Vinamilk CEO: Our priority is to continue increasing market share, ensuring business efficiency and dividends for shareholders

DNHN - On April 25, 2024, Vietnam Dairy Products Joint Stock Company (Vinamilk) held its 2024 Annual General Meeting of Shareholders (AGM).

Maintaining revenue growth targets based on expectations of improved macroeconomic conditions, continuing to pay high cash dividends

In the whole year of 2023, Vinamilk achieved VND 60,368 billion in net revenue, an increase of 0.7% year-on-year, marking the third consecutive year that the company has achieved a revenue milestone of over VND 60,000 billion. Consolidated profit after tax reached VND 9,019 billion, up 5.2% year-on-year, and fulfilled 105% of the annual plan.

With positive results in 2023, Vinamilk continues to set higher targets when submitting to the 2024 AGM plans for both revenue and profit growth. Specifically, total revenue is expected to be VND 63,163 billion, an increase of 4.4% compared to 2023. The pre-tax profit target is VND 11,516 billion, an increase of 5%.

Illustration
Vinamilk’s AGM on April 25 attracted the attention of more than 1,200 shareholders participating online
Vinamilk’s AGM on April 25 attracted the attention of more than 1,200 shareholders participating online.

However, Vinamilk is also a company operating in the fast-moving consumer goods (FMCG) industry, which is heavily affected by the difficult macroeconomic situation, inflation, and declining per capita income, creating pressure for both consumers and retailers. In the 2023 Annual Report released in early April 2024, General Director Mai Kieu Lien stated: “Entering 2024, with the expectation that the macroeconomic situation will improve, our priority is to continue to recover market share and sales sustainably and profitably”.

Vinamilk’s Board of Directors also submitted to shareholders a dividend plan for 2023 in cash at a rate of 38.5%. The company has disbursed VND 6,061 billion in three interim dividends to shareholders, with a total rate of 29%.

Thus, Vinamilk will have one more dividend payment at a rate of 9.5% (01 share receives VND 950). With 2.09 billion shares outstanding, the company is expected to disburse an additional VND 1,985 billion to pay the final dividend for 2023. The Board of Directors will decide the record date and payment date but not later than 6 months from April 25.

In 2024, Vinamilk targets revenue of VND 63,163 billion
In 2024, Vinamilk targets revenue of VND 63,163 billion.

Regarding the dividend plan for 2024, Vinamilk plans to maintain the rate of 38.5% (01 share receives VND 3,850), equivalent to 2023. The amount of money the company plans to pay in dividends to shareholders is up to VND 8,000 billion, accounting for about 85% of the profit target for 2024.

Medium- and long-term drivers for business operations

After a challenging 2023 for the dairy industry due to macroeconomic factors affecting purchasing power, positive signals gradually emerged in the first quarter of 2024. However, businesses still need to overcome short-term difficulties.

According to Ms Mai Kieu Lien at the AGM, with efforts to promote business in both the domestic and export markets, Vinamilk’s revenue and profit in the first quarter of 2024 grew positively, increasing profit by double digits.

Ms Mai Kieu Lien, Member of the Board of Directors, General Director of Vinamilk
Ms Mai Kieu Lien, Member of the Board of Directors, General Director of Vinamilk.
Mr Nguyen Hanh Phuc, Chairman of the Board of Directors of Vinamilk
Mr Nguyen Hanh Phuc, Chairman of the Board of Directors of Vinamilk.

In addition, the strategy of changing the brand identity along with a series of innovations in business, marketing, and products is expected to enhance Vinamilk’s position in the dairy industry. This was also a topic of interest to many shareholders at this year’s meeting.

Initial results show optimism as Vinamilk increased its liquid milk market share by nearly 3% after introducing new packaging for this product line. In addition, Vinamilk’s brand impression continues to be strong, with its brand value increasing to USD 3 billion according to Brand Finance and ranking in the Top 5 most sustainable dairy brands globally.

Speaking to the press in early 2024, Mr Nguyen Quang Tri, Vinamilk’s Marketing Director, said that following the series of vibrant activities in 2023, Vinamilk will introduce other products with new packaging, modern technology, and many other differences that promise to bring surprises to customers.

The “Taste Journey” of Vinamilk Green Farm products has made a strong impression on the public
The “Taste Journey” of Vinamilk Green Farm products has made a strong impression on the public.

To date, Vinamilk has more than 60 export markets, with net revenue from export activities in 2023 reaching over VND 5,000 billion, a growth of 4.4% compared to the previous year, opening up two new markets while maintaining good results in key markets. KB Securities (KBSV) forecasts that in 2024, consumer demand in Vinamilk’s major export markets will recover. In the first quarter of 2024, positive signals continued, with the company completing large orders such as 300 containers for the Middle East market.

Vinamilk’s durian-flavoured yoghurt began exporting and was sold in the Chinese market at the end of 2023
Vinamilk’s durian-flavoured yoghurt began exporting and was sold in the Chinese market at the end of 2023.

Regarding the beef farming project in cooperation with Japanese giant Sojitz, the Vinabeef beef farming and processing complex with a capacity of 10,000 tons of meat per year, started construction in the first quarter of 2023 and is expected to be operational in 2024. To date, the meat processing plant area has completed about 95% of the basic construction volume. Currently, the project’s products are being sold on a trial basis in some major supermarkets such as Aeon, Mega Market, Kingfood, Coop Mart, etc. This project is expected to bring new momentum to Vinamilk in the near future.

In addition, the ESG topic was also of interest to Vinamilk shareholders this year. Vinamilk’s pursuit of a systematic and serious sustainable development strategy not only strengthens the company’s position and the trust of investors, especially in the face of the growing ESG trend. In 2023, Vinamilk was highly appreciated when it announced its roadmap to Net Zero and at the same time had the first two units (factory and farm) in the dairy industry to achieve carbon neutrality according to the international standard PAS 2060:2014. Just before the 2024 AGM, the Vietnam Beverage Factory officially became the third Vinamilk unit to achieve this certification.

Vinamilk now has 3 units certified as Carbon Neutral PAS 2060:2014
Vinamilk now has 3 units certified as Carbon Neutral PAS 2060:2014.

In the stock market, Vinamilk’s VNM stock has been in the Top 20 stocks with the best sustainable development index (VNSI) for 7 consecutive years. The total ESG (Environmental - Social - Corporate Governance) score reached a high of 91%.

Vinamilk’s ESG score has always been highly rated
Vinamilk’s ESG score has always been highly rated.

Ngoc Thien

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