Vietnam’s leading food firm Kido Corporation (Kido) has completed the negotiations for the purchase of a food manufacturing and processing firm which has an annual revenue of VND1.6-2 trillion ($70.4-87.9 million).
|Kido to conduct an M&A deal in food sector |
This was announced by Tran Le Nguyen, the general director of Kido. Nguyen added that in 2018, Kido expects to achieve a breakthrough in business results with the aim to acquire VND12 trillion ($527.68 million) in revenue and VND800 billion ($35.2 million) in pre-tax profit, signifying increases of 68 and 40 per cent.
According to Nguyen, this year, the company estimated to earn an additional VND2.5 trillion ($109.9 million) in revenue from instant noodles, beverages, and sauces. Especially, in the instant noodle segment, Kido will co-operate with an unidentified Thai firmto expand manufacturing and distributing operations.
Besides, Kido will partner up with another Thai firm to establish a joint venture company specialising in manufacturing tea and drinks mixed with milk.
Furthermore, in order to realise these targets, Kido spent massive efforts to integrate Vocarimex and Tuong An, which had different corporate cultures as well as working processes.
|The highlight of Kido’s business results last year was the soaring revenue thanks to the contribution of newly acquired Vocarimex and Tuong An. |
The highlight of Kido’s business results last year was the soaring revenue thanks to the contribution of newly acquired Vocarimex and Tuong An.
Notably, Kido reported a net revenue of over VND7 trillion ($308.2 million), doubling the 2016 figure, with a gross profit of VND1.49 trillion ($65.6 million) and pre-tax profit of VND569 billion ($25.05 million).
Along with the acquisition of Vocarimex and Tuong An, Kido teamed up with TTC Group to produce and distribute sugar. The two signed a strategic partnership in Ho Chi Minh City to increase market presence. Accordingly, Kido will distribute 60,000 tonnes of Bien Hoa Sugar in 2018. The sum is projected to reach 200,000 tonnes by 2020.
Under the plan, Kido will exclusively distribute some of TTC’s refined sugar products via its network of 200 distributors and 450,000 retail points. In addition to distribution, Kido will be responsible for achieving annual sales targets and expanding product coverage. Meanwhile, TTC will produce sugar and grant distribution rights over some of its products to Kido.