main products, the sales prices and revenue of MSG products have decreased due to the slowing down of consumer market demand and intensified competition. However, energy costs have fallen compared to last year, resulting in an increase in gross margin in the first half of this year compared to the same period last year. Modified starch has declined in sales volume and revenue compared to the same period last year due to the slowdown in external markets in Europe and the United States. Starch sugar has increased in sales volume and revenue this year due to European and American customers increasing orders after destocking last year. Specialized products are still weak in demand due to the impact of the low economic situation, and the group has reduced prices to increase sales volume, resulting in a slight decrease in revenue compared to the same period last year.
Hydrochloric acid sales revenue has decreased compared to last year due to sluggish market demand and continuous decline in average selling price. However, costs have decreased significantly due to raw materials and energy costs, resulting in an increase in gross margin compared to last year. Feed products focus on integrating channels and adjusting product structure, focusing on the development of high-gross-margin products. In addition, other products such as coffee and bulk ingredients in the group have increased in revenue compared to the same period last year due to the lifting of the epidemic in the China region in 2023 and the recovery of domestic consumption.