Wednesday , September 28 2022

Vinamilk profits continue to fall

Vinamilk reported a 26-percent year-on-year fall in second-quarter profits to VND2.1 trillion (US$89.97 million), and blamed it on inflation driving demand down and costs up.

The dairy giant’s revenues fell by 5 percent to VND14.93 trillion.

In the first five months sales of fast moving consumer goods fell by 2 percent, according to data from market research firm Nielsen.

Vinamilk also struggled to maintain its dominance in the domestic market and saw exports drop by 12 percent due to lower global demand and higher transport costs.

However, its profit margin rose by 0.2 percentage points from Q1, the first increase since 2020.

Besides, its U.S. and Cambodian subsidiaries, Driftwood and Angkormilk, reported sales growth of 40 and 20 percent.

This year it expects profits to decline by 7 percent, a second straight year of falling profits, due to rising costs of raw materials and transportation.

But securities brokerages said lower milk powder prices would increase the profit margins for the dairy industry this year, including for Vinamilk.

SSI Securities expects the company’s net profits to rise by 11 percent, while VnDirect Securities forecast a 7.5-percent increase.

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