Vinamilk announces Q2 2024 business results: Impressive growth

Vinamilk announced its Q2 2024 business results with a series of bright spots. Notably, total consolidated revenue reached a record high of VND 16,665 billion, which is also the quarter with the highest growth rate since the beginning of 2022. The export segment accelerated with an increase of up to 37% over the same period. Highest revenue growth in the past 2 years Vinamilk 's total consolidated revenue in Q2 2024 reached VND 16,665 billion, surpassing the peak of VND 16,194 billion in Q3 2021 to become the quarter with the highest revenue. This is also the quarter with the highest growth rate of the enterprise since the beginning of 2022 with an increase of 9.5% over the same period. This result was supported by both domestic and foreign business activities with growth rates of 5.8% and 29.9% respectively over the same period. With the acceleration in the second quarter of 2024, the total consolidated revenue in the first 6 months of 2024 reached VND 30,790 billion, up 5.6% over the same period and completing 48.7% of the yearly plan.

Vinamilk's consolidated revenue in the second quarter of 2024 "set a new peak", increasing impressively by 9.5% over the same period (Unit: billion VND)

Gross profit margin expanded by 2 percentage points to 42.4% thanks to strong revenue growth and the company's proactive adjustment of purchasing policies in line with raw material price developments. Consolidated profit after tax in the second quarter of 2024 reached VND 2,695 billion, up 20.9% year-on-year. Accumulated profit after tax in the first 6 months reached VND 4,903 billion, up 18.6% year-on-year and completing 52.3% of the annual plan.

According to the financial report up to the end of the second quarter, Vinamilk maintained a healthy and highly liquid balance sheet, with total assets of VND 54,194 billion and a debt-to-total-assets ratio of 14.7%. Ms. Mai Kieu Lien - General Director of Vinamilk, commented in the information announcement that Vinamilk had an outstanding quarter when the total consolidated revenue set a new record, more importantly, revenue achieved growth in all departments from domestic, export to domestic and foreign member units. According to Ms. Lien, this result comes from continuous product improvement, service quality improvement, market expansion, optimization of operational efficiency and strong innovation strategies in the past time. The company's leadership also showed confidence in the 2024 business plan, with improving macroeconomic factors combined with strongly implemented innovation strategies. Exports "accelerate", domestic revenue maintains stable growth In terms of revenue structure, foreign markets contributed up to 18.5% of consolidated revenue in the second quarter of 2024. Of which, net export revenue reached VND 1,740 billion, up 37% over the same period and higher than the 5.9% increase in the first quarter of 2024. Continuously improving products and maintaining close relationships with partners in key export markets in the context of many fluctuations in the world are the basis for growth in export activities in recent quarters.

Vinamilk's export revenue recorded "accelerated" growth in the second quarter of 2024

In addition to promoting traditional markets, Vinamilk is opening up new opportunities following the trend of supplying to global chains. This orientation brings Vinamilk products to more in the Australasia region. At the same time, Africa and South America are also potential areas for this enterprise. In the coming time, Vinamilk will maintain its focus on emerging markets, taking advantage of free trade agreements and building strategic partnerships. In the second quarter, Vinamilk will continue to promote trade promotion activities, connecting international trade by continuously participating in domestic and foreign fairs and exhibitions such as: Vietnam Sourcing connecting with retailers, global supply chains, exhibitions in China, South America, Japan, Taiwan, etc.

Promoting trade combined with exploiting advantages from Vietnam's FTAs ​​helps Vinamilk increase the efficiency of export activities.

Vinamilk also uses the sustainable development strategy as a competitive advantage when exporting to create a "new wind". For example, products exported to Australia and New Zealand with environmentally friendly packaging, it is expected that by 2025, 100% of products exported to this region will use easily recyclable packaging... With foreign branches in Cambodia and the US, net revenue in the second quarter of 2024 reached VND 1,384 billion, up 21.8% over the same period and higher than the 9.6% increase in the first quarter of 2024. Meanwhile, the main source of revenue from the domestic channel reached VND 11,850 billion in the second quarter of 2024, up 3.8% over the same period and the highest increase in the last 3 quarters, thanks to the double-digit growth of the yogurt, condensed milk, nut milk, etc. product lines thanks to many efforts to improve products, expand distribution channels and effective marketing. In the second quarter alone, Vinamilk had many innovations in product packaging such as Probi yogurt and drinking yogurt, introduced a new high-protein nut milk product or launched the advertising campaign "Squeezed every day, Fresh every day" for 100% Fresh Milk... In June 2024, according to the prestigious report "Brand Footprint" from Kantar Worldpanel, Vinamilk was the most chosen milk brand in Vietnam in 2024, and Top 3 FMCG manufacturers chosen the most in both rural and urban areas. According to comments from Kantar Vietnam, innovation and dynamism to meet new needs are also the factors that help Vinamilk maintain this position for the 12th consecutive year.

Vinamilk maintains its leading position as the most chosen milk brand in Vietnam for the 12th consecutive year.

The Sustainable Development segment continues to be implemented by the enterprise. 2024 is the 17th year that Vinamilk continues to implement the Vietnam Grow Up Milk Fund, donating 630,000 milk boxes to more than 8,000 disadvantaged children. In addition, the action program towards Net Zero 2050 is still being strongly implemented by Vinamilk with activities of greenhouse gas inventory according to ISO 14064, planting forests to absorb Carbon, moving towards carbon neutrality for member units... Vinamilk's action program towards Net Zero 2050 has received great attention at the 2024 Global Milk Conference held in the UK and Vinamilk is the only dairy enterprise in Asia to receive the Asia Responsible Enterprise Award (AREA) 2024 - in the "Green Leadership" category.

Vietnam's economic picture is improving with GDP in the second quarter of 2024 increasing by 6.9% year-on-year, from 5.9% in the first quarter of 2024. In the first 6 months of 2024, GDP increased by 6.4% year-on-year. In terms of GDP, domestic consumption improved with a growth rate of 5.8% yoy, significantly higher than the 2.7% in 6M2023. According to AC Nielsen, the fast-moving consumer goods (FMCG) industry in Q2 2024 grew by 1.8% yoy, higher than the flat growth in Q1 2024 and the 1.1% growth in 2023. The dairy industry also recorded a recovery trend when the decline was only 1.8% in Q2 2024 compared to a 2.8% decline in Q1 2024 and a 4% decline in Q4 2023.

VOV.VN

Source: https://vov.vn/doanh-nghiep/doanh-nghiep-24h/vinamilk-cong-bo-ket-qua-kinh-doanh-quy-2-nam-2024-tang-truong-an-tuong-post1111275.vov