Vietnam Dairy Products, better known as Vinamilk, increased sales by 18.2% in the first quarter to 10.3 trillion dong ($462 million) following changes in its product mix to focus more on liquid milk, yogurt, and baby formula.
Tax levies were down in the quarter, and this helped lift net profit 38% to 2.1 trillion dong ($94 million) year on year, while earnings per share rose 38% to 1,620 dong. Vinamilk's overseas sales rose 20% to 2.2 trillion dong in the same period, and contributed 22% to total revenue.
Vinamilk has maintained its dominant position in the Vietnamese dairy industry. As of May, it operated 11 dairy plants and one beverage factory domestically, and expects to open Cambodia's first dairy plant at the end of this month, serving a market of 15 million people.
It is targeting $2 billion in revenue in 2016 -- 11% growth year on year - with net profit up 6% to $367 million. Shares on the Ho Chi Minh City Stock Exchange closed at 144,000 dong ($6.26) on Monday, the highest level since a 148,000-dong peak in April 2014.
Vinamilk expects approval for a dividend payment of 60% for 2015 at its annual general meeting next week. The company also plans to offer discounted shares to employees to mark its 40th anniversary this year.
Removal of foreign ownership limits will also be discussed. The Vietnamese government announced it would sell its entire 45% stake in Vinamilk last year, and in March the company filed documents to withdraw from "sensitive business sectors". The change in the company's strategic industry status will enable foreign investors to hold up to 100% of the shares.
Source: Nikkei
Keyword : Vinamilk, on a bull run, in Vietnam's dairy industry.
