Vinamilk milking the market for healthy profits

March 30, 2011 | 14:19

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Vietnam’s dairy giant Vinamilk (VNM) is anticipating to reap a revenue target of $1 billion this year, instead of 2012 as previously planned.

In its business plan for 2010-1012 period set up last year, Vinamilk expected revenue of VND18 trillion ($870 million) in 2011 and at VND22 trillion ($1.06 billion) in 2012.

“The target of getting $1 billion in revenue this year is within the reach,” said Mai Kieu Lien, general director for Vinamilk. According to Lien, the revenue in 2011’s first quarter alone had been estimated at some VND4.7 trillion ($227 million).

The diary producer said it was strongly expanding production scale. The raw milk production is planned to increase five-fold within this year.

Besides, Vinamilk said it reserved a 3 per cent stake to offer foreign investors via private placement.

“Private placement is much simpler in procedures and also more effective [than public offering] given the current gloomy market,” said the company’s representative.

In 2010, Vinamilk had VND16 trillion ($773 million) in total revenue and VND2.85 trillion ($138 million) in after-tax profit. The company planned to pay dividend for its shareholders at 30 per cent by cash.

By Hai Linh

vir.com.vn

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