Feb 2, 2013

Vietnam - Consumer goods giants still earn big bucks

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HCMC – Leading companies in the fast-moving consumer goods (FMCG) sector last year earned hefty profits, even higher than their profits in 2011, despite the difficult economic situation.

A financial statement of Vinamilk shows that the company in the final quarter of 2012 achieved more than VND7.2 trillion in sales revenue, nearly VND1.1 trillion higher than in the fourth quarter of 2011. The company’s after-tax profit was put at VND1.6 trillion, versus VND1.03 trillion in the year-ago period.

Vinamilk general director Mai Kieu Lien attributed the year-on-year growth of 58.5% in after-tax profit to an increase of 17.54% in sales revenue. Moreover, other earnings also rose thanks to the backing of suppliers, standing at VND159 billion, compared to VND97.9 billion in the fourth quarter of 2011.

In all of last year, the top player in the local dairy market earned more than VND27.3 trillion in revenue, up 23% against 2011. The after-tax profit was some VND5.7 trillion, up 39%, exceeding the growth target of 20%.

Similarly, Vinacafe Bien Hoa, owner of the instant coffee brand Vinacafe with a large market share, also recorded impressive growth in 2012, when the company operated under Masan Group, holder of its 51% stake.

The company’s revenue from goods sales and services in last year’s fourth quarter surged 55% year-on-year, from VND467.6 billion to VND728.3 billion. This resulted in an after-tax profit of VND151.6 billion, a sharp rise of 210% over the year-ago period.

This spectacular business result is attributed to the launch of new products and the change from imported materials to coffee produced by the company itself.

Overall, Vinacafe Bien Hoa last year earned more than VND2.1 trillion in revenue, some VND600 billion higher than in 2011. The whole-year after-tax profit was VND303.8 billion, up 44% against the preceding year, exceeding the target of VND300 billion.

Meanwhile, confectionary maker Kinh Do reported it had earned a gross profit of VND528 billion last year, a year-on-year rise of 53%. This result is attributed to efficient operation and lower lending rates, although revenue from sales and services only picked up 1.1%.

The after-tax profit of Kinh Do was over VND398 billion, up 42.8% against 2011.

The company last year focused on foodstuff as its core business field. In addition, its executive board improved their management, managed costs well and paid attention to the products with high profit margins.

Minh Tam - The Saigon Times Daily

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