21:09 (GMT +7) - Thursday 17/08/2017

Business

KIDO acquires 50% of Dabaco Food

Released at: 14:36, 26/06/2017

KIDO acquires 50% of Dabaco Food

Photo: Dabaco

Holding picked up for $4.4 million.

by Quynh Nguyen

Northern livestock giant the Dabaco Group JSC has decided to sell 50 per cent of its subsidiary Dabaco Food to the KIDO Corporation Group for VND100 billion ($4.4 million).

Dabaco also transferred 5 per cent of Dabaco Food to Mr. Nguyen Nhu So, Dabaco’s Chairman.  

After completing the sale, Dabaco will hold 45 per cent of its subsidiary’s capital, equal to VND90 billion ($3.96 million).

Dabaco Food, which has charter capital of VND200 billion ($8.8 million), owns three plants slaughtering, processing, and preserving cattle and poultry, with a capacity of 25,000 chickens a day, packaging canned meat and sausages, and producing and preparing frozen meat and fresh meat.

Under the sale, Dabaco Food will be an outsourcing company while KIDO will fully control products and brands.

KIDO’s CEO Tran Le Nguyen said the acquisition of Dabaco Food and several other companies is aimed at expanding product lines to take advantage of its distribution network. Dabaco’s products are currently only distributed from Hanoi to north-central Ha Tinh province and will now be distributed nationwide. 

By investing in Dabaco Food, KIDO now has a presence in three key segments in the food industry: fresh food (meat and sausages), frozen food, and canned food.

In 2016, the Dabaco Group recorded revenue of VND8.9 trillion ($391.6 million), 5 per cent higher than planned. After-tax profit stood at VND451 billion ($19.8 million).

The company this year targets total revenue of VND9.3 trillion ($409.2 million) and VN320 billion ($14.08 million) in after tax profit.

Dabaco has also expanded its business into retail and entertainment. Dabaco Mart was recently launched in Tu Son Town, northern Bac Ninh province, with investment  of over $10 million. 

KIDO’s consolidated results for the first quarter of this year included net sales of VND1.25 trillion ($55 million), driven by growth in its frozen food business and the inclusion of the Tuong An Vegetable Oil JSC.

Growth in net sales was 217.4 per cent year-on-year. Its frozen food business grew 10 per cent and recorded net sales of VND260 billion ($11.4 million) thanks to solid contributions from its new Bac Ninh factory.

Pre-tax profit stood at VND41.7 billion ($1.8 million) in the first quarter and after-tax profit VND30.4 billion ($1.3 million), increases of 34.5 per cent and 10.4 per cent, respectively, year-on-year.

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