|Vinamilk’s products at an exhibition