Vinamilk: 9-month accumulated revenue, fulfilling 76% of the 2020 target
admin 2-11-2020, 23:22


Vinamilk: 9-month accumulated revenue, fulfilling 76% of the 2020 target

Accordingly, in the third quarter of 2020, consolidated net revenue reached VND 15,563 billion, an increase of 8.9% compared to the same period in 2019. In which, domestic business recorded net revenue of VND 13,264 billion, an increase of 8.9% over the same period in 2019 and accounted for 85% of consolidated net revenue. Domestic net revenue of the parent company reached 11,902 billion VND, up 1.5% over the same period in 2019.

According to Vinamilk, the second Covid-19 outbreak at the end of July 2020 had an impact on sales, but the situation improved in September 2020. Most key industries recorded growth compared to the same period in 2019 thanks to appropriate marketing strategies and new product launches to meet the nutritional needs of increasing consumer resistance. Typically, Vinamilk introduced Vinamilk Fresh Milk and Grow Plus Children’s Powdered Milk containing swallow nest in the third quarter of 2020, bringing the total number of products launched and re-launched in the first 9 months of the year to more than 15 products.

Vinamilk started merging GTNFoods Joint Stock Company (GTN) from the beginning of this year. GTN’s dairy business – Moc Chau Dairy Joint Stock Company (MCM) – recorded net revenue of 775 billion dong, up 13.7% over the same period in 2019 due to increased consumer demand for MCM products. With the policy of expanding and supporting distributors and customers with reasonable prices.

During this time, MCM introduced 03 new liquid milk and yogurt products. In addition, MCM officially put into use the ERP resource management system since the beginning of October 2020, contributing to improving the quality of reporting information and improving corporate governance practices.

Export activities recorded net revenue of VND 1,576 billion, an impressive growth of 19.5% over the same period in 2019 and accounted for 10% of consolidated net revenue thanks to stable demand and efficient business operations. . In addition, the revenue of Angkor Milk – a subsidiary of Vinamilk in Cambodia – continued to grow over 20% over the same period in 2019.

In the first 9 months of 2020, consolidated net revenue of Vinamilk reached 45,211 billion dong, up 7.4% over the same period in 2019 and completing 76% of the year plan. In which, domestic net revenue reached 38,720 billion VND, up 8.1% compared to 2019; MCM alone, net revenue reached 2,142 billion VND, up 9.8% as compared to the same period in 2019 and completed 74% of the year plan. Vinamilk’s net export revenue reached 4,027 billion dong, up 11.8% over the same period in 2019; net sales of foreign branches reached VND 2,465 billion.

Also according to Vinamilk’s report, the consolidated gross profit margin in the third quarter of 2020 reached 46.7%, an increase of 30 bps compared to the average of the first 6 months. MCM’s gross profit margin is 34.6%, up sharply from 19.4% of the same period in 2019 thanks to operational optimization measures to save costs.

Consolidated selling and administrative expenses for the third quarter of 2020 were VND 3,743 billion, equivalent to 24.1% of net revenue compared to 25.3% of the same period in 2019. This percentage has decreased significantly thanks to the effort appropriate cost control force to ensure operational efficiency during the Covid-19 epidemic.

Consolidated profit after tax (EAT) in Q32020 reached VND 3,138 billion. Consolidated net profit margin reached 20.2%, an increase of VND 143 billion compared to the same period in 2019. For GTN and MCM, EAT is 87 billion VND and 102 billion VND, respectively, respectively three-digit growth of 289% and 113% compared to the same period in 2019. GTN and MCM’s profit increased significantly faster than revenue thanks to improved gross profit margin, strong financial revenue (for GTN) and CIT incentives (for MCM).

In the first 9 months of 2020, consolidated gross profit margin reached 46.5%, a slight decrease of 80 bps compared to the same period in 2019. Consolidated net profit reached VND 9,000 billion and completed 84% of the year plan. Net profit margin remained on par with the same period in 2019 at 19.9%. For GTN, consolidated EAT is 176 billion dong, up by 174% YoY and 77% higher than the year target. For MCM, EAT is 209 billion dong, up by 69% YoY, 33% higher than year target. MCM’s NPAT margin reached 9.7%, up 340 bps over the same period in 2019.

As of September 30, 2020, Vinamilk shares closed at VND 108,900, equivalent to a P / E of the most recent 12 months at 20.2x (estimated by Vinamilk). At this price point, Vinamilk shares recorded a 14% increase YTD compared to the 6.4% decline of the VNIndex.

Source: vietnamfinance.vn – Translated by fintel.vn

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