The reason Vinamilk is always in the top companies after equitization

Effective production and business activities have helped Vinamilk's revenue increase 15 times and pre-tax profit increase 13 times since equitization in December 2003.

Last weekend, Vinamilk entered the Top 50 Most Effective Companies in Vietnam announced by Nhip Cau Dau Tu Magazine in collaboration with Thien Viet Securities Company. Vinamilk and 49 other companies on the ranking are holding 34% of the total market capitalization, equivalent to 80 billion USD. With a return on equity (ROE) of 30% and a market capitalization of 6.57 billion USD, Vinamilk is the only representative of the dairy industry named in this year's ranking.

The Top 50 measures the business performance of companies for three consecutive years, based on three growth indicators: revenue, return on equity (ROE) and earnings per share. According to the organizers, this year's list of 50 businesses has many things in common, notably the commitment of the leadership team to the core business and the trend of sustainable development according to ESG criteria (environment - society - governance). Sustainable development is also one of Vinamilk's four strategic spearheads in the 2022-2026 period.

Mr. Do Thanh Tuan - Director of External Relations of Vinamilk - received the title of Top 50 Most Effective Business Companies in Vietnam, in Ho Chi Minh City, September 16. Photo: Investment Bridge

2023 marks 20 years since the dairy giant converted to a joint stock model. At the time of equitization, Vinamilk's charter capital was VND 1,590 billion. By the end of 2022, the company's capitalization value had exceeded VND 159,000 billion.

Vinamilk is also among the top enterprises with the highest cash dividend payments on the stock exchange with a total payment value of more than VND 76,700 billion in the period 2004-2022. The unit is holding the No. 1 position in domestic market share in the dairy industry.

Vinamilk's business performance after equitization. Photo: VNM

Previously, the dairy giant was also on Forbes Vietnam's list of 50 best listed companies for 11 consecutive years. According to this list, in 2022, Vinamilk ranked 5th in terms of market capitalization, with revenue and after-tax profit reaching more than VND60,000 billion and nearly VND8,600 billion, respectively. This year, the company targets total revenue of VND63,380 billion, up 5.5% over the previous year, and after-tax profit of VND8,622 billion.

According to Forbes, in terms of product structure, Vinamilk has an overwhelming market share in several key product lines. The company owns more than 146,000 dairy cows (including a system of farms and cooperative households), operates 15 farms in Vietnam and Laos, and 16 dairy factories.

Mr. Nguyen Quoc Khanh - Executive Director of Research & Development of Vinamilk - received the title of Top 50 Best Listed Companies in Vietnam in 2023, in Ho Chi Minh City, August 17. Photo: Forbes

The company also continuously increased its brand value in the evaluation of international valuation units. In August this year, Brand Finance announced that Vinamilk's brand value continued to increase to the 3 billion USD mark from more than 2.8 billion USD last year. Thanks to that, the company increased one rank, to No. 2 in the Top 100 most valuable brands in Vietnam, continuing to affirm its position as the most valuable food brand in Vietnam and the 6th largest milk brand in the world. Vinamilk is the only representative of Southeast Asia in the Top 5 most sustainable milk brands in the world.

Ms. Bui Thi Huong, Executive Director of Human Resources - Administration - External Relations, representing Vinamilk, received certificates from Brand Finance in Hanoi, August 2023. Photo: Mibrand

"Vinamilk is driving the trend of sustainable development in the food industry, capturing the needs of consumers who are increasingly conscious in their food choices. Thanks to that, they are always the most popular brand among Vietnamese people," said Mr. Alex Haigh, CEO of Asia-Pacific at Brand Finance.

Hoang Anh

Source link: https://vnexpress.net/ly-do-vinamilk-luon-trong-top-cong-ty-hang-dau-sau-co-phan-hoa-4657284.html