Leading Vietnamese food and cooking oil producer Kido Group reported an after-tax profit of VND651 billion ($27.5 million) in the second quarter of this year, up 198% year-on-year and the highest profit since the fourth quarter of 2016.
The company, listed on the Ho Chi Minh Stock Exchange (HoSE) as KDC, earned net revenue of VND2.32 trillion ($97.96 million) in the period, down 33%, according to its Q2 consolidated financial statements.
In the first six months of this year, Kido Group posted net revenue of VND4.38 trillion ($185.06 million) and post-tax profit of VND501 billion ($21.2 million), up 48% and down 31% year-on-year, respectively.
The company said that the strong increase in profit mainly came from financial investment activities due to it efficiently divesting from Calofic and KIDO Foods, and new investment in the Tho Phat cake segment.
Particularly for sales, revenue decreased compared to the same period in 2022 due to the inflation and falling purchasing power in the domestic and international markets.
As of June 30, KDC's total assets had stood at VND12.95 trillion ($547.4 million), down 7% compared to the beginning of the year, while inventories hit nearly VND1.35 trillion ($56.9 million), down 39%.
Kido Group has set a consolidated revenue target of VND15 trillion ($638.4 million) in 2023, and pre-tax profit of VND900 billion ($38.3 million), up 20% and up 76% year-on-year, respectively.
If the targets are met, they would mark the company's highest revenue and profit in seven years, excluding the profit made in 2015-2016 from the sale of its confectionery business.
In the second half of the year, KDC said it will research and expand products in the oil, condiment and ice cream sectors. For the cake industry and this year's mooncake batch, the company is in the process of completing the final steps to launch the product.
KDC is expected to complete the acquisition of 51% of Tho Phat brand shares at the end of this month, raising its ownership rate to 70% in the third quarter of this year. Tho Phat combined with the group's current bakery segment is expected to reach a revenue of about VND2 trillion ($84.56 million) and profit of VND200 billion ($8.45 million) in 2023.
On the HoSE, KDC traded at VND64,500 ($2.73) per unit on Friday.