Bright profit prospects for Vinamilk in Q1: executive

By My Ha, Minh Hue
Thu, February 8, 2024 | 7:00 am GMT+7

Dairy giant Vinamilk's Q1/2024 business results are likely to be far better than the same period last year, said chief financial officer Le Thanh Liem at an investor meeting in early February.

The motivation partly comes from comparison with the low base of the same period in 2023, he said, elaborating that in Q1/2023, Vinamilk encountered many difficulties, especially high raw material prices, causing net profit to drop to VND1,857 billion ($76 million) – a five-year low.

A Vinamilk store. Photo courtesy of the company.

A Vinamilk store. Photo courtesy of the company.

The company has closed the purchase of raw materials at low prices this year to meet demand until June, and its gross profit margin will improve from 0.7% to 1% this year, Liem added.

However, in terms of demand, Liem does not expect a strong recovery, and the firm has no plans to increase selling prices in 2024.

Broker BIDV Securities (BSC) appreciated the prospects of Vinamilk stock and forecast that the company's 2024 profit could grow by double digits - an increase that has almost disappeared since 2018 - thanks to its lion’s share in the market and improved gross margin amid the downward trend in raw material prices.

Despite numerous difficulties, Vinamilk reported revenue of VND15.62 trillion ($639.64 million) and a net profit of VND2.33 trillion ($95.4 million) in Q4/2023, up 3.6% and 24.4% year-on-year, according to its financial statement.

It was the third consecutive quarter that Vinamilk recorded profit growth and also the highest growth rate compared to 5-8% in Q2 and Q3.

Vinamilk said the fast moving consumer goods (FMCG) industry saw a year-on-year decrease of 3% in Q4, with the dairy industry alone dropping 5%. In the difficult economic context, domestic consumers have changed their consumption habits such as prioritizing products and shopping channels with attractive promotions, using alternative products with suitable prices, and choosing bulk buy to save money.

For the whole of 2023, the firm posted VND60.4 trillion ($2.47 billion) in revenue, equivalent to the 2022 performance; and over VND9 trillion ($368.55 million) in after-tax profit, a year-on-year increase of 5.2%. With such results, it fulfilled 95% of the revenue plan and exceeded the after-tax profit target by 5%.

In the first nine months of 2023, Vinamilk launched and/or resumed 11 products and opened 11 new Vietnamese Milk Dream stores, increasing the total number to 657.

At present, Vinamilk's products are present in 59 countries and territories. It is actively approaching new markets in South America, the Caribbean, and west and south Africa. Besides the U.S., China is another massive market that the dairy giant is targeting.

Vinamilk's export segment also reaped many successes when its net export revenue increased by 4.4% compared to 2022 and that of its foreign branches expanded 6.5%.

With expectations of economic recovery, the dairy producer plans to set growth targets for both revenue and profit in 2024, with official figures to be announced at the 2024 annual general meeting of shareholders in early April.

In the stock market, VNM closed the Tuesday session at VND67,600 ($2.67) per share.

Comments (0)
  • Read More
Indonesia targets comprehensive fuel subsidy scheme reform

Indonesia targets comprehensive fuel subsidy scheme reform

Indonesian Energy Minister Bahlil Lahadalia has said the country is conducting a thorough exercise to reform its fuel subsidy scheme.

Southeast Asia - Mon, November 4, 2024 | 10:50 pm GMT+7

Tech companies invest in data centers in Thailand

Tech companies invest in data centers in Thailand

Thailand’s Board of Investment (BOI) has approved investment support for two large data centre projects in the country worth over THB60 billion ($1.7 billion).

Southeast Asia - Mon, November 4, 2024 | 10:49 pm GMT+7

Indonesia upgrades sea wall system to protect Jakarta

Indonesia upgrades sea wall system to protect Jakarta

Indonesian Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono has stated that the construction of sea walls was one of the priorities of President Prabowo Subianto.

Southeast Asia - Mon, November 4, 2024 | 10:47 pm GMT+7

Where real estate and urban development meet

Where real estate and urban development meet

The Transit-Oriented Development (TOD) itself, if properly planned and implemented, can lower the barrier to the use of public transport, lessen the dependency on private vehicles, contributing to the liveability of communities and cities, write Avison Young Vietnam analysts.

Consulting - Mon, November 4, 2024 | 8:49 pm GMT+7

AI helps sellers offer competitive prices on e-commerce platforms: Lazada trainer

AI helps sellers offer competitive prices on e-commerce platforms: Lazada trainer

When sellers carry out promotions on e-commerce platforms, artificial intelligence can help ensure their prices remain competitive, says Nguyen Tran Tin, a seller and trainer at Lazada Academy.

