Kido spends more than 1,000 billion VND to buy shares of Tho Phat Bao

In the third quarter, Kido invested 810 billion VND and in October injected an additional 269 billion VND to increase its stake in Tho Phat Bao to 68%.

Kido Group's recently released consolidated financial report for the third quarter has revealed the value of its investment in Tho Phat International Joint Stock Company (Tho Phat).

Accordingly, by the end of the third quarter, Tho Phat was recorded as a subsidiary of Kido, with an ownership stake of 51%, equivalent to an investment value of 810 billion VND. With this ownership stake, Tho Phat was valued at approximately 1,588 billion VND.

In early October, Kido further increased its ownership stake in Tho Phat to 68% of the shares, meaning the company spent 1,079 billion VND.

According to Mr. Tran Le Nguyen, increasing his ownership stake in Tho Phat from 25% to 68% is a crucial decision that will help the company move faster towards its ambition to lead the food industry.

Tho Phat's steamed bun factory in Hiep Phuoc Industrial Park (Ho Chi Minh City). Photo: Thi Ha — Tho Phat's steamed bun factory in Hiep Phuoc Industrial Park (Ho Chi Minh City). Photo: *Thi Ha*

This year, Tho Phat aims for revenue of 1,100 billion VND and profit of 150 billion VND. According to KIDO's expectations, after the merger, Tho Phat's revenue will triple next year.

In the near future, Tho Phat will expand its distribution of steamed buns to the Northern and Central regions of Vietnam, and in 2024 will sell processed products such as braised pork with eggs, shumai, braised beef, and processed vegetables... These products target the young customer segment who appreciate convenience while still ensuring a nutritious and delicious meal.

Besides Tho Phat, Kido owns four joint ventures and associated companies as of the end of September, including: Dabaco Food Processing (50%); LG Vina Cosmetics (40%); Lavenue (50%); and Kido Frozen Foods (49%).

The group's consolidated financial report for the third quarter shows net revenue reaching VND 2,303 billion, a decrease of 27% compared to the same period in 2022. The gross profit margin reached 19%, while the cost of goods sold decreased by 30% to VND 1,860 billion.

After deducting all expenses, the company posted a net profit of 82 billion VND, 2.7 times higher than the same period last year. The company stated that the majority of the profit increase was due to financial investments and group restructuring.

For the first nine months of the year, the company's revenue reached VND 6,670 billion, a decrease of 30%, while after-tax profit increased by 75% compared to the same period last year, reaching VND 647 billion.

Thi Ha

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