Minh Phu Seafood H1 2026 Profit Surges 139% on North America Exports

Overview

Minh Phu Seafood Corporation (MPC), Vietnam’s largest shrimp exporter, reported a 139% year-on-year increase in H1 2026 net profit to VND 423 billion, with revenue up 16.8% to VND 7,555 billion. The strong performance was driven by a 44.5% surge in North American exports, which reached USD 107 million, offsetting a decline in Japan. The results highlight the company’s strategic shift toward high-value-added products.

Key Facts

• H1 2026 net profit after tax: VND 423 billion, up 139% year-on-year.
• H1 2026 net revenue: VND 7,555 billion, up 16.8% year-on-year.
• North American revenue: VND 2,836 billion (USD 107 million), up 44.5%, accounting for 37.5% of total revenue.
• Japan revenue: VND 1,367 billion, down 14.1% year-on-year.
• Gross profit: VND 1,145 billion, up nearly 69% year-on-year.
• Operating cash flow: negative VND 541 billion in H1 2026, versus positive VND 203 billion in H1 2025.
• Inventory at end-June 2026: VND 6,146 billion, up 25.5% from start of year; short-term borrowings up 30.3% to VND 5,717 billion.

What Happened

Minh Phu Seafood Corporation (MPC) released its consolidated financial statements for the first half of 2026, showing a significant improvement in profitability. The company attributed the results to a focus on high-value-added products with better margins, as well as a shift in revenue mix toward these items. The company also emphasized cost control and cash flow management.

North America remained the largest market, with revenue increasing 44.5% to VND 2,836 billion (USD 107 million), while Europe grew 22.2%, Australia 19.3%, and South Korea 32.6%. In contrast, Japan declined 14.1% and the domestic market fell 45%. The company noted that the strong North American performance helped offset the Japan decline.

Despite the profit surge, the financial report revealed some concerns: operating cash flow turned negative at VND 541 billion, inventory rose 25.5% to VND 6,146 billion, and short-term borrowings increased 30.3% to VND 5,717 billion. Interest expenses rose from VND 64.5 billion to VND 104 billion.

Market Context

MPC trades on the UPCOM exchange, closing at VND 14,700 on August 19, 2026. The company operates in the seafood sector, which has been volatile due to input costs and global demand shifts. The H1 results show a strong recovery in profitability, but the negative operating cash flow and rising inventory may raise concerns about working capital management. The broader Vietnamese seafood sector has been benefiting from diversification away from traditional markets like Japan.

Strategic Significance

The results underscore MPC’s successful pivot toward high-margin, value-added products and its ability to capitalize on North American demand. The company’s strategic focus on premium products is paying off, as evidenced by gross profit growing faster than revenue. However, the sharp increase in inventory and borrowings suggests the company is building stock in anticipation of future orders, which could be a positive signal if demand holds. Long-term investors should monitor whether MPC can sustain this momentum while managing its cash flow and debt levels.

What to Watch

• Q3 2026 results to see if profit growth continues and cash flow turns positive.
• Inventory levels and whether they convert to sales in the second half.
• Interest rate movements on USD-denominated loans, which could impact net profit.
• North American demand trends, especially for high-value shrimp products.
• Management’s commentary on the Japan market and any recovery plans.