Vinamilk sets record revenue target

Vietnam Dairy Products Joint Stock Company expects this year's consolidated revenue to improve by 4.4% compared to last year to reach VND63,163 billion, surpassing the record revenue set in 2021.

Vinamilk sets record revenue target. Illustrative photo

According to documents submitted to the annual general meeting of shareholders held at the end of April, Vietnam Dairy Products Joint Stock Company (Vinamilk, stock code: VNM) set a target of total consolidated revenue this year of VND63,163 billion, up 4.4% compared to VND60,479 billion last year. If achieved, this would be the highest revenue in Vinamilk's history, surpassing the record of VND61,012 billion set in 2021.

Vinamilk targets pre-tax profit of VND11,516 billion, up 5% from VND10,968 billion last year. After-tax profit is expected to grow at a lower rate, up only 4% year-on-year to VND9,376 billion.

Regarding the profit distribution plan, Vinamilk expects the total dividend for the whole year of 2024 to be 38.5%, meaning each share will receive VND3,850. This dividend level is equal to the dividend in 2023.

In the annual report, Ms. Mai Kieu Lien - General Director of Vinamilk - said that the company's priority this year is to continue to recover market share and sales in a sustainable and profitable manner. "That is why we will maintain our focus on optimal operational solutions to have more budget to serve market development and strengthen brand strength," Ms. Lien shared.

In 2023, Vinamilk recorded total revenue of VND 60,479 billion, up 13% over the previous year and completing more than 95% of the annual plan. Profit after tax reached VND 9,019 billion, up 5% over the previous year and exceeding the set target by 5%.

The domestic market contributed VND50,600 billion in revenue. According to Ms. Lien, the market share in the domestic market has gradually recovered compared to the beginning of last year in most product lines in the context of the entire dairy industry recording negative growth. The liquid milk and powdered milk industries have ended their market share decline, thanks to efforts in market research, brand repositioning and promoting diversification of distribution channels carried out throughout 2023. Export activities contributed VND5,000 billion in net revenue, up 4.4% over the previous year. The company is still maintaining the development of the Chinese market, in addition to other markets such as the Middle East.

The company has made two cash dividend payments of 15% and 5%, respectively, and finalized the list of third cash dividends at a rate of 9%. Within 6 months from the end of the 2024 general meeting of shareholders, the company will distribute the remaining dividend for 2023 at a rate of 9.5%, meaning each share will receive VND950. Thus, the company will spend a total of VND8,046 billion to pay dividends, equivalent to 91% of consolidated after-tax profit allocated to the company's owners.

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