Vinamilk sets a target of VND12,000 billion in pre-tax profit in 2022

Closing the book in 2021 with a record of revenue

At the end of 2021, Vinamilk’s total consolidated revenue exceeded VND 60,000 billion for the first time. Consolidated revenue in the fourth quarter of 2021 grew by approximately 10%, the fastest quarterly growth in nearly 5 years. This revenue record is contributed from all 3 segments: domestic, export and foreign branches.

In the domestic market, the modern channel continues to be the main growth driver with double-digit growth. In addition to the distribution partners promoting the expansion of selling points, Vinamilk’s “Vietnamese Milk Dream” chain also opened 120 new stores in 2021, bringing the total number of stores at the end of the year to nearly 600. The online channel has recorded a 3-fold increase in revenue over the same period, partly due to this trend increasing during the pandemic and also from the foundation invested by Vinamilk for many years.

Vinamilk is currently a dynamic domestic dairy enterprise in the export segment. With 2 new export markets exploited during the year, the total number of accumulated export markets of this enterprise has increased to 57.

In 2021, net direct export revenue will reach VND 6,128 billion. Although the contribution to total revenue is still small, the growth rate is very remarkable when reaching 10.2% over the same period. Besides, Vinamilk has started exporting products to a joint venture in the Philippines from the end of the third quarter of 2021 with quite positive reviews from consumers.

The factor that helped Vinamilk maintain operations and grow in revenue during the year of the severe epidemic was the “terrible” system of farms and factories both at home and abroad. This creates a great strength for the enterprise’s supply chain, greatly contributing to maintaining and increasing market share when combined with a large retail system, covering all channels.

Expectations for growth and recovery in the period 2022-2026

According to the newly published Annual Report, in the period of 2022-2026, Vinamilk plans to expand its market share by 0.5% to 56%, revenue to 5% to reach VND64,070 billion, higher than the increase of 2 .2% in 2021, although the business picture is still difficult, the impact of consumer purchasing power due to inflation related to the global energy and supply chain crises is not likely to cool down anytime soon. in the first half of 2022. Profit before tax for the whole year is expected to reach VND 12,000 billion.

Further, Vinamilk expects to reach VND 86,200 billion in total revenue and VND 16,000 billion in pre-tax profit by 2026. Compound growth for the period 2021-2026 is 7.2% for revenue and 4.4 billion, respectively. % for profit. This target builds on the expectation that the consumer goods industry will recover quickly after 2022, when revenue and profit growth in the period 2022-2026 can accelerate to 7.7% and 7.5%/year. five.

Growth momentum comes from potential projects

2022 is also forecasted to be the year that many Vinamilk’s projects start strongly. Regarding dairy cows, the farm project in Laos that is expected to go into operation will continue to help Vinamilk maintain its strength as a company with a large dairy area (currently Vinamilk manages nearly 160,000 dairy cows). Combined with the project of a dairy factory in Hung Yen with a total investment of VND 4,600 billion and an estimated total design capacity of 400 million liters per year, the milk production capacity of this enterprise is at least 5 years. next year at a high level.

In addition to the dairy industry, a project on beef cattle in Vietnam with a total investment of 500 million USD, with phase 1 expected to go into operation in 2023 with a capacity of about 30,000 beef cows/year. According to the analysis of Vietcombank Securities, the expansion of other businesses such as beef will boost Vinamilk’s double-digit growth from 2023-2024 onwards. Vinamilk’s revenue from beef in the first year is expected to reach VND 2,000 billion when it comes into operation.

The Vibev joint venture between Vinamilk and Kido has launched the first product “Oh Fresh” including fresh green bean milk and fresh corn milk, seeking growth opportunities from new categories of fresh drinks with strong strengths. available. The joint venture in the Philippines also received positive reviews, when exploiting the potential from the second largest market in this region.

At the beginning of April, Vinamilk will publish the shareholders’ meeting documents on the company’s website, including the official business plan submitted to the general meeting for approval. It is expected that the congress will be held on April 26 in the form of online.