Kido strives to restructure finances amid pressure from falling profits
Việt Nam•14/01/2025
In the context of a sharp decline in profits in the first 9 months of 2024 compared to the same period last year, Kido Group (HoSE: KDC) has just announced an early buyback of VND 250 billion worth of bonds coded KDCH2126001. This move is considered an effort to reduce financial pressure, as the company is facing declining revenue and increasing costs. In the near future, Kido plans to hold an extraordinary general meeting of shareholders to reorient its strategy, especially with major brands such as Merino and Celano.
Kido Group, chaired by Tran Kim Thanh, has just spent 250 billion VND to buy back bonds before maturity. According to the Hanoi Stock Exchange (HNX), Kido Group Joint Stock Company (stock code: KDC, HoSE) has just announced the completion of the early repurchase of VND250 billion of bonds coded KDCH2126001, reducing the remaining value of the bond lot to VND250 billion. The KDCH2126001 bond lot was issued on January 4, 2021 with an initial total value of VND1,000 billion, par value of VND1 billion/bond and a term of 5 years, expected to mature on January 4, 2026. This is the third time Kido has repurchased bonds early. Previously, the group spent a total of VND500 billion to repurchase two parts of this bond lot on January 4, 2023 and January 19, 2024. Kido Group plans to hold an extraordinary general meeting of shareholders on January 24, 2025 at the Sheraton Saigon Hotel (HCMC). At this event, Kido will report its 2024 business results and present to shareholders plans related to the KIDO brand, Celano and Merino brands. Another important content is to seek shareholders' opinions on the sale of shares in Kido Frozen Foods Joint Stock Company (Kido Foods). This is the company that manages two famous brands Merino and Celano, which entered the frozen food industry in 2016. Previously, in 2023, Kido transferred more than 24% of its capital at Kido Foods to a partner for VND 1,069 billion, valuing the company at about VND 4,450 billion. In the third quarter of 2024, Kido recorded net revenue of VND 2,244 billion, down 3% over the same period last year. Financial revenue decreased by 29% to VND 35 billion, while other expenses increased sharply: selling expenses increased by 24% (to VND 326 billion) and business management expenses increased by 54% (to VND 128 billion). After deducting taxes and expenses, Kido's net profit in the third quarter of 2024 reached VND21 billion, down 74% compared to the same period in 2023. Accumulated in the first 9 months of 2024, net revenue reached VND5,980 billion, down 13%, and profit after tax reached only VND54 billion, down sharply compared to the same period. Although implementing a strategy of restructuring the investment portfolio and optimizing finances, Kido is facing many challenges in business operations, especially the decline in profits. However, with share sales and strategic repositioning plans, the group expects to improve operating efficiency in the coming time.
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