Vinamilk plans higher revenue, looks to build cow farms in the Philippines

April 27, 2023 - 09:26
Dairy firm Vinamilk (VNM) is co-operting with a partner in the Philippines and will export products to this country. When the market is large enough, VNM plans to build factories and cow farms in the Philippines.


Vinamilk's 2023 Annual General Meeting of Shareholders was held Tuesday. Photo

HÀ NỘI Dairy firm Vinamilk (VNM) plans total revenue in 2023 reaching VNĐ63.38 trillion (US$2.7 million), up 5.5 per cent compared to 2022.

Target profit before tax and profit after tax are forecast at VNĐ10.5 trillion and VNĐ8.62 trillion, respectively, almost unchanged compared to 2022.

Regarding the dividend plan, Vinamilk plans to pay dividends in 2023 with the minimum rate of 50 per cent in cash, equivalent to an amount of VNĐ10.4 trillion.

This information was given at the company's 2023 Annual General Meeting of Shareholders, which was held Tuesday.

In particular, 2023 also marks the successful 20-year equitisation milestone of this enterprise. This year, revenue is expected to increase 15 times, profit up 13 times compared to the time of official equitisation in 2003.

With a total contribution to the State budget since 2003 of nearly VNĐ55.3 trillion, Vinamilk has always been in the group of enterprises paying the highest cash dividends to shareholders, with accumulated dividend payment amount so far of VNĐ76.23 trillion.

Vinamilk has raised the brand value to US$2.8 billion last year, an increase of 18 per cent over 2021, becoming the 6th largest dairy brand in the world (according to Brand Finance) and maintained its position in the Top 40 largest dairy enterprises globally in terms of revenue (according to Plimsoll).

In 2022, the total consolidated revenue reached VNĐ60.08 trillion; profit after tax reached VNĐ8.6 trillion. In which, net revenue from domestic, export and foreign branches reached VNĐ50.7 trillion, VNĐ4.8 trillion and VNĐ4.4 trillion, respectively. The company maintains a high level of cash dividend for shareholders in 2022, with total amount  VNĐ8.05 trillion, accounting for 94 per cent of consolidated profit after tax.

Vinamilk is cooperating with a partner in the Philippines and will export products to this country. When the market is large enough, VNM plans to build factories and cow farms in the Philippines.

In the discussion, VNM's leadership shared about the situation of the projects of this enterprise.

Regarding the dairy plant project in Hưng Yên, Mai Kiều Liên, General Director of VNM, said that the land procedure was very complicated. After completing the procedures, VNM will start construction and put the factory into operation in 2025.

Regarding cow farms in Laos, VNM said that the farm had been put into operation and had about 1,000 cows. It is expected that in 2023, the enterprise will add 7,000 cows, bringing the total number to 8,000 and able to achieve 100 tonnes of fresh milk per day if running at full capacity, similar to Green Farm in Tây Ninh.

For the beef project in Tam Đảo district in Vĩnh Phúc Province, VNM co-operates with a Japanese partner, Sojitz Corporation. In the past 2 years, the business has experimented with diets and breeding methods. After the first 20 trial batches, the results were positive. Accordingly, the quality of meat was welcomed by consumers, guaranteed according to Japanese standards and the project had a good profit margin. Liên said that although it was not a big project, this livestock complex took advantage of the available strength of VNM. VNS