Vinamilk posts a 8% decrease in profit in 6 months
Vietnam`s dairy market is expected to double its size by 2020, reaching US$8.2 billion, informed the EU-Vietnam Business Network (EVBN)`s 2016 report.
In the first six months of 2018, Vinamilk - Vietnam's largest dairy producer, posted a net profit of VND5.37 trillion (US$229.5 million), down 8% year-on-year, according to the company's consolidated financial statement.
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Of the total revenue, domestic revenue climbed VND700 billion (US$30 million) year-on-year to VND22.7 trillion (US$972.8 million), while that of overseas business decreased from VND3.88 trillion (US$166.2 million) to VND3.61 trillion (US$154.7 million).
The statement said the company's revenue in the second quarter reached VND13.7 trillion (US$587.2 million), up 3% year-on-year.
However, due to high costs of goods sold, Vinamilk saw a decrease in gross profit margin from 49% to 47.2% during this period.
Moreover, an increase in sale and administrative expenses led to a decline in pre-tax profit of VND283 billion (US$12.1 million) or 8% year-on-year to VND3.16 trillion (US$135.4 million).
This resulted in a decrease of VND256 billion (US$10.97 million) or 9% year-on-year in after-tax profit from VND2.92 trillion (US$125.1 million) to VND2.66 trillion (US$114 million) in the April-June quarter.
As of June 30, Vinamilk's equity and total assets value reached VND26.5 trillion (US$1.13 billion) and VND36.1 trillion (US$1.54 billion), respectively.
Vinamilk set its revenue target in 2018 of VND55.5 trillion (US$2.4 billion), up 8.5% yearly. Under the plan, Vinamilk estimated its after-tax profit to reach VND10.7 trillion (US$473 million), increasing 4.6% over 2017.
Vietnam's dairy industry posted revenue of over VND100 trillion (US$4.4 billion) last year, an increase of 10% over the previous year, with Vinamilk commanding a market share of around 50%, according to the latest statistics.
The local dairy market is expected to double its size by 2020, reaching US$8.2 billion as Vietnam's population is projected to increase by five million people and personal income and dairy consumption are foreseen to increase at 15% and 7% compounded annual growth rate, respectively, informed the EVBN's 2016 report.
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