ANTD.VN - Vietnam Dairy Products Joint Stock Company (Vinamilk) announced that its total consolidated revenue and profit after tax in the third quarter of 2023 reached VND 15,681 billion and VND 2,533 billion, respectively. Accumulated for 9 months, total consolidated revenue and profit after tax reached VND 44,848 billion and VND 6,669 billion, respectively, completing 71% and 77% of the yearly plan.
Vinamilk overcomes "headwinds" to increase market share
The company's sales activities are affected by the general situation of the FMCG and dairy industries. According to AC Nielsen, the fast-moving consumer goods industry ended the third quarter of 2023 with a 2% decrease in value compared to the same period in 2022 due to the slowdown in growth in purchasing power of consumer goods and services. The entire dairy industry also recorded a 4% decrease. However, Vinamilk's operating results were still better than the entire industry, thanks to which its market share continued to recover.
From the beginning of the third quarter of 2023, Vinamilk also launched marketing campaigns to increase media awareness for its products. A series of liquid milk products were "changed" to spread the brand repositioning effect. In the following quarters, the company will continue to introduce new packaging for the remaining product lines and is expected to complete the packaging change by mid-2024. Outstanding marketing activities have brought positive business results to many brands. Typically, the 9-month revenue of Ông Thọ condensed milk and Sure Prevent adult powdered milk recorded a nearly double-digit cumulative growth in the first 9 months, the third quarter of 2023 sales of Super Nut 9-nut milk and Green Farm fresh milk increased by nearly 3 times and 2 times, respectively, compared to the same period in 2022.
Major distribution channels also remained stable in the third quarter of 2023. Vinamilk has just launched a new online shopping interface in a rebranding project, linking with store chains to promote stimulus programs, encourage consumers to access, and enhance shopping experiences. As of the end of the third quarter of 2023, the Company is operating 657 Vietnamese Milk Dream stores, an increase of 11 stores compared to the beginning of the year.
Foreign markets contributed VND2,384 billion in net revenue in Q3/2023 and VND7,218 billion in the first 9 months, with a highlight in the export segment increasing by 5% thanks to the positive recovery from some markets with a more stable political situation compared to the first 6 months of the year, along with stability in the Middle East and Southeast Asian markets. Another positive signal came from China, after Vinamilk signed a cooperation agreement with two leading enterprises in the import - distribution sector to bring dairy products to this billion-people market.
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| Vinamilk's Ông Thọ condensed milk is sold at supermarkets and markets in Guangzhou, China. Photo: Vi Nam |
In addition, AngkorMilk's overseas branch in Cambodia continued to grow by nearly 10% and Driftwood's branch in the United States maintained a high base level for the same period.
Consolidated gross profit margin in Q3/2023 reached 41.9%, expanding by 243 basis points compared to the same period in 2022, marking the strongest year-on-year growth since Covid-19 (Q4/2021).
As a result, consolidated profit after tax in the third quarter of 2023 reached VND 2,533 billion, up 9.1% over the same period in 2022 and reaching the highest level since the third quarter of 2021. Accumulated for 9 months, consolidated profit after tax reached VND 6,669 billion, equivalent to the same period and completing 77% of the yearly plan.
As of September 30, 2023, the net cash balance remained high. In addition, the ratio of Operating Cash Flow to Net Profit after Tax for the 12 months ended September 30, 2022 continued to reach 1.1x, ensuring the quality of the company's profits.
Affirming the position of Vietnamese brands on the map of sustainable development of the dairy industry
In August 2023, Vinamilk, together with the Gaia Nature Conservation Center and Mui Ca Mau National Park, implemented a project to regenerate 25 hectares of mangrove forest at the southernmost point of the country. With an expected absorption of up to 62,000 to 73,000 tons of CO2e, this is an activity of Vinamilk employees within a large project called "Vinamilk Net Zero Forest" with an effort to form green areas to absorb carbon, moving closer to the goal of bringing net emissions to zero by 2050 that the Vietnamese Government has been promoting.
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| The 25-hectare mangrove regeneration area is jointly implemented by Vinamilk and Gaia at Mui Ca Mau National Park. |
Previously, this enterprise also coordinated with the Ministry of Natural Resources and Environment to implement the 5-year Net Zero Tree Planting Activity (2023 - 2027) and announced 2 units (Factory and Farm) achieving carbon neutrality according to PAS 2060:2014 standards in the second quarter of 2023.
Vinamilk's efforts in sustainable development have been recognized by professional organizations. According to Brand Finance, Vinamilk leads the Top 10 most sustainable brands in Vietnam and is the only representative of Southeast Asia in the Top 5 most sustainable dairy brands globally, surpassing many other big names in the world dairy industry.
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The brand value has risen to the 3 billion USD mark, helping Vinamilk maintain its 6th position in the Top 10 most valuable dairy brands globally and the Top 2 strongest global brands in the dairy industry. Recently, Vinamilk has also been confirmed as the most valuable food brand in Southeast Asia. It can be seen that, besides value and strength, the "sustainable development" factor of the brand is a highlight that is being promoted internationally and is also a measure of a sustainable, long-term business.
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