Vinamilk holds its annual general meeting 2020 on June 26 (Photo: VNA) HCMCity (VNS/VNA) - Despite the impact of the COVID-19 pandemic, dairy producer Vinamilk’stotal revenue and profit in the first half of 2020 still rose 3-7 percenton-year, CEO Mai Kieu Lien has said.
Inthe first six months of 2020,Vietnam Dairy Products JSC (Vinamilk) earned 14.6 trillion VND (628.7 million USD) worth of total revenueand 2.9 trillion VND (124.9 millionUSD) worth of profit.
Modestearnings growth this year was attributed to the downturn of income brought bythe school milk programme as schools were shut to cope with the pandemic, Lien told the firm’s annual shareholdermeeting on June 26.
"Whenschools re-opened in May, the situation became better but performance was stillbelow the expectation," she said,adding that "Earnings may improve in the last two quarters of the year."
Vinamilktargets 59.6 trillion VND intotal revenue this year, up 5.7 percent on-year, and profit is forecast to gainonly 1 percent on-year to 10.69 trillion VND.
Inthe first quarter of 2020, Vinamilk reported total revenue rose 7 percenton-year to 14.2 trillion VND andprofit was down slightly to 2.78 trillion VND.
A50 percent cash dividend is set for 2020, divided into three separate tranches.Two advance tranches will be made in October 2020 and February 2021, withcorresponding pay-out ratios of 20 percent and 10 percent. The schedule andpay-out ratio for the third tranche will be decided in the 2021 annual generalmeeting of shareholders.
Thecash dividend pay-out rate for 2019 was 45 percent.
Thelargest dairy producer by market value will also issue 348 million shares toshareholders this year at a five-to-one ratio, meaning every shareholder willreceive one new share for every five shares they have.
Theshare issuance will raise Vinamilk’s charter capital by 3.38 trillion VND to 17.4 trillion VND.
Anew cattle farm in Quang Ngai provincewill come into operation this year and Vinamilk is planning to build more in Dong Nai province, the centrally-run city of Can Tho, and Laos.
Newproducts for dietary customers will also be studied and developed.
Vinamilkthis year is planning to launch a coffee and dining store chain with the brand“Hi-Café”. A store was opened in 2019 at the firm’s headquarters in District 7,HCM City. The chain will be enlarged this year.
Thechain would be developed based on Vinamilk’s milk retail system with 430 storesbeing allocated across the country, Lien said.
Vinamilkand consumer staples firm Kido have recently announced a partnership deal thatestablishes a joint-venture business, in which Vinamilk holds 51 percent of thecapital.
Revenueof the joint-venture will be accounted by Vinamilk and Kido will enjoy the netprofit on its part.
Thejoint-venture is expected to help both firms step in the beverage sector.
Thetwo firms were hiring an independent auditor to value their products before thejoint-venture begins operating, Lien said./.
Inthe first six months of 2020,Vietnam Dairy Products JSC (Vinamilk) earned 14.6 trillion VND (628.7 million USD) worth of total revenueand 2.9 trillion VND (124.9 millionUSD) worth of profit.
Modestearnings growth this year was attributed to the downturn of income brought bythe school milk programme as schools were shut to cope with the pandemic, Lien told the firm’s annual shareholdermeeting on June 26.
"Whenschools re-opened in May, the situation became better but performance was stillbelow the expectation," she said,adding that "Earnings may improve in the last two quarters of the year."
Vinamilktargets 59.6 trillion VND intotal revenue this year, up 5.7 percent on-year, and profit is forecast to gainonly 1 percent on-year to 10.69 trillion VND.
Inthe first quarter of 2020, Vinamilk reported total revenue rose 7 percenton-year to 14.2 trillion VND andprofit was down slightly to 2.78 trillion VND.
A50 percent cash dividend is set for 2020, divided into three separate tranches.Two advance tranches will be made in October 2020 and February 2021, withcorresponding pay-out ratios of 20 percent and 10 percent. The schedule andpay-out ratio for the third tranche will be decided in the 2021 annual generalmeeting of shareholders.
Thecash dividend pay-out rate for 2019 was 45 percent.
Thelargest dairy producer by market value will also issue 348 million shares toshareholders this year at a five-to-one ratio, meaning every shareholder willreceive one new share for every five shares they have.
Theshare issuance will raise Vinamilk’s charter capital by 3.38 trillion VND to 17.4 trillion VND.
Anew cattle farm in Quang Ngai provincewill come into operation this year and Vinamilk is planning to build more in Dong Nai province, the centrally-run city of Can Tho, and Laos.
Newproducts for dietary customers will also be studied and developed.
Vinamilkthis year is planning to launch a coffee and dining store chain with the brand“Hi-Café”. A store was opened in 2019 at the firm’s headquarters in District 7,HCM City. The chain will be enlarged this year.
Thechain would be developed based on Vinamilk’s milk retail system with 430 storesbeing allocated across the country, Lien said.
Vinamilkand consumer staples firm Kido have recently announced a partnership deal thatestablishes a joint-venture business, in which Vinamilk holds 51 percent of thecapital.
Revenueof the joint-venture will be accounted by Vinamilk and Kido will enjoy the netprofit on its part.
Thejoint-venture is expected to help both firms step in the beverage sector.
Thetwo firms were hiring an independent auditor to value their products before thejoint-venture begins operating, Lien said./.
VNA
