Vinamilk expects record revenue

Vietnam’s leading dairy company Vinamilk expects a revenue of VND64.07 trillion ($2.79 billion) in 2022, up 5% from a record high of $2.66 billion in 2021.

Mai Kieu Lien, CEO of Vinamilk, said that the dairy market growth depends on GDP growth, income, population, and the number of children born each year. "Thus, there is still a lot of room for growth in the unsaturated dairy sector."

Total revenue of the dairy industry may reach $5.92 billion in 2025, of which Vinamilk's figure is expected to reach $3.74 billion, Lien told Vinamilk's shareholder meeting on Tuesday.

The diary giant expects to maintain a dividend rate of 38.5% in 2022, which costs about $348 million, accounting for 83% of Vinamilk’s expected profit after tax.

Vinamilk has exported to 57 countries and territories, with a total export turnover of more than $2.6 billion in the year to date. The Middle East, the U.S., and Cambodia remain the major markets, contributing to its strong growth momentum.

In 2021, the company generated $423 million of net revenue from its overseas business activities, up 10.5% from 2020.

Under its 2022-2026 plan, the company aims to maintain its leading position in Vietnam's dairy market by accelerating the speed of new product R&D, as well as building multi-channel distribution and approach strategies.

The corporation plans to exploit opportunities in new markets through mergers and acquisitions, joint ventures, venture capital, and investing in start-up projects.

Vinamilk will also expand its international markets, sales, distribution system, factories and farms in line with its goals of sustainable development and social responsibility.

Vinamilk and Vietnam Livestock Corporation (Vilico) jointly invested in a 25-hectare dairy plant project in My Hao district, Hung Yen province. Capitalized at $200 million, the factory is expected to produce 400 million liters of milk per year.

The duo also cooperated with Japan's Sojtz Group on the breeding, processing and distribution of beef products, with a total investment of $500 million.

The firm planned to start construction of Moc Chau Dairy Paradise Complex, as well as operate the first farm in Lao-Jagro Dairy Farm Complex at the end of 2022, with a herd of 8,000 cows, producing 44,000 tons of milk per year.

Vinamilk on Tuesday appointed Nguyen Hanh Phuc, former General Secretary of the National Assembly, as its chairman for the next five years. Phuc will replace Le Thi Bang Tam, who left the position after nearly seven years.

Its profit after tax reached $463 million in 2021, 8 percent higher than the expected $423 million in 2022.