Bibica reveals soaring profits

Chocolate pies production line at a Bibica factory in the southern province of Binh Duong. The company targets total revenues of VND1.2 trillion (nearly $57 million) this year, a year-on-year increase of 14 per cent year-on-year. - VNA/VNS Photo Chi Tuong

The company's sales also increased 15 per cent year-on-year, totaling VND431 billion ($20.4 million), general director Truong Phu Chien said at a shareholders' meeting in HCM City on Wednesday.

Chien said they have targeted total revenues of VND1.2 trillion (nearly $57 million) this year, a year-on-year increase of 14 per cent year-on-year, for net profits of VND48.5 billion ($2.3 million).

It has also decided to keep its cash dividend for 2014 unchanged at 12 per cent, he said.

It will pay VND18.5 billion ($877,000) as a 12 per cent dividend on 2013 business results.

Last year, Bibica posted total sales of VND1.053 trillion ($50 million) and a net profit of VND45 billion ($2.1 million).

The corporation plans to raise its market share to 11 per cent this year by expanding production capacity.

Bibica projects to invest VND145.4 billion ($6.9 million) to expand its Hung Yen factory, using VND73 billion ($3.5 million) to develop jelly candy production and VND11.5 billion ($545,000) for increasing production of Hura layer cakes.

Chien said the firm would focus on developing its major brands with total sales of over VND100 billion ($4.7 million), focusing in particular on high-end herbal candies.

Regarding concerns over low liquidity of Bibica's shares, Chien explained that strategic shareholders like Lotte and Saigon Securities Inc (SSI) holding 83 per cent of the total capital and free-floating shares on the market accounted for just 6 per cent of the firms shares.

BBC stocks declined 0.9 per cent Wednesday to close at VND57,000 ($2.70) per share on the HCM City Stock Exchange despite the positive business results. The trading volume was just several hundreds to a few thousands shares each session.

Despite stiff competition in the market, other big confectioners like Kinh Do Corp (KDC) and Bien Hoa Sugar Co (BHS) have also posted good performances this year.

Kinh Do Corp's revenues in the first five months rose 30 per cent year-on-year to VND1.454 billion ($68.9 million) and its pre-tax profits increased 6 per cent to VND112 billion ($5.3 million).

BHS has yet to release its second-quarter business results but its net profit in the first three months climbed 47 per cent year-on-year to more than VND20.4 billion ($1 million).