Foreign shareholders to gain big from Vinamilk’s upcoming dividend payout

A host of notable foreign shareholders are set to receive hefty cash dividends from Vinamilk, the largest dairy firm in Vietnam.

Vinamilk (HoSE: VNM) has announced a decision to pay cash a dividend of VND2,450 (9.8 U.S. cents) a share on the record as of September 25, including VND950 in the last interim dividend for 2023 and an interim dividend of VND1,500 for 2024.

With nearly 2.1 billion outstanding shares, the company will spend VND5,145 billion ($205.66 million) on the upcoming dividend payout.

Overseas investors now own 51.55% stake in Vinamilk, according to financial data provider Vietstock.vn. There is no cap on foreign ownership in the company.

Among the largest foreign shareholders, F&N Dairy Investment Private Limited, controlled by Thai billionaire Charoen Sirivadhanabhakdi, will collect VND905 billion ($36.2 million) for holding a 17.69% stake.

Meanwhile, Platinum Victory Pte. Ptd., which owns 10,62%, will rake in VND543 billion ($21.7 million). F&N Bev Manufacturing Pte. Ltd., with a 2.7% stake, will receive VND138.3 billion.

Besides, the firm has other significant shareholders: Deutsche Bank (2.19%), Fubon FTSE Vietnam ETF (1.28%), Employees Provident Fund Board (1.27%), Matthews Pacific Tiger Fund (0.86%), and VanEck Vietnam ETF ($0.72%), according to the latest data from Saigon Securities Inc. (HoSE: SSI).

State Capital Investment Corporation (SCIC), the government’s investment arm, which is now the largest shareholder with 36%, will receive VND1,843 billion ($73.67 million).

As such, for the whole of 2023, Vinamilk is estimated to spend VND8,046 billion ($321.6 million) on dividend payouts, or 91% of the firm’s 2023 consolidated net profit.

For 2024, the dairy firm plans to spend the same cash dividend at a 38.5% ratio, equivalent to VND3,850 ($0.15) a share.

It earned an audited consolidated net profit of VND4,865 billion ($194.5 million) on revenue of VND30,768 billion in H1/2024, up 20% and 5.7% year-on-year, respectively, its quarterly financial statements show.

VNM shares closed up 1% at VND74,900 ($3) each on Friday.