Vinamilk posts highest quarterly profit since 2021

A customer at a plant-based milk counter of Vinamilk. — Photo courtesy of Vinamilk

HÀ NỘI — In the second quarter of this year, Vinamilk achieved a revenue of VNĐ16.6 trillion and a pre-tax profit of over VNĐ3.3 trillion, the highest in eleven quarters.

According to the consolidated financial report for Q2 from Vietnam Dairy Products Joint Stock Company (Vinamilk, HoSE: VNM), revenue and pre-tax profit increased by 9.5 per cent and 21.3 per cent, respectively, compared to the same period in 2023. This marks the highest quarterly profit for Vinamilk in four years, since Q4 2021, with a pre-tax profit of VNĐ3.3 trillion.

Vinamilk maintains a healthy balance sheet with high liquidity, total assets amounting to VNĐ54.2 trillion and liabilities at VNĐ15.8 trillion, a decrease of 10 per cent from the beginning of the year.

Mai Kiều Liên, CEO of Vinamilk, stated in a press release that Vinamilk had an exceptional quarter, setting a new record for consolidated revenue. More importantly, the revenue grew across all segments, including domestic, exports and subsidiaries both within and outside the country.

Liên attributed the strong results to continuous product innovation, enhanced service quality, market expansion, optimised operational efficiency and a vigorous strategy of renewal. The company’s leadership is confident in its 2024 business plan, given the improving macroeconomic conditions and ongoing innovative strategies.

Regarding revenue structure, the international market contributed 18.5 per cent to the consolidated revenue for Q2 2024. Export revenue reached VNĐ1.740 trillion, up 37 per cent year-on-year and higher than the 5.9 per cent increase in Q1 2024.

In addition to strengthening traditional markets, Vinamilk is exploring new opportunities by supplying to global chains. This strategy aims to expand Vinamilk’s product presence in the Australasian region, while Africa and South America are also emerging as potential markets.

Vinamilk plans to continue focusing on those markets, leveraging free trade agreements and building strategic partnerships.

In Q2, Vinamilk also intensified its trade promotion activities, engaging in international trade connections through participation in various fairs and exhibitions domestically and internationally, such as Vietnam Sourcing, connecting with global retailers and supply chains and exhibitions in China, South America, Japan and Taiwan.

The main revenue source from the domestic channel reached VNĐ11.8 trillion in Q2 2024, up 3.8 per cent year-on-year, marking the highest growth in three quarters, driven by the growth of drinking yoghurt, condensed milk and plant-based milk.

Vinamilk has introduced several product packaging innovations, such as new Probi drinking and eating yoghurt and a new high-protein plant-based milk product.

A representative from Vinamilk receives the award in the ‘Green Leadership’ category at the Asia Responsible Enterprise Awards (AREA) 2024.

Vinamilk continues to focus on sustainability. In 2024, Vinamilk continued its ‘Rising Vietnam Milk Fund’ for the 17th year, donating 630,000 milk cartons to over 8,000 disadvantaged children. Additionally, Vinamilk’s Net Zero 2050 action plan is actively being implemented with activities such as greenhouse gas inventory according to ISO 14064, reforestation for carbon absorption and carbon neutrality efforts for its subsidiaries.

Vinamilk’s Net Zero 2050 action plan gained significant attention at the 2024 Global Dairy Conference in the United Kingdom, where Vinamilk was the only Asian dairy company to receive the Asia Responsible Enterprise Award (AREA) 2024 in the ‘Green Leadership’ category.

On the stock market, VNM shares have been net bought by foreign investors for seven consecutive sessions, totalling approximately VNĐ395 billion. As of the close on 30 July, VNM was trading at VNĐ67,700 per share.

In June 2024, according to the prestigious Brand Footprint report by Kantar Worldpanel, Vinamilk was the most purchased dairy brand in Việt Nam in 2024 and among the top three most purchased FMCG manufacturers in both rural and urban areas.

According to Kantar Vietnam, continuous innovation and dynamism in meeting new demands have helped Vinamilk maintain this position for the 12th consecutive year. — VNS