Q2/2024: Vinamilk reported highest revenue growth in two years

DNHN - Vinamilk has just announced its Q2/2024 business results with several highlights. Notably, consolidated total revenue reached a record high of 16,665 billion VND, making this the highest growth quarter since the beginning of 2022.

Record Revenue

Vinamilk's consolidated total revenue for Q2/2024 reached 16,665 billion VND, surpassing the previous peak of 16,194 billion VND in Q3 2021 to become the highest revenue quarter. This quarter also marks the highest growth for the company since early 2022, with a 9.5% increase year-on-year.

This result was supported by both domestic and international business activities, with growth rates of 5.8% and 29.9% respectively compared to the same period last year. With the acceleration in Q2/2024, the cumulative consolidated total revenue for the first six months of 2024 reached 30,790 billion VND, up 5.6% year-on-year and completing 48.7% of the annual plan.

The gross profit margin expanded by 2 percentage points to 42.4% due to strong revenue growth and proactive adjustments in purchasing policies in line with raw material price movements. Consolidated net profit after tax for Q2/2024 reached 2,695 billion VND, up 20.9% year-on-year. For the first six months, net profit after tax reached 4,903 billion VND, up 18.6% year-on-year and completing 52.3% of the annual plan.

According to the financial report by the end of Q2, Vinamilk maintained a healthy balance sheet with high liquidity, total assets amounting to 54,194 billion VND, and a debt-to-total assets ratio of 14.7%. Ms. Mai Kieu Lien, CEO of Vinamilk, noted in the information disclosure that Vinamilk had an outstanding quarter with consolidated total revenue setting a new record. More importantly, revenue growth was achieved across all segments, from domestic to export markets and subsidiary units both within and outside the country.

Ms. Lien attributed this success to continuous product innovation, quality service enhancement, market expansion, operational efficiency optimization, and strong strategic innovation in recent times. The company's leadership also expressed confidence in the 2024 business plan, with improving macroeconomic factors combined with robust ongoing innovation strategies.

Export acceleration and stable domestic revenue growth

In terms of revenue structure, the foreign market contributed up to 18.5% of consolidated total revenue in Q2/2024. Specifically, export net revenue reached 1,740 billion VND, up 37% year-on-year, surpassing the 5.9% increase in Q1/2024. Continuous product innovation and maintaining close relationships with partners in key export markets amidst global fluctuations have been the growth drivers for export activities in recent quarters.

Vinamilk is not only strengthening traditional markets but also opening new opportunities by supplying to global chains. This orientation is bringing Vinamilk products to more areas in Oceania. Concurrently, Africa and South America are emerging as potential markets for the company.

In the coming time, Vinamilk will focus on emerging markets, leverage free trade agreements, and build strategic partnerships. In Q2, Vinamilk intensified trade promotion activities and international trade connections by participating in numerous international fairs and exhibitions such as Vietnam Sourcing, connecting with global retailers and supply chains, exhibitions in China, South America, Japan, Taiwan, and more.

Vinamilk is leveraging sustainable development strategies as a competitive advantage in exports, creating a "new breeze." For instance, products exported to Australia and New Zealand with environmentally friendly packaging, with plans for 100% recyclable packaging by 2025 for this region.

Domestically, main revenue sources amounted to 11,850 billion VND in Q2/2024, up 3.8% year-on-year and marking the highest increase in the past three quarters. This growth was driven by double-digit increases in categories such as drinking yogurt, condensed milk, and nut milk, thanks to continuous product improvements, distribution channel expansion, and effective marketing. In Q2 alone, Vinamilk introduced several product packaging innovations for products like Probi yogurt and launched a new high-protein nut milk product alongside an advertising campaign for 100% Fresh Milk.

In June 2024, the prestigious "Brand Footprint" report by Kantar Worldpanel named Vinamilk as the most purchased milk brand in Vietnam for 2024 and among the top 3 most purchased FMCG producers in both rural and urban areas. According to Kantar Vietnam, continuous innovation and responsiveness to new demands have helped Vinamilk maintain this position for 12 consecutive years.

Vinamilk continues to implement sustainable development initiatives. In 2024, the company has continued its "Rising Vietnam Milk Fund" for the 17th year, donating 630,000 milk cartons to over 8,000 disadvantaged children. Additionally, the company is pursuing its Net Zero 2050 action plan, conducting greenhouse gas inventories according to ISO 14064, planting forests to absorb carbon, and moving towards carbon neutrality for its subsidiaries.

Vinamilk's Net Zero 2050 action plan gained significant attention at the 2024 Global Dairy Congress in the UK, where Vinamilk was the only Asian dairy company to receive the 2024 Asia Responsible Enterprise Awards (AREA) in the "Green Leadership" category.

Quynh Anh