Vietnam's top dairy producer Vinamilk posts Q1 profit of nearly $93 mln

Vinamilk (HoSE: VNM) reported a net profit of nearly VND2.46 trillion ($93.26 million) in the first quarter of 2026, up 55% from the same period last year, as the dairy producer met about a quarter of its full-year target after three months.

The company said in its quarterly financial statement that net revenue rose 25% year-on-year to nearly VND16.15 trillion ($612.65 million), while gross margin improved to 42.7% from 40.1% a year earlier.

The results mean Vinamilk has achieved 24.3% of the year's revenue goal and 25% of its profit target, based on plans approved at its recent annual general meeting of shareholders.

As of March 31, 2026, total assets stood at VND55.43 trillion ($2.1 billion), up slightly from the beginning of the year, driven by a modest increase in equity to VND36.69 trillion ($1.39 billion). Cash and short-term financial investments accounted for 45.2% of total assets, despite a slight decline in cash flow.

Vinamilk said domestic sales were the main growth driver after the company largely completed a restructuring of its distribution system in the first quarter of 2025, including a review of distributors and its traditional salesforce.

Core product categories continued to underpin growth during the quarter. Notably, the liquid milk segment showed a clear recovery, particularly fresh milk products, supported by improved product quality.

All key sales channels posted double-digit growth compared with the same period in 2025, with a rebound in traditional trade and strong momentum in modern trade, Vinamilk’s retail store network, and e-commerce.

Supply chain adjustments amid geopolitical tensions

In overseas markets, consolidated net revenue reached VND4.07 trillion ($154.39 million), up 39% year-on-year.

Amid geopolitical volatility, Vinamilk said it had proactively adjusted its supply chain, establishing alternative shipping routes via Jordan to ensure deliveries. Despite higher logistics costs, the company maintained supply and relationships with partners. Over the longer term, it plans to diversify markets and input sources to mitigate risks.

In the Middle East, Vinamilk maintained stable growth, reflecting sustained demand for essential nutritional products and strengthening brand trust. Other potential markets also contributed positively, helping diversify revenue streams. China is emerging as a new growth driver, with key products such as condensed milk and yogurt gaining traction.

Subsidiaries also reported solid performance. Moc Chau Milk posted net revenue of VND742 billion ($28.15 million) and net profit of VND80 billion ($3.04 million), up 25.2% and 67.8% respectively, supported by cost optimization and a streamlined supply chain. In 2026, the company is expanding distribution in southern Vietnam and targeting international markets.

Angkor Milk recorded nearly triple the revenue and more than 2.5 times the profit compared with a year earlier, driven by higher volumes and solid demand in Cambodia. Meanwhile, Driftwood Dairy saw revenue fall 5% due to price adjustments in line with raw milk costs, though volumes remained stable and net profit rose nearly 25%.

With input costs rising, particularly for raw milk, energy and plastic packaging due to supply-demand dynamics and geopolitical factors, Vinamilk said it has taken steps to manage risks by maintaining safe inventory levels and planning procurement to ensure stable supply for production.

On the Ho Chi Minh Stock Exchange (HoSE), VNM shares closed April 29 at VND60,900 ($2.3) apiece.