Sao Ta Foods (stock code: FMC) has set a target to sell 22,000 metric tons of shrimp this year and has outlined a proactive strategy to address risks related to anti-dumping and countervailing duty investigations in the U.S. market.
According to documents prepared for the 2025 Annual General Meeting of Shareholders, Sao Ta Foods Joint Stock Company (FMC - listed on HoSE) will propose its business plan for the year, targeting 25,000 metric tons of processed shrimp, 22,000 metric tons of shrimp sales, and 1,300 metric tons of agricultural products sales.
The company aims to achieve a consolidated revenue of USD 255 million, reflecting a 2% increase from 2024. However, pre-tax profit is projected to remain stable at VND 420 billion.
Sao Ta Foods’ leadership acknowledges that escalating global trade conflicts may disrupt supply chains but could also create opportunities to penetrate new markets. The company holds a strategic advantage with its large-scale ASC-certified farming areas, ensuring a stable supply for major international partners. In 2025, it plans to further specialize product lines across its processing facilities to optimize costs and enhance productivity.
Sao Ta Foods is also set to strengthen its processed shrimp exports to Japan and the EU.
Despite growth prospects, the company faces significant challenges, particularly trade defense measures and intensified competition from Ecuadorian and Indian shrimp.
Vietnamese frozen warmwater shrimp exports to the U.S. are currently subject to two anti-dumping cases and one countervailing duty investigation. In response, Sao Ta Foods has adopted a strategic approach by actively increasing exports to the U.S. to become a mandatory respondent in these cases. This strategy aims to avoid being subject to the weighted-average duty rate imposed on non-mandatory respondents. Currently, Sao Ta Foods ranks among the top five shrimp exporters in Vietnam.
With well-prepared documentation, the company expects to gain a competitive advantage in proving to the U.S. Department of Commerce that Vietnamese shrimp are not dumped in the U.S. market. This could potentially result in the lowest possible tariff rates, similar to previous rulings. Sao Ta Foods’ leadership emphasizes that securing favorable tariff rates would not only benefit the company but also support the broader Vietnamese shrimp export sector, ensuring continued access to this crucial market.
As previously reported by Vietnam Trade and Industry Review, Khang An Foods, a subsidiary of Sao Ta Foods, has secured a substantial order from Costco, the world’s third-largest retail chain. This deal is expected to strengthen Sao Ta Foods’ position in U.S. trade investigations and contribute positively to its future business performance.
In the first two months of 2025, Sao Ta Foods recorded sales of USD 46.9 million, achieving over 18% of its annual revenue target.
The company is committed to expanding its processed shrimp exports to Japan and the EU, leveraging Vietnam’s existing free trade agreements to diversify its markets and mitigate risks associated with over-reliance on a single destination.
Market demand is showing signs of recovery, and shrimp import prices have edged up since the second half of 2024. On the production side, Sao Ta Foods has completed the harvest from its new farming areas and is currently harvesting from its older farms. The timely supply of raw shrimp ensures smooth processing operations and enhances overall production efficiency.
Sao Ta Foods plans to propose a dividend payout of 20% for both 2024 and 2025, which will be submitted for shareholder approval at the upcoming meeting.
Source: Tạp chí Công Thương