KDF becomes new UpCom eye-candy

KDF is seeing strong trading sessions on UpCom

Notably, on September 28, KDF made 56 million shares, representing a capitalisation of VND2.71 trillion ($119.2 million), officially available for trading at the initial reference price of VND60,000 ($2.64) apiece. After the first transaction, 1.17 million shares were handed over to investors, 678,000 shares of which were taken over by foreign investors.

On the second day of transaction, foreign investors continued buying into the company with gusto.

According to Euromonitor’s report, in 2017, the Vietnamese ice-cream and frozen dessert industry has soared by 7 per cent in quantity and 15 per cent in value. KDF maintains its first position in terms of market share with 40 per cent, up 2 per cent on-year.

Euromonitor, the world's leading independent provider of strategic market research, reported that KDF has numerous competitive advantages, including advantages in terms of taste, price, product diversity, as well as coverage. The market research firm highlighted Merino and Celano as two of KDF’s outstanding brands.

At present, KDF’s products are sold in two channels. One is the traditional channel, including distributors, second-tier agencies, and retail agencies, while the second is a more modern channel, namely supermarkets, convenience stores, hospitals, industrial parks, canteens, as well as large-scale amusement areas. In the coming time, convenience stores, supermarkets, and hypermarkets are considered important distribution channels of the ice-cream industry in general and KDF in particular.

In 2017, KDF has opened an additional 10,000 retail points, increasing the number of its total retail points to 80,000 across the country.

Continuously expanding its distribution system and diversifying its products have contributed to KDF’s increase in market share, leading to an increase in revenue. Notably, in the nine months of this year, the company earned VND1.23 trillion ($54.1 million) in net revenue, up 7.8 per cent on-year.

The company has been investing in facilities, including factories and freezers for retail agencies, to expand its operation.

Notably, in November 2016, it took the Bac Ninh frozen food factory into operation, with the annual capacity of 6,000 tonnes of ice-cream and 9,000 tonnes of yogurt, 170 per cent higher than the total capacity of its existing factory in Ho Chi Minh City. The factory helps to decrease logistics expenditure and contributes to increasing the coverage for its products in the northern region.

Besides, it bought an additional 10,000 freezers for retailers, increasing the number of its total freezers to 50,000.

According to the KDF management board, the expenditures for operation expansion have short-term impacts on revenue and profit, however, these investments are necessary to maintain its leading position as well as penetrate the frozen food manufacturing industry, which is considered more lucrative than the ice-cream sector, with the expected value of VND4.19 trillion ($184.3 million) by 2022.

In 2016, KDF started expanding its operations in the frozen food manufacturing sector via debuting a variety of dumplings to meet the different demands for taste in different regions.

Besides, KDF also entered into a co-operation with Dabaco Foodstuffs Processing Co., Ltd. to produce numerous new frozen products, including fresh sausages and canned food among others, which are expected to debut in the fourth quarter of this year.

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