Vinamilk Q3 profit meets 80 percent of yearly target

Hanoi (VNS/VNA) - The Vietnam Dairy Products Joint Stock Company, one of the country's leading dairy producer, has reported its nine-month net profit hit 80 percent of the year's target.

Nine-month net profit gained almost 6 per cent year on year to 8.38 trillion VND (363 million USD).

The slight increase of net profit in the January-September period was attributed to a modest gain in the firm’s total net revenue.

After three quarters, the company – known as Vinamilk – earned more than 42 trillion VND in total net revenue, up 7 percent year on year.

Sales of dairy products accounted for 96 percent of total revenue, worth 40.37 trillion VND.

Financial expenses rose a quarter in nine months to 116 billion VND, caused by a 93 percent growth in borrowing interest and commission paid to sellers worth 12 billion VND.

The company targets 56.3 trillion VND in total revenue and 10.5 trillion VND in net profit for 2019.

In the third quarter alone, Vinamilk posted a 4 percent annual increase in its net revenue, which was more than 14.3 trillion VND.

Its gross profit also rose 4 percent year on year to 6.7 trillion VND. However, financial expenditure was up nearly half to 45 billion VND.

In July-September, Vinamilk saw net profit rise 5 percent year on year to 2.69 trillion VND.

As of September 30, cash and cash equivalents were worth 1.04 trillion VND.

Short-term financial investments were worth 10.24 trillion VND, up 18 percent from the beginning of the year.

Vinamilk also increased its investment in GTNFoods by nearly three times to 1.48 trillion VND, bringing its ownership in the latter at 40.53 percent.

Total assets increased slightly to more than 40 trillion VND from 37.3 trillion VND. Short-term loans jumped four times to 4.2 trillion VND.

Vinamilk shares are listed on the Ho Chí Minh Stock Exchange as VNM and fell 1.5 percent to end at 130,000 VND per share on October 31.

The company's shares have gained as much as 15 percent in the last two months but are far away from the record high of 168,000 VND per share hit in early 2018./.