Taking advantage of the purchasing power of consumers during the Lunar New Year, the first quarter of 2021, KIDO recorded profit after tax increased by nearly 3 times the same period last year, reaching 135 billion VND.
KIDO cooking oil production line. (Photo: KIDO). KIDO Group Joint Stock Company (code: KDC) announced business results for the first quarter of 2021, recording net revenue of VND 2,322 billion, an increase of 34.5% over the same period in 2020. In which, revenue growth mainly comes from the retail segment and the contribution to sales of products for the Lunar New Year. Net sales from cooking oils accounted for 87% of total sales and ice cream and other food products 13%.
KIDO said that although raw material prices have fluctuated quite strongly in recent years, the group has effectively controlled input materials. In the first quarter of 2021, gross profit margin decreased slightly by 1% to 19% compared to 20% of the previous year. Gross profit in the period increased by 27.9% to 441.8 billion. During Tet holiday, in order to boost revenue, KIDO has strengthened promotions, which made selling expenses slightly increased by approximately 4% year-on-year to VND 235 billion. General and administrative expenses 81 billion, down 10.9%. After deducting related expenses, KIDO recorded a profit after tax of 134.9 billion dong, 2.8 times higher than the same period in 2020.
Business results of the first quarter of 2021 of KIDO. (Source: KIDO). Talking about business activities in the first quarter of 2021, KIDO’s leaders said that in the first three months of 2021 in response to the COVID-19 outbreak, the group has developed a seasonal business plan, diversify products, through distribution channels such as traditional channels, supermarkets, convenience stores and corporate customers. For the quarantined areas as prescribed, KIDO arranges suitable sales plans to ensure sufficient supply of goods for customers during the Lunar New Year. As part of the plan to expand the category, new products in the Snacking category are also available in the Vietnamese confectionery market.
In 2021, KIDO aims to achieve 11,500 billion VND in net revenue and 800 billion VND in pre-tax profit, increasing 38% and 91.5% respectively compared to the implementation of 2020. With the above business results, by the end of the first quarter / In 2021, the enterprise has fulfilled 20.2% of the revenue plan and 18.75% of the annual profit target.
KIDO Foods converts loss into profit
As for KIDO Frozen Foods (KIDO Foods, code: KDF), in the first quarter of 2021, net revenue was 1,334 billion dong, nearly 2 times higher than the same period last year, pre-tax profit reached 26 billion while the same period last year saw a loss of 46 billion dong.
KIDO’s leaders said that the success in restructuring the group’s operations, effectively exploiting 120,000 points of sale in the refrigerated industry, helped KIDO maintain its leading position in ice cream market share with a rate of 43.5%, according to Euromonitor.
In which, Merino brand accounts for 24.8% and Celano brand accounts for 17.4% market share. The KIDO survey also showed that the ice cream industry is growing from the trendy product portfolio and products in the premium segment of the Celano brand.
Source: vietnambiz.vn – Translated by fintel.vn