One Capital Hospitality - the owner of Trang Tien Ice Cream and Givral Cake brands - aims to double profits this year.
This business plan was just approved by shareholders of One Capital Hospitality Joint Stock Company (OCH) at the annual meeting, according to newly released meeting minutes.
This year, the company targets consolidated revenue of VND1,196 billion, up 18% compared to last year. Consolidated profit after tax is expected to more than double, reaching nearly VND150 billion.
According to OCH, food production and trading is still one of the main revenue and profit generating business areas. In particular, the majority of revenue comes from two long-standing brands: Givral Cake and Trang Tien Ice Cream. Givral - a cake brand with a history of more than 70 years in Ho Chi Minh City is a subsidiary 99% owned by OCH, while Trang Tien Ice Cream - a culinary brand of Hanoi established in 1958, is a subsidiary of Givral.
Last year, Givral Cakes’ total revenue exceeded the annual plan by 17%, with pre-tax profit nearly 70% higher than the target. Trang Tien Ice Cream recorded a sudden growth in profit thanks to the launch of new product lines in the ice cream segment and the launch of a new brand, Trang Tien Sweet Soup.
OCH's total consolidated revenue last year reached more than VND 1,000 billion, more than double that of 2021. Pre-tax profit recorded more than VND 72 billion, more than three times the annual plan.
However, in a report to shareholders, OCH's board of directors said that the food market in general and the cake and ice cream market in particular are increasingly competitive and fierce. The emergence of more large domestic and foreign brands is becoming a challenge for OCH.
One of the current focuses of this company is to expand the market with two main food brands. Of which, Trang Tien Ice Cream will "go South", expanding the market in Ho Chi Minh City, while Givral Cake will expand its presence in the Hanoi market.
Bringing Trang Tien Ice Cream to the Southern market failed in previous years but is progressing positively at the present stage. However, the "Northward expansion" of Givral cakes is facing more challenges due to competitive pressure.
According to OCH, in the field of food production and trading, the company's plan is to continue to improve production capacity, open more factories and stores, and implement solutions to stabilize production to ensure good supply during peak and seasonal periods. The company also said it will promote the application of digital technology in operations and management, improving the competitiveness of key product lines.
In addition to the food sector, OCH also operates in the hotel and resort sector. In this sector, the company owns two long-standing 4 and 5-star brands, StarCity Nha Trang and Sunrise Nha Trang.
In 2023, OCH plans to apply various measures such as cost optimization, expanding customer base, building flexible price structures, offering many product packages to compete, attract new customers, and especially flexibly adapt to the general situation of the tourism market.
Minh Son
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