Kido reports 70 per cent decrease in pre-tax profit

Kido reports 70 per cent in pre-tax profit

According to the business statement of the fourth quarter of last year, Kido reported VND1.89 trillion ($82.2 million) in net revenue, down 2 per cent on-year due tobleak performance in the ice-cream and yoghurt segment.

For the whole year, Kido acquired VND7.6 trillion ($330.4 million), up 8 per cent, while pre-tax profit decreased by 70 per cent to VND200 billion ($8.7 million). At the beginning of the year, the company set the target to acquire VND12 trillion ($521.7 million) in revenue and VND800 billion ($34.8 million) in pre-tax profit.

On the transaction session of January 25, Kido’s shares fetched VND20,550 ($0.89) per share, only half of their valuation last year. The company’s capitalisation was estimated at VND4.43 trillion ($192.6 million).

Frozen foods, particularly ice-cream and yogurt used to be a strength of the company. KIDO Frozen Food JSC (KDF) under Kido was the leader of the ice-cream market with a market share jumping from 38 per cent in 2016 to 40.2 per cent in 2017 as sales grew by 15.7 per cent. The company set the target to hold 50 per cent share of the ice cream market in Vietnam by 2020.

However, at present, Kido is focusing on developing in the cooking oil segment. In last November, Kido completed the purchase of 51 per cent in Golden Hope Nha Be, which was a 51-49 joint venture company between Sime Darby Plantation from Malaysia and Vocarimex (a Kido subsidiary).

Golden Hope Nha Be is one of the leading cooking oil manufacturers in Vietnam with the revenue of VND1.3 trillion ($56.5 million). It is known for its Marvela and Ong Tao brands, among others.

Previously, Nguyen released that Kido has completed negotiations for the purchase of a food manufacturing and processing firm which has an annual revenue of VND1.6-2 trillion ($69.6-87 million). In late May 2017, the company wrapped up the purchase of more than 32.8 million shares of Vocarimex, increasing its total stake to more than 62.1 million, equal to 51 per cent.

Besides, in November 2016, Kido spent more than VND1 trillion ($43.5 million) on buying 65 per cent of Tuong An Vegetable Oil JSC.