KIDO convenes extraordinary shareholders meeting on Celano and Merino brands

In a resolution announced on December 10th, KIDO stated that the Celano and Merino brands and trademarks are currently owned and managed by the group.

In 2024, KIDO's profits were affected by the restructuring of the company's business model and product lines, as well as the impact of market fluctuations. - Photo: N. BINH

The Board of Directors of KIDO Group (HOSE: KDC) has just decided to convene an extraordinary general meeting of shareholders to seek opinions regarding the Celano and Merino ice cream brands. According to the resolution announced on December 10th, KIDO stated that the Celano and Merino brands are currently under the direct ownership and management of the group. Notably, the Celano brand's industrial property rights were transferred entirely from KIDO Frozen Foods Co., Ltd. (Kido Foods) to KIDO under Decision No. 126465/QD-SHTT dated December 28, 2023. This information has attracted attention because Celano and Merino have long been associated with the Kido Foods brand – a unit that KIDO no longer controls after the share transfer. In September 2024, Nutifood completed the acquisition of 51% of Kido Foods' shares, officially becoming the controlling entity of the company. KIDO currently holds only 49% of the shares in Kido Foods. KIDO's transfer of ownership of the Celano and Merino brands to the group can be understood as a strategic move to protect brand value amidst changes in Kido Foods' shareholder structure. At the upcoming extraordinary shareholders' meeting, in addition to matters related to the Celano and Merino brands, KIDO's leadership plans to seek further approval regarding the share sale transaction in Kido Foods that the group previously conducted. The meeting is scheduled for January 24, 2025, with the record date being December 30, 2024.

The announcement also contained noteworthy information: "While awaiting a decision from the shareholders' general meeting , all activities related to the Celano and Merino brands must be approved or authorized by the owning entity." Kido Foods was formed in 2003 from the acquisition of Wall's ice cream factory, and subsequently launched two popular brands: Merino in 2004 and Celano in 2005. These were considered the company's "golden goose" until they were sold. This extraordinary shareholders' general meeting is expected to strongly impact KIDO's business strategy in 2025, especially in the context of fierce competition in the food and consumer goods industry in Vietnam. In 2024, KIDO set a revenue target of VND 13,000 billion and a pre-tax profit target of VND 800 billion. However, for the first nine months of the year, KIDO recorded revenue of only VND 5,980 billion, a decrease of 13%. Pre-tax profit reached VND 70 billion, while after- tax profit was VND 54 billion, a decrease of 92% compared to the same period in 2023. Thus, after nine months, the company has only completed 46% of its revenue plan and 8.7% of its profit plan. Regarding its financial situation, as of September 30, 2024, KIDO's total assets reached VND 12,447 billion, a slight increase compared to the beginning of the year.

Source: https://tuoitre.vn/kido-trieu-tap-co-dong-hop-bat-thuong-ve-thuong-hieu-celano-merino-20241210233628723.htm