Vinamilk sees revenue and profit both up despite COVID-19

COVID-19, dairy producer Vinamilk, Kido partnership, COVID-19, dairy producer Vinamilk, Kido partnership, Markets,
Vinamilk holds their 2020 annual shareholder meeting on Friday in HCM City. The company aims to receive VND59.6 trillion in total revenue this year, up 5.7 per cent on-year. — Photo

Despite the impact of COVID-19, dairy producer Vinamilk’s total revenue and profit in the first half of 2020 still rose 3-7 per cent on-year, CEO Mai Kieu Lien said on Friday.

In the first six months of 2019, Vietnam Dairy Products JSC (Vinamilk) earned VND14.6 trillion worth of total revenue and VND2.9 trillion worth of profit.

Modest earnings growth this year was attributed to the downturn of income brought by the school milk programme as schools were shut to cope with the pandemic, Lien told the firm’s annual shareholder meeting.

"When schools re-opened in May, the situation became better but performance was still below the expectation," she said.

"Earnings may improve in the last two quarters of the year."

Vinamilk targets VND59.6 trillion in total revenue this year, up 5.7 per cent on-year, and profit is forecast to gain only 1 per cent on-year to VND10.69 trillion.

In the first quarter of 2020, Vinamilk reported total revenue rose 7 per cent on-year to VND14.2 trillion and profit was down slightly to VND2.78 trillion.

A 50 per cent cash dividend is set for 2020, divided into three separate tranches. Two advance tranches will be made in October 2020 and February 2021, with corresponding pay-out ratios of 20 per cent and 10 per cent. The schedule and pay-out ratio for the third tranche will be decided in the 2021 annual general meeting of shareholders.

The cash dividend pay-out rate for 2019 was 45 per cent.

The largest dairy producer by market value will also issue 348 million shares to shareholders this year at a five-to-one ratio, meaning every shareholder will receive one new share for every five shares they have.

The share issuance will raise Vinamilk’s charter capital by VND3.38 trillion to VND17.4 trillion.

A new cattle farm in Quang Ngai Province will come into operation this year and Vinamilk is planning to build more in Dong Nai Province, the centrally-run city of Can Tho, and Laos.

New products for dietary customers will also be studied and developed.

Vinamilk this year is planning to launch a coffee and dining store chain with the brand “Hi-Cafe”. A store was opened in 2019 at the firm’s headquarters in District 7, HCM City. The chain will be enlarged this year.

The chain would be developed based on Vinamilk’s milk retail system with 430 stores being allocated across the country, CEO Lien said.

Kido partnership

Vinamilk and consumer staples firm Kido have recently announced a partnership deal that establishes a joint-venture business, in which Vinamilk holds 51 per cent of the capital.

Revenue of the joint-venture will be accounted by Vinamilk and Kido will enjoy the net profit on its part.

The joint-venture is expected to help both firms step in the beverage sector.

The two firms were hiring an independent auditor to value their products before the joint-venture begins operating, Lien said. — VNS

News Related


WHO chief warns of worsening COVID-19 pandemic globally

The COVID-19 pandemic will get much worse if too many countries continue in the wrong direction, the WHO warned Monday. Read more »

17 states sue Trump administration over rule that strips visas from foreign students

17 states and DC on Monday sued to block the Trump administration from stripping foreign students of their visas if their college moves exclusively to online classes because of the coronavirus pandemic. Read more »

Vietnam repatriates 350 citizens from Australia

350 Vietnamese citizens were brought home from Australia on Tuesday, thanks to Vietnamese and Australian authorities and Vietnam Airlines. Read more »

Deputy PM talks by phone with British Foreign Secretary

During a phone conversation on Monday, Deputy Prime Minister and Foreign Minister Pham Binh Minh and British Foreign Secretary Dominic Raab agreed that relations between Vietnam and the UK are improving. Read more »

Trump leads Biden in Missouri poll

US President Donald Trump is leading his opponent Joe Biden by 7 points in Missouri, according to a You Gov poll conducted by Saint Louis University. Read more »

US Congress rejects China’s claims in East Sea

The Foreign Affairs Committees of the US Senate and House of Representatives on Monday said China's claims in the South China Sea, called the East Sea in Vietnam, have no legal basis. Read more »

Man jailed for snatching phones from foreign tourists

A Hanoi court on Monday sentenced a man to five years in jail for snatching two iPhones from Taiwanese and Danish tourists last year. Read more »

Hanoi airport taxies towards upgraded runways

The overall project involves renovating and upgrading both 11L/29R runway (1A, outdoors) and 11R / 29L runway (1B, near the tarmac); as also building three new rapid exit taxiways. Indicator lights, a drainage... Read more »

Hanoi aims to be a sci-tech hub of the country: City Party chief

In the period of 2021 – 2025, Hanoi aims to develop science, technology and innovation as a major driving force for the city’s socio-economic development. Read more »

Year-end NA session to take place over 18 days

The next National Assembly session is proposed to be held over the course of 18 days in both teleconference and in-person forms. Read more »