Reasons why Vinamilk consistently ranks among the top companies after privatization.

Efficient production and business operations have helped Vinamilk's revenue increase 15 times and pre-tax profit increase 13 times since its equitization in December 2003.

Last weekend, Vinamilk was included in the Top 50 Most Efficient Companies in Vietnam, as announced by Nhip Cau Dau Tu Magazine in collaboration with Thien Viet Securities Company. Vinamilk, along with 49 other companies on the ranking, holds 34% of the total market capitalization, equivalent to $80 billion. With a return on equity (ROE) of 30% and a market capitalization of $6.57 billion, Vinamilk is the only representative from the dairy industry to be named in this year's ranking.

The Top 50 list measures the business performance of companies over three consecutive years, based on three growth indicators: revenue, return on equity (ROE), and earnings per share. According to the organizers, this year's list of 50 companies shares many commonalities, most notably the level of commitment of the leadership team to the core business and the trend towards sustainable development according to ESG (environment, society, governance) criteria. Sustainable development is also one of Vinamilk's four strategic priorities for the 2022-2026 period.

Mr. Do Thanh Tuan - Director of External Relations at Vinamilk - received the title of Top 50 Most Efficient Business Companies in Vietnam in Ho Chi Minh City on September 16th. Photo: Nhip Cau Dau Tu (Investment Bridge).

2023 marks the 20th anniversary of the dairy giant's transition to a joint-stock company model. At the time of its equitization, Vinamilk's charter capital was 1,590 billion VND; by the end of 2022, the company's market capitalization had exceeded 159,000 billion VND.

Vinamilk is also among the top companies with the highest cash dividend payouts on the stock exchange, with a total payout value of over 76,700 billion VND during the period 2004-2022. The company currently holds the number one position in the domestic dairy market share.

Vinamilk's business performance after privatization. Photo: VNM

Previously, the dairy giant had also been included in Forbes Vietnam's list of the 50 Best Listed Companies for 11 consecutive years. According to this list, in 2022, Vinamilk ranked 5th in terms of market capitalization, with revenue and after-tax profit reaching over VND 60,000 billion and nearly VND 8,600 billion respectively. This year, the company aims for total revenue of VND 63,380 billion, a 5.5% increase compared to the previous year, and after-tax profit of VND 8,622 billion.

According to a Forbes report, Vinamilk holds a dominant market share in several key product categories. The company owns over 146,000 dairy cows (including its own farm system and cooperative farms), operates 15 farms in Vietnam and Laos, and has 16 dairy factories.

Mr. Nguyen Quoc Khanh - Director of Research & Development at Vinamilk - received the title of Top 50 Best Listed Companies in Vietnam in 2023 in Ho Chi Minh City on August 17th. Photo: Forbes

The company has also consistently increased its brand value in assessments by international valuation firms. In August of this year, Brand Finance announced that Vinamilk's brand value continues to increase, reaching US$3 billion from over US$2.8 billion last year. As a result, the company moved up one rank to number 2 in the Top 100 most valuable brands in Vietnam, further solidifying its position as the most valuable food brand in Vietnam and the 6th largest dairy brand globally. Vinamilk is the only representative from Southeast Asia in the Top 5 most sustainable dairy brands globally.

Ms. Bui Thi Huong, Director of Human Resources - Administration - External Relations, representing Vinamilk, receives certifications from Brand Finance in Hanoi , August 2023. Photo: Mibrand

"Vinamilk is driving sustainable development trends in the food industry, accurately addressing the needs of consumers who are increasingly conscious about their food choices. As a result, they remain the most popular brand among Vietnamese people," said Alex Haigh, Managing Director for Asia Pacific at Brand Finance.

Hoang Anh

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