Dairy giant Vinamilk to spend over $41 mln on interim dividend payment
Vinamilk, the largest dairy firm in Vietnam, plans to spend VND1.045 trillion ($41.3 million) to pay interim cash dividends to shareholders for the second phase of 2024 at a rate of 5%, according to the company.
The firm, listed on the Ho Chi Minh Stock Exchange (HoSE) as VNM, will finalize the list of shareholders eligible for the dividends on December 27, 2024, and the payment will be made on February 28, 2025.

A worker cares for milch cows. Photo courtesy of Vinamilk.
Earlier, on October 24, Vinamilk had spent VND5.1 trillion ($200.75 million) to pay the remaining dividends for 2023 at a rate of 9.5% and interim dividends for the first phase of 2024 at 15%.
The dairy giant boasts a tradition of paying high cash dividends. At its peak in 2016-2017, the payout ratio reached up to 50-60% of the share face value. In 2023, the company posted a dividend rate of 38.5%, equivalent to about VND8.04 trillion ($316.5 million).
According to the 2024 AGM resolution, the dividend payout for 2024 was planned to be maintained at 38.5%. Therefore, the company would advance 20% of this amount before the official rate is decided at next year’s AGM.
VNM is currently trading at VND64,200 ($2.53) per share, down 56% from its peak of VND144,600 per share at the end of 2017. This is the lowest price level for VNM in nine years.
Vinamilk was listed on the stock exchange in 2006. During the first 11 years after listing, the stock showed a consistent upward trend. Investors who bought Vinamilk shares at any time during this period made a profit, and the longer they held the stock, the greater returns they got.
However, after reaching its peak in late 2017, the ticker entered a 7-year downward trend, discouraging many investors. During the 2017-2018 period, foreign investors owned up to 59-60% of Vinamilk’s shares, but this has now dropped to 51-52%.
Profitability gradually recovering
VHM has become less attractive to investors due to a slowdown in business performance over the past few years.
From 2006 to 2017, Vinamilk saw impressive, consistent growth in both revenue and profit. Its revenue surged from VND6.25 trillion to VND51.04 trillion ($2 billion), and profit from VND660 billion to VND10.3 trillion ($405.4 million), representing respective growth of 8.2 times and 15.6 times.
However, in the following years, the revenue stagnated at around VND60.37 trillion ($2.38 billion), and profit decreased to VND8.87 trillion ($349.35 million) in 2023.
Along with the decline in business performance, the dividend payout ratio has also fell. Previously, the company paid annual cash dividends of 50-60% and offered stock dividends of 20%. The last stock dividend payout was made in August 2020, and the dividend ratio has been reduced to 38.5% in recent years.
With more than 2 billion floating shares, maintaining a 38.5% dividend payout means Vinamilk will need to spend about VND8.04 trillion ($316.5 million) or more than 90% of its annual profit.
CEO Mai Kieu Lien has confirmed that this is the largest dividend payout possible as the firm has to balance it with development investment.
Vinamilk’s leadership is hopeful for a new growth cycle following its restructuring and rebranding efforts in July 2023. The results for the first nine months of this year showed some positive effects from the restructuring.
The nine-month revenue reached VND46.31 trillion ($1.82 billion), up 3.3% compared to the same period last year, while the gross profit margin improved from 40.2% to 41.9% due to positive shifts in the sales mix and more stable costs for imported raw materials.
As a result, its after-tax profit increased by 9.6% to VND7.31 trillion ($287.7 million). After nine months, the company achieved 73% and 81% of its revenue and profit targets.
Vinamilk’s growth momentum is driven by the foreign market, which contributed VND8.35 trillion ($328.7 million), up 15.7%, while domestic revenue rose by just 1.1% to nearly VND13 trillion ($511.7 milion). The contribution of the foreign market to its total revenue also climbed from 16% in 2023 to 18% currently.
According to VCBS Securities, Vinamilk's business prospects remain positive, driven by a recovery in dairy industry spending alongside the overall growth of the economy. Profit margins are expected to improve in 2024 as raw material prices fall. However, in 2025, raw material costs are forecast to rise, but the company may pass on these costs to consumers through higher prices.
Additionally, the company plans to launch a beef product at the end of 2024, with positive feedback in the testing phase. The product is expected to generate about VND1 trillion ($39.4 million) in revenue in 2025 and VND3 trillion by 2029.
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