Food producer Kido Group restructures business activities

Kido Group will take over the entire distribution, promotion, and market expansion activities of subsidiary Tuong An Vegetable Oil JSC, Vietnam’s second largest cooking oil maker by market share, which will focus on production and be delisted from the stock market.

Along with the Vietnamese group’s restructuring, Kido’s cooking oil market share has climbed from 30% to 39% in the last two years, according to the company's statistics.

Kido Group’s net revenue in Q1/2022 was VND2,879 billion (over $125 million), up 24% year-on-year. Profit after tax reached $5.27 million, down 10%.

Of the group’s total revenue, cooking oil accounted for 87.8%, while other food products made up the remainder.

In particular, Tuong An Vegetable Oil in Q1 contributed $2.31 million to the group’s after-tax earnings, down 32% year-on-year due to fluctuations in energy prices induced by the Russia-Ukraine conflict.

Under Kido’s 2022 strategy, the cooking oil business will launch new products suitable to the new situation and expand to other regional markets like Cambodia and Laos.

In the ice cream segment, the group has planned its biggest ever promotion campaign for this summer and started expanding to regional countries after the disruption caused by Covid-19.

In the snack segment, Kido will invest in factory equipment and machinery, and proactively source raw materials to produce large quantities of products.

Kido has launched numerous offline stores to enlarge its F&B Chuk Chuk retail chain, covering all districts in Ho Chi Minh City, and is set to expand north soon.

The company last Sunday started to operate its bakery confectionery factory, marking the brand’s return after a six-year absence, with the goal of occupying the second position in Vietnam’s fresh bakery industry.

In November 2021, Kido Group acquired an additional 44 million shares of Vocarimex, raising its ownership to 87.3%.

Kido Nha Be and Vocarimex, a vegetable oil supplier to manufacturing companies, continue to serve as the group’s two core members.