The owner of Kun milk company expects a net profit of 850.

Báo Đầu tư•03/03/2024

Dairy Products Joint Stock Company aims for a 17-20% increase in revenue in 2024 compared to the same period last year, but expects profits to range from VND 850 to VND 950 billion, representing a 5% decrease and a 6% increase, respectively.

According to documents submitted to the annual general meeting, International Dairy Products Joint Stock Company (stock code: IDP) aims for net revenue this year to range from VND 7,800 to VND 8,000 billion, representing a 17-20% increase compared to VND 6,655 billion in 2023. Regarding after-tax profit targets, the company presents a low scenario of VND 850 billion, a 5% decrease compared to the previous year, and a high scenario of VND 950 billion, a 6% increase compared to the previous year. EBITDA is projected to reach VND 1,250-1,350 billion, a 2-10% increase compared to VND 1,229 billion in 2023.

At the end of the year, the company's total assets reached VND 5,288 billion, an increase of 37.71%, or VND 1,448 billion, compared to the beginning of the period. Short-term assets accounted for VND 3,573 billion of this amount, an increase of 33% compared to the beginning of the year. Liabilities as of the end of last year were VND 2,253 billion, an increase of nearly 11%.

The business results report shows that net revenue in 2023 reached VND 6,655 billion, an increase of 9.34% compared to the same period, while after-tax profit increased by 10.31% to VND 894 billion. The company's management stated that this is positive growth in the context of other companies in the same industry increasing their communication and promotional activities (including direct price reductions and accompanying gifts with increasingly higher promotional rates). Despite this, the company still recorded an increase in market share in all major market segments, including fruit-flavored milk (up 3%), drinking yogurt (up 0.3%), and cocoa malt (up 2%).

"The results were achieved thanks to a strong transformation in distribution system management, the introduction of new brands, the expansion of customer segments, and the maintenance of effective investment in communication and promotions for existing product lines," the company's management report stated.

Established in 2004 in Hanoi , International Dairy Products Joint Stock Company (IDP) owns many familiar milk brands such as LiF, Kun, Bavi, and LOF. The company built its second factory in Ba Vi after six years and gradually became an influential mid-range brand in the North. In 2014, IDP received a $75 million investment from VinaCapital and Daiwa Investment Group (Japan) with the hope of rising from the mid-range segment to become a market leader. However, difficulties arose for the company shortly after receiving the investment. From 2014 to 2018, the company only escaped losses in 2015. It wasn't until 2019 that the company returned to profitability and entered a period of strong growth.

According to the meeting documents, the company plans to change its name from International Dairy Joint Stock Company to Lof International Dairy Joint Stock Company, and also relocate its head office from Hanoi to Binh Duong.

The company's shares are traded on the UPCoM exchange. The current price is 250,000 VND and frequently lacks liquidity.

Recently, the company appointed Mr. Bui Hoang Sang as General Director, replacing Ms. Dang Pham Minh Loan. According to the minutes of a previous Board of Directors meeting, while still serving as General Director, Ms. Loan discussed the strategy of finding a professional CEO to manage the company. The candidate she sought and recommended was Mr. Bui Hoang Sang, who had worked for the company as a strategic advisor to the General Director since 2023. In mid-2023, Ms. Loan proposed appointing Mr. Sang as General Director, but this was not approved by the Board of Directors. After demonstrating good capabilities and relevant experience in managing the company, Mr. Sang was again recommended by Ms. Loan to continue implementing strategic development tasks for the company.

Mr. Sang's term lasts for 3 years.

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