Q2 profit drops 98.5%
KIDO Group Corporation (Code: KDC), a well-known food processing company in Vietnam, has just recorded disappointing business results in the second quarter of 2024. Declining revenue and plummeting after-tax profits have significantly affected KDC's stock price movements.
In Q2/2024, KIDO recorded net revenue of VND 1,716.6 billion, down 25.6% year-on-year. Cost of goods sold accounted for VND 1,446.2 billion, gross profit was VND 270.4 billion, down 15.7% year-on-year. Gross profit margin, on the contrary, improved from 13.9% to 15.8%.
KIDO Group Corporation recorded a 98.5% decrease in Q2 profit (Photo TL)
Notably, financial revenue during the period decreased sharply, from 1,119.9 billion VND in the same period to only 46.6 billion VND, equivalent to a decrease of 24 times. Financial expenses decreased 3 times, from 84.6 billion to only 28.6 billion VND.
Revenue decreased, but in return, selling expenses and business management expenses were both reduced in the second quarter. Specifically, selling expenses decreased from 410.9 billion to only 242.3 billion VND. Business management expenses also decreased from 204.8 billion to only 98.2 billion VND.
However, this result was just enough to help the company escape losses in the second quarter, recording a profit after tax of VND11 billion while in the same period last year it was earning VND715.2 billion. Compared to the same period last year, the company's profit after tax in the second quarter decreased by 98.5%.
Explaining the cause of the decline in profits, KIDO said that this was the result of restructuring the group's business model, as well as market fluctuations affecting the business.
KIDO's accumulated revenue in the first 6 months of the year recorded VND3,532 billion, down 19.1%. Profit after tax decreased from VND564.6 billion to only VND32.6 billion, equivalent to a decrease of 94.2%.
KDC stock price plummets, hits 1-year low
With not-so-bright information about the business situation in the second quarter of 2024, KDC's stock price is also somewhat affected.
Specifically, in the past year, KDC shares have always fluctuated around the price of 63,000 VND/share and have repeatedly exceeded the threshold of 65,000 VND/share.
However, currently, KDC code is only trading around 54,600 VND/share, the lowest price in the past year. This has created conditions for some large funds to "spend money" to acquire shares and become major shareholders of KIDO.
For example, the purchase of KDC code by Liva Holdings Limited, a fund under VinaCapital Fund Management JSC. This unit bought 8.6 million KDC shares in the trading session on August 14.
With the above transaction, Liva Holdings Limited increased the number of KDC shares owned from 11.67 million to 20.29 million shares, equivalent to a 7% ownership ratio. With this ownership of over 5%, Liva Holdings Limited has become a major shareholder of KIDO.
What is KIDO's capital structure like?
Regarding the leadership of KIDO, the two business brothers Tran Kim Thanh still hold important positions in the group. Mr. Tran Kim Thanh is Chairman of the Board of Directors, Mr. Tran Le Nguyen holds the role of Vice Chairman and General Director.
Currently, KIDO is holding shares of many famous units in the food production and processing sector such as Vietnam Vegetable Oil Corporation (Vocarimex), Tuong An Vegetable Oil JSC, Kido Nha Be (KNB)... Or most recently, KIDO has acquired the Tho Phat Dumpling brand, holding 68% of shares of Tho Phat International JSC.
In terms of assets, by the end of the second quarter of 2024, KIDO recorded total assets of VND 11,377.6 billion, down nearly VND 1,000 billion compared to the beginning of the year. Of which, cash decreased from VND 2,185 billion to only VND 1,637 billion. Bank deposits decreased from VND 618.4 billion to VND 173.7 billion.
Regarding capital structure, the company recorded payables of VND4,287.9 billion. Short-term debt accounted for VND2,566 billion, down nearly VND250 billion compared to the beginning of the year.
Owner's equity is making up the majority of the capital structure, accounting for VND7,089.6 billion. Notably, the company is accumulating a large amount of undistributed profit after tax, accounting for VND1,493.3 billion.
Source: https://www.congluan.vn/loi-nhuan-giam-sau-985-trong-quy-2-co-phieu-tap-doan-kido-kdc-cham-day-post308509.html
Comment (0)