Dairy giant Vinamilk contributes $70 mln to shareholder Fraser and Neave's profit in fiscal year 2024

Vinamilk, one of the biggest dairy firms in Vietnam, contributed SGD95 million ($69.5 million) to the profit before interest and tax (PBIT) of shareholder Fraser and Neave (F&N) in fiscal year 2024 (October 2023-September 2024).

According to F&N’s report for the fiscal year, Vinamilk’s contribution accounted for 32% of F&N’s total profit.

F&N was originally a Singapore-based food & beverage giant. After a share swap deal in 2024 with Thailand’s giant ThaiBev, it became an entity associated with Thai billionaire Charoen Sirivadhanabhakdi. F&N held a non-controlling interest of 20.4% in Vinamilk, listed on the Ho Chi Minh Stock Exchange (HoSE) as VNM, as of end-September 2024.

Vinamilk maintains a presence in over 60 countries globally and operates with the support of 16 dairy factories Vietnam, Cambodia, and the United States, in addition to 15 dairy farms in Vietnam and Laos, according to F&N.

Last week, F&N registered to purchase nearly 20.9 million VNM shares. The transaction, with an estimated value of VND1.3 trillion ($51.2 million), is expected to be done from January 17 to February 14 via throughput and order matching methods.

The move is part of the firm’s persistent efforts to accumulate VNM shares after failing to acquire any in many attempts.

The Vietnamese dairy giant boasts a tradition of paying high cash dividends. At its peak in 2016-2017, the payout ratio reached up to 50-60% of the share face value. In 2023, the company posted a dividend rate of 38.5%, equivalent to about VND8.04 trillion ($316.5 million).