23:14 (GMT +7) - Friday 20/10/2017

Business

KIDO acquires 51% of Vocarimex

Released at: 20:06, 23/05/2017

KIDO acquires 51% of Vocarimex

Photo: Gia Khiem/thanhnien.vn

Company strengthens its position as a major player in the edible oils industry with latest purchase.

by Quynh Nguyen

The KIDO Group Corporation (KDC) has officially completed a deal to purchase 32.886 million shares of the Vietnam Vegetable Oils Industry Corporation (Vocarimex).

KDC raises its ownership in Vocarimex to 51 per cent with the purchase, becoming one of the leading producers in Vietnam’s cooking oil industry.

The Ho Chi Minh City-based group now dominates the industry, with 51 per cent of Vocarimex, 65 per cent of Tuong An Vegetable Oil JSC (TAC), and major holdings in associated companies.

With a majority ownership in Vocarimex, KDC will become more involved with large cooking oil companies in the country because Vocarimex is a leading player in the edible oil industry.

The vegetable oil producer has a network of subsidiaries and associated companies that hold a large market share in the industry, such as TAC, the Cai Lan Oil Company, the Golden Hope Nha Be Cooking Oil Company, and the Tan Binh Vegetable Oil JSC. It owns 27 per cent of TAC, 49 per cent of Golden Hope Nha Be, 24 per cent of Cai Lan, and 17.84 per cent of Tan Binh.

Vocarimex’s revenue reached VND4.15 trillion ($182.6 million) in 2016.

KDC spent some VND1 trillion ($44.35 million) on acquiring 65 per cent of TAC, the largest subsidiary of Vocarimex and the No.2 player in the domestic cooking oil market. Its revenue reached VND3.97 trillion ($174.6 million) last year.

KDC has quickly gained a major position in the edible oil and frozen food industry through mergers and acquisitions (M&As) three years after selling its confectionery business to a foreign investor.

It has huge ambitions in the market. The group will continue to conduct M&As with food companies and OEM (Original Equipment Manufacturer) businesses to maximize their advantages in distribution channels.

The group also revealed that it is in process of cooperating with foreign partners to develop its business activities.

KDC’s consolidated results for the first quarter of this year, with net sales of VND1.25 trillion ($55 million), were driven by growth in its frozen food business and the inclusion of TAC.

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 at VND30.4 billion ($1.3 million), increases of 34.5 per cent and 10.4 per cent, respectively, year-on-year.

2017 will mark another key milestone, with its frozen food business expanding into new product segments. By maximizing its existing cold chain, the KIDO Frozen Food JSC (KDF) will begin selling additional products.

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