Companies - Mon, November 4, 2024 | 8:07 pm GMT+7

Vietnam plans $7.3 bln rail route linking 2 northern provinces bordering China

Vietnam plans $7.3 bln rail route linking 2 northern provinces bordering China

Vietnam Railway Authority under the Ministry of Transport has proposed a 448-km long, VND183,856 billion ($7.26 billion) route running between the northern provinces of Lao Cai and Quang Ninh, both sharing a border with China.

Infrastructure - Mon, November 4, 2024 | 7:14 pm GMT+7

Vietnam agribusiness HAGL trains focus on domestic market, inks pact with Kingfoodmart

Vietnam agribusiness HAGL trains focus on domestic market, inks pact with Kingfoodmart

Vietnamese agri major Hoang Anh Gia Lai JSC (HAGL) is looking to tap domestic market potential afresh by distributing its products through the Kingfoodmart supermarket chain.

Companies - Mon, November 4, 2024 | 7:08 pm GMT+7

Mixed performance by Vietnam commercial banks in Q3

Mixed performance by Vietnam commercial banks in Q3

Vietnamese commercial banks have had a mixed third quarter, with some reporting substantial profit gains while others seeing steep declines or even losses.

Banking - Mon, November 4, 2024 | 4:52 pm GMT+7

Vietnam’s Vingroup, UAE's NMDC to collaborate in offshore wind power

Vietnam’s Vingroup, UAE's NMDC to collaborate in offshore wind power

Vietnam’s leading conglomerate Vingroup and the UAE-based NMDC Group will collaborate in offshore wind power, the latter said in a recent filing sent to the Abu Dhabi Securities Exchange (ADX).

Energy - Mon, November 4, 2024 | 4:20 pm GMT+7

Military-run Viettel Group has 2 more deputy general directors

Military-run Viettel Group has 2 more deputy general directors

General Phan Van Giang, Minister of National Defence, has appointed Cao Anh Son and Nguyen Dat as deputy general directors of Military Industry and Telecommunications Group (Viettel Group), starting last Friday.

Companies - Mon, November 4, 2024 | 3:14 pm GMT+7

Mega Long Thanh airport first phase should be completed in Sept 2026: senior parliament official

Mega Long Thanh airport first phase should be completed in Sept 2026: senior parliament official

Relevant agencies should prepare to complete the first phase of the $14-billion Long Thanh International Airport project on September 2, 2026, as soon as the Vietnamese National Assembly approves changes to the project, said a senior parliament member.

Infrastructure - Mon, November 4, 2024 | 12:44 pm GMT+7

Fed rate cuts, upgrading efforts to lure foreign investors back into Vietnam stock market: VinaCapital

Fed rate cuts, upgrading efforts to lure foreign investors back into Vietnam stock market: VinaCapital

The U.S. Fed’s rate cut cycle and the Vietnamese government’s fresh efforts to upgrade the local stock market status are likely to bring foreign investors back into the stock market next year, according to VinaCapital.

Finance - Mon, November 4, 2024 | 11:42 am GMT+7

Foxconn’s subsidiary Shunsin to invest $80 mln in northern Vietnam to produce integrated circuits

Foxconn’s subsidiary Shunsin to invest $80 mln in northern Vietnam to produce integrated circuits

Shunsin Technology (Bac Giang, Vietnam) Limited, a subsidiary of Taiwanese giant Foxconn, will invest $80 million in Vietnam’s northern province of Bac Giang to produce integrated circuits (IC).

Industries - Mon, November 4, 2024 | 10:44 am GMT+7

Q3 earnings of Vietnam’s listed firms up 21.6%: FiinGroup

Q3 earnings of Vietnam’s listed firms up 21.6%: FiinGroup

Net profits of listed companies in Vietnam increased 21.6% year-on-year in the third quarter of this year, maintaining a stable growth rate since the start of this year, according to local financial data provider FiinGroup.

Finance - Mon, November 4, 2024 | 9:31 am GMT+7

Thailand SCG’s revenue in Vietnam up 15% to $1.1 bln in Jan-Sept

Thailand SCG’s revenue in Vietnam up 15% to $1.1 bln in Jan-Sept

Thailand’s Siam Cement Group (SCG) recorded a revenue of THB36.71 billion ($1.08 billion) in Vietnam in the first nine months of this year, up 14.7% year-on-year.

Companies - Mon, November 4, 2024 | 8:00 am GMT+7

Nghiem Xuan Thanh appointed Party chief of Khanh Hoa province

Nghiem Xuan Thanh appointed Party chief of Khanh Hoa province

Nghiem Xuan Thanh, Party chief of Hau Giang province, was appointed by the Politburo, the country’s supreme decision-making body, to be Khanh Hoa province’s Party chief for the 2020-2025 term.

Politics - Sun, November 3, 2024 | 7:45 pm GMT+7