Kun milk company owner expects after-tax profit of 850

International Dairy Products Joint Stock Company targets a 17-20% increase in revenue in 2024 over the same period, but expects profit to fluctuate between VND850 - 950 billion, corresponding to a decrease of 5% and an increase of 6%.

According to the document submitted to the annual general meeting of shareholders, International Dairy Products Joint Stock Company (stock code: IDP) set a target of net revenue this year of VND 7,800 - 8,000 billion, an increase of 17-20% compared to VND 6,655 billion in 2023. Regarding the target of after-tax profit, the company proposed a low scenario of VND 850 billion, a decrease of 5% compared to the previous year, and a high scenario of 950%, an increase of 6% compared to the previous year. EBITDA is expected to reach VND 1,250 - 1,350 billion, an increase of 2-10% compared to VND 1,229 billion in 2023.

At the end of the year, the company's total assets reached VND5,288 billion, up 37.71%, equivalent to VND1,448 billion compared to the beginning of the period. Short-term assets accounted for VND3,573 billion of this, up 33% compared to the beginning of the year. Liabilities as of the end of last year were VND2,253 billion, up nearly 11%.

The business results report shows that net revenue in 2023 reached VND 6,655 billion, up 9.34% over the same period, while profit after tax increased by 10.31% to VND 894 billion. The company's management said that this is a positive growth rate in the context of companies in the same industry increasing communication and promotion activities (including direct discounts and gifts with increasingly high promotion rates). However, the company still recorded an increase in market share in all major segments participating in the market, including fruit milk (up 3%), drinking yogurt (up 0.3%) and barley cocoa (up 2%).

“The results were achieved thanks to a strong transformation in managing the distribution system, introducing new brands, expanding customer segments, and maintaining effective investment in communication and promotion in existing product lines,” the company's board of directors reported.

Established in 2004 in Hanoi, International Dairy Products Joint Stock Company owns many familiar milk brands to consumers such as LiF, Kun, Bavi, LOF. The company built a second factory in Ba Vi after 6 years and gradually became an influential mid-range brand in the North. In 2014, IDP received an investment of 75 million USD from VinaCapital and Daiwa Investment Group (Japan) with the hope of rising from the mid-range segment to become a market leader. However, difficulties came to this business right after receiving the investment capital. From 2014 to 2018, the company only escaped losses in 2015. It was not until 2019 that the company returned to profit and entered a period of strong growth.

Also according to the meeting documents, the company plans to change its name from International Dairy Joint Stock Company to Lof International Dairy Joint Stock Company, and change its headquarters from Hanoi to Binh Duong.

The company's shares are trading on the UPCoM exchange. The current price range is 250,000 VND and is often illiquid.

Recently, the company appointed Mr. Bui Hoang Sang as General Director to replace Ms. Dang Pham Minh Loan. According to the minutes of the previous Board of Directors meeting, Ms. Loan, while still in office as General Director, discussed implementing a strategy to find a professional CEO to run the company. The candidate sought and recommended by Ms. Loan was Mr. Bui Hoang Sang, who has worked for the company as a strategic advisor to the General Director since 2023. In mid-2023, Ms. Loan proposed to appoint Mr. Sang as General Director but was not approved by the Board of Directors. After a period of demonstrating good capacity and appropriate experience in running the company, Mr. Sang continued to be recommended by Ms. Loan as General Director to carry out strategic development tasks of the company.

Mr. Sang's term lasts 3 years.

Source