Confectionery company Huu Nghi targets $2.2 mln profit in 2023

Vietnamese confectionery company Huu Nghi Food JSC is targeting revenue of VND2.17 trillion ($91.98 million) in 2023, up 2% year-on-year, but pre-tax profit of only VND52 billion ($2.2 million), down 62%.

The company, registered on the unlisted public company market UPCoM as HNF, said that competition in the confectionery industry is rising, especially in the mid-high-end segment.

This year, HNF plans to pay a cash dividend of 50%.

"Packaging prices, logistics costs, asset depreciation costs, and high-interest rates have affected the company's business results," the company said.

To meet its 2023 targets, Huu Nghi Food JSC will focus on investing in marketing and trade activities to improve branding and competitiveness.

"We will also look at human resource development, focusing on personnel training and retraining in line with the company's strategic direction, and recruit new mid- and senior-level personnel. Concentrating resources on market development, expanding product lines, and investing in product research and development is also necessary to suit each segment," it added.

In 2022, the company achieved revenue of VND2.11 trillion ($89.69 million), up 82% compared to 2021, and pre-tax profit of VND138.4 billion ($5.87 million), three times higher than the previous year.

The firm, formerly known as Huu Nghi Premium Confectionery Factory, was established on December 8, 1997. It is one of the most famous companies in the confectionery industry, owning brands like Tipo, Daisy, and Staff.

In 2006, it was equitized and renamed Huu Nghi Premium Confectionery JSC, located in Hanoi.

Regarding its shareholder structure, the chairman is Trinh Trung Hieu, who represents the capital contribution of Vietnam National Tobacco Corporation (Vinataba) and currently holds nearly 3.1 million HNF shares, equivalent to a 10.3% stake.

Trinh Trung Son has a 12.8%s take, equivalent to more than 3.8 million shares. Meanwhile, the largest shareholder and veto power holding more than 15.4 million HNF shares, equivalent to a 51.37% stake, is DNA Holdings JSC.

On the UPCoM, HNF finished at VND22,500 ($0.95) per unit on Friday, unchanged from Thursday.