Vinacafe Bien Hoa JSC, Vietnam's leading instant coffee maker, reported an after-tax profit of VND195 billion ($8.2 million) in the first half of 2023, up 42% year-on-year.
The company, listed on the Ho Chi Minh City Stock Exchange as VCF, earned net revenue of VND994 billion ($41.99 million) in the period, up 4%, according to its financial statement.
In the second quarter of this year, VCF posted net revenue of nearly VND555 billion ($23.44 million) and after-tax profit of VND122 billion ($5.1 million), up 5% and 10% year-on-year, respectively.
As of June 30, 2023, the company's total assets stood at VND2.24 trillion ($94.7 million), up 6% compared to the beginning of the year, of which inventory hit VND296 billion ($12.5 million), down 20.6%.
The company has set two revenue scenarios for 2023: a low of VND2.5 trillion and a high of VND3 trillion ($126.7 million), up 10% and 32% compared to last year, respectively. It is targeting after-tax profit at a low of VND380 billion and a high of VND500 billion ($21.1 million), up 19% and nearly 57%, respectively.
Vinacafe Bien Hoa is known as the first instant coffee producer in Southeast Asia and has been operating since 1968. In the first phase, VCF developed its product portfolio and established an extensive distribution system, holding the top market share in the instant coffee industry and a leading position in the branded beverage industry in Vietnam.
Major shareholder Masan Beverage, a subsidiary of Masan Group, one of Vietnam’s largest listed conglomerates by market capitalization, currently owns a 98.97% stake in Vinacafe Bien Hoa.
In 2022, VCF achieved net revenue of VND2.21 trillion ($93.04 million), equivalent to 2021. Due to the high cost of capital and financial expenses, its after-tax profit reached VND319 billion ($13.45 million), down 27.7% year-on-year.
According to the company, the reason for the decline in profit was a 30% decrease in net sales from cereals and instant coffee.
At the close on Friday, VCF shares were priced at VND200,800 ($8.47).