Vinamilk records great performance last year despite COVID-19

A worker checks Vinamilk's products at its laboratory. Vinamilk's revenue and profit all increased last year (Photo courtesy of Vinamilk)

Hanoi (VNS/VNA) – The Vietnam Dairy Products JSC – Vinamilk (VNM),the largest dairy company in Vietnam, posted a gain in revenue and profit inthe fourth quarter of last year and the whole of 2020 despite disruptions dueto COVID-19.

Vinamilk’s fourth quarter financial report showed an increase of 1.3 percent year-on-yearin net revenue to 14.4 trillion VND. In 2020, its consolidated net revenue rosenearly 6 percent against 2019 to 59.6 trillion VND.

Of which, the company’s net revenue from domestic sales was at 50.8 trillionVND, up 6.9 percent year-on-year, while net revenue from international salesslightly increased by 0.35 percent to nearly 8.8 trillion VND.

Last year, Vinamilk’s foreign trade posted good performance as it expandedbusinesses to new markets like the Republic of Korea, China and Singapore,regardless of uncertainties due to the pandemic.

In April, the company official exported the first batch of condensed milk toChina, less than two months after being given the green light to export to theworld’s biggest market.

Vinamilk's products were first introduced to Chinese consumers in October lastyear. And it has been cooperating closely with its Chinese counterparts toexport a wide variety of products from milk to other drinks.

It was also allowed to sell products to the Eurasian Economic Union, includingRussia, Belarus, Armenia, Kazakhstan and Kyrgyzstan.

In the fourth quarter, the dairy producer’s also spent more in sales andmanagement activities. The cost was up 7.9 percent to 4.5 trillion VND and itclimbed nearly 7.1 percent to 15.4 trillion VND in 2020.

Its profit after tax gained 2.7 percent year-on-year to 2.2 trillion VND in thefourth quarter of last year, and increased by 6.5 percent to 11.2 trillion VND in2020. Its profit after tax margin was at 15.5 percent.

In 2020, the company also completed a merger and acquisition deal with GTNFoodsJSC (GTN). Vinamilk bought over 3.4 trillion VND of GTN shares at the end of2019.

Vinamilk was the first and only Vietnamese enterprise recognised as “ASEAN ASSETCLASS” last year and led Vietnam's Top 3 Listed Companies according to the2019 ASEAN Corporate Governance Scorecard results, part of the ASEAN CapitalMarket Forum (ACMF)'s ASEAN Corporate Governance Initiative.

VNM’s shares traded at 106,400 VND on February 2, up 3.6 percent, on the Ho ChiMinh Stock Exchange./.

VNA