Vinamilk projects flat profit in 2023

Vietnam’s largest dairy manufacturer Vinamilk is targeting after-tax profit of VND8.62 trillion ($367 million) in 2023, flat compared to the previous year.

Vinamilk, listed on the Ho Chi Minh Stock Exchange (HoSE) as VNM, is aiming for total consolidated revenue of VND63.38 trillion ($2.7 billion), up 5.5% year-on-year, according to documents slated for release at its 2023 annual general meeting scheduled to be held online on April 25.

In 2023, Vinamilk's board of directors will submit a plan to pay cash dividends of at least 50% of consolidated post-tax profit. The first dividend is expected to be 15% in cash (VND1,500 per share). The last registration date is August 5 and payment is expected on October 5, 2023. Shareholders will approve the authorization for the board of directors to decide on the dividend in advance and the date for the second installment in 2023.

Vinamilk posted net revenue of VND59.96 trillion ($2.56 billion) in 2022, down 1.58% year-on-year, and after-tax profit of VND8.58 trillion ($365.8 million), down 19.3%.

According to the firm, Vietnam’s dynamic dairy industry is worth $5 billion. Dairy consumption hit 21.8 kilograms per capita in 2019, below the regional average of 26.7 kilograms. It quoted data from market researcher AC Nielsen as saying that the country’s dairy industry grew 5% in value in the first 11 months of last year, while volume remained unchanged, attributing these changes to higher prices amid rising production costs.

Last year, the company opened nearly 40 new Vinamilk stores in a move to ensure sustainable distribution solutions. As of end-2022, Vinamilk’s distribution network had more than 230,000 points nationwide, including nearly 650 Vinamilk stores.

Early this month, Vinamilk and Japanese company Sojitz broke ground on a $500-million complex cattle rearing to supply beef in northern Vietnam, a project expected to advance Vietnam’s livestock industry. The project, a 49-51 joint venture between Sojitz and Vinamilk subsidiary Vilico, will cover almost 76 hectares in Tam Dao district, Vinh Phuc province bordering Hanoi.

On the Ho Chi Minh City Stock Exchange, the VNM share price hit VND74,400 ($3.16) at Wednesday's close.