Tobacco giant Khatoco reaps success with ostrich breeding

From a tobacco producer, Khanh Viet Corporation (Khatoco), based in the south-central province of Khanh Hoa, has embarked on a number of new endeavors, not least, ostrich breeding.

In 2002, Khatoco established the Khatoco Quang Nam Ostrich Breeding Center in the south-central province of Quang Nam.

The ostrich is a wild bird originating from Africa which has been domesticated and adapted to the climate in Vietnam.

After a two-year successful pilot run, the company is setting up another 122-hectare ostrich breeding center in Khanh Hoa.

Currently, Khatoco is one of the few companies in the country that raises and provides quality ostrich products for the domestic and export markets. With a total herd of more than 12,000 heads, each year it provides the market with about 8,000 breeds, 300 tons of meat, and thousands of hides for the tanning industry.

According to Khatoco leaders, with a closed process from breeding, raising, processing and selling, the company has promoted the development of ostrich meat product lines.

It has a system of well-invested barns and factories that meet animal husbandry and food hygiene and safety standards.

Boasting an agent system throughout the country, its ostrich meat products are available in all major supermarkets in Vietnam.

Regarding tanning, with its large-scale ostrich farms in Quang Nam and Khanh Hoa, Khatoco has the best source of raw materials, meeting standards in size and quality.

In addition, the firm has a tannery factory equipped with modern machinery and advanced technology, capable of processing 50,000 animal hides per year.

Khatoco’s key export markets include the U.S., South Korea, Japan, China, and Thailand. In the domestic market, its main partners are large FDI companies processing for partners from Europe, Japan, South Korea, and China.

High net revenue

Established in 1983 under the name Phu Khanh Tobacco Company, which manually produced tobacco products, now Khatoco is the largest local enterprise in the central region.

Based in Loc Tho ward, Nha Trang town, Khanh Hoa province, Khatoco is a state-owned enterprise operating under the model of a parent company - subsidiary company.

It engages in many fields such as tobacco, packaging and printing, tourism services, garments and fashion, livestock farming and tanning, industrial cluster infrastructure, and real estate.

Notably, tobacco is Khatoco's key industry, with revenue ranking third among 18 tobacco manufacturers in Vietnam. It annually invests in more than 1,000 hectares of plantations across the country, with an annual output of 6,000 tons.

Khatoco’s cigarette exports have maintained a high growth rate to major markets like Hong Kong, Australia, Cambodia, mainland China, Singapore, and Thailand. In 2023, the company produced over 1 billion packs of cigarettes.

In terms of industrial cluster infrastructure and real estate, Khatocoh has invested in the 152-hectare Trang E Industrial Cluster in Cam Lam district, Khanh Hoa province (tobacco production, food processing, textiles, printing and packaging); and the 35-hecatre Khatoco Ninh Ich Industrial Cluster in Ninh Hoa township, Khanh Hoa province (textiles, tanning, and livestock farming).

In the tourism segment, Khatoco has developed a sustainable chain between hotel clusters and entertainment service areas. Of which, Monkey Island, Orchid Island and Yang Bay Tourist Park Complex, covering 570 hectares in Khanh Hoa province; 4-star Liberty Central Nha Trang and 4-star Ibis Styles Nha Trang hotels have created a closed professional product and service chain.

Regarding the business situation, in the 2016-2023 period, Khatoco maintained net revenue from sales and services at a high level of over VND6 trillion ($236.55 million).

Last year, it posted consolidated revenue of VND8.9 trillion ($350.88 million) and consolidated pre-tax profit of VND301 billion ($11.87 million), surpassing the respective plans by 6% and 31%. Its export revenue hit $56.3 million, or 120% of the target. The firm paid VND3.33 trillion ($131.28 million) to the state budget, 6% higher than the set plan.

By December 31, 2023, Khatoco's total assets had reached more than VND6.16 trillion ($242.45 million), an increase of nearly 3% compared to the beginning of the year. The enterprise had a charter capital of VND2.37 trillion ($94.44 million).

In 2024, Khatoco is targeting total consolidated revenue of VND8.4 trillion ($331.16 million), consolidated pre-tax profit of VNDN240 billion ($9.46 million), and export turnover of $49 million. It is also striving to pay VND3.19 trillion ($125.76 million) to the state budget.

In the first five months of this year, its consolidated revenue reached VND3.76 trillion ($148.24 million) with export turnover of $23 million. It paid VND1.44 trillion ($56.77 million) in taxes.