Vinamilk reports $94 mln profit in Q2, changes brand identity

Vietnam’s largest dairy producer Vinamilk reported consolidated revenue of VND15.2 trillion ($642.27 million) and consolidated after-tax profit of VND2.22 trillion ($93.8 million) in the second quarter of this year, up 1.6% and 5.6% year-on-year, respectively.

In the first six months of the year, the firm recorded total revenue of more than VND29.15 trillion ($1.23 billion) and post-tax profit of over VND4.1 trillion ($173.25 million), fullfilling 46% and 48% of its year targets, respectively.

In 2023, Vinamilk, listed on the Ho Chi Minh Stock Exchange as VNM, has targeted VND63.38 trillion ($2.7 billion) in consolidated revenue, a year-on-year increase of 5.5%.

At a virtual annual general meeting of shareholders on April 26, CEO Mai Kieu Lien said the company’s after-tax profit was estimated to reach VND8.62 trillion ($367 million) this year, flat compared to the previous year.

“To realize these goals, Vinamilk will expand in international markets, invest in factories and farms, and deploy investment projects at home and abroad,” she said.

At the AGM, shareholders approved a plan to pay cash dividends of at least 50% of consolidated post-tax profit, with 15% to be paid on October 5, 2023. They also authorized the board of directors to decide on the dividend in advance and the date for the second payment in 2023.

This year, Vinamilk will implement new plans on production, sales, the domestic market, exports, research and development, and human resources.

"We believe this strategy will achieve positive results and a brighter future is awaiting us from the second quarter when the prices of raw materials stabilize," said Lien.

However, she noted that it will take Vinamilk about a year to reach profits as high as pre-pandemic levels.

In early April, Vinamilk and Japanese company Sojitz broke ground on a $500-million cattle complex to supply beef in northern Vietnam. 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 stock market, VNM's share price hit VND70,900 ($3) at Friday's close.

On Thursday, Vinamilk officially announced a new brand identity.

The new logo has been updated with the words "est 1976", which is the year the brand was launched. The two main colors, blue and white, leave a deep visual impression, blending with the tropical color palette.

Mai Kieu Lien said changing the brand identity was an effort to reposition, marking the first step in the process of modernizing the user experience and creating a breakthrough in the future.

"A brand that wants to exist for 100 or 200 years always has to change with actual conditions. During 47 years of establishment and development, Vinamilk has changed many times, and this change is no exception. The financial investment value was not much, but the effect brings great expectations," said Lien.

According to the plan, the new identity will be deployed throughout the Vinamilk system including the website, online sales channels, retail points, stores, brand publications, and product packaging from July 2023.