21:48 (GMT +7) - Wednesday 18/07/2018

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Digiworld acquires stake in FMCG company

Released at: 14:25, 03/11/2017

Digiworld acquires stake in FMCG company

Photo: DGW

Electronics distributor picks up holding in CL Company.

by Khanh Chi

The Digiworld Venture Company Limited, a subsidiary of the Digiworld Corporation, has recently completed a merger & acquisition (M&A) deal to purchase a 50.3 per cent stake in the CL Company Ltd., a fast-moving consumer goods (FMCG) concern in Vietnam.

According to its third quarter business report, consolidated after-tax profit for the third quarter was $1.2 million on net revenues of $50.4 million, up 14.2 per cent and 10 per cent quarter-on-quarter, respectively.

Revenue was $118.7 million in the first nine months and after-tax profit $2.5 million.

The third quarter saw robust earnings growth thanks to the exploitation of market expansion services (MES), bringing in more added value to new product lines, Digiworld noted in a statement. It acquired the 50.3 per cent of CL via its subsidiary, Digiworld Venture.

Founded in 1998, CL specializes in distributing high-end FMCG products from Japan such as Kodomo toothpaste, Zact Lion whitening toothpaste, Systema toothbrushes, Essense detergent liquid, Bio Zip detergent powder, and Bubbi King dishwashing liquid. Its distribution network covers all 63 cities and provinces in Vietnam, including traditional channels and major supermarket chains.

CL is also known as the exclusive partner of the Lion Corporation, the leading Japanese corporation in FMCG with annual revenues of more than $3.4 billion and a staff of nearly 6,900. Lion’s portfolio includes oral care, body care, clothing care, home care, kitchen care, and other healthcare and beauty care products. Lion’s toothpaste is renowned for being the top selling product in Japan.

With its distribution network and Lion’s diversified and reputable product portfolio, this will be the ultimate platform for Digiworld to quickly penetrate, expand, and exploit the promising industry in the future.

Digiworld also announced in August its entry into the local healthcare industry with the debut of its first product, Kingsmen, a supplement for men exclusively distributed by the company. Along with developing its distribution network, Digiworld has set a revenue target for the product line of more than $3.5 million this year, $17.6 million next year, and $44 million in 2019.

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