Group releases business results for first quarter, with handsome growth in all indicators.
The KIDO Group Corporation (KDC) has released its consolidated results for the first quarter of this year, with net sales of VND1.25 trillion ($55 million), driven by growth in its frozen food business and the inclusion of vegetable oil producer the Tuong An Company (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.
Gross profit stood at VND244.9 billion ($10.7 million), an increase of 52.9 per cent year-on-year, due to additional business. The gross profit margin fell due to the inclusion of TAC.
TAC’s gross profit margin improved from 10 per cent to 11.3 per cent in the first quarter and should continue to improve based on continued restructuring of its product portfolio.
KDC’s 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 the existing cold chain, the KIDO Frozen Food JSC (KDF) will begin selling additional products.
The Bac Ninh factory officially commenced operations at the end of 2016 and will boost KDC’s market presence in the north and increase operating efficiencies by saving on logistics costs.
KDC announced it will sell 35 per cent of KDF in March. Deputy Chairman and CEO Tran Le Nguyen told a conference introducing investment opportunities in KDF that 11.2 million shares, or 20 per cent, will be offered this month at a starting price of VND52,000 ($2.3) per share. The remaining 15 per cent will then be offered to partners and employees.
Post-IPO, KDF plans to conduct merger and acquisitions (M&As) with dairy and frozen food companies that have good nationwide distribution systems. It will trade on the UPCoM market and will soon list on the Ho Chi Minh Stock Exchange (HoSE).
KDF targets holding a 50 per cent share of the ice cream market in Vietnam by 2020, General Director Tran Quoc Nguyen said at the group’s roadshow in Hanoi on March 31 introducing investment opportunities.
Last year, KDC purchased a 65 per cent stake in TAC, which is the second-largest cooking oil company in the country, with a 22 per cent market share.
The move “is considered a long-term commitment by KIDO with TAC to strengthen the development of TAC’s core businesses activities,” according to a TAC statement.
KDC (formerly Kinh Do Corporation) was established in 1993 and has grown to become one of the leading consumer product companies in Vietnam. Throughout the past 23 years of growth and development, KDC has expanded beyond the confectionary category to include ice cream, yogurt, desserts, frozen foods and edible oils.
Its vision is to serve the needs of Vietnamese consumers by providing them with daily food products in various brands that enhance lifestyles and meet consumer needs throughout the day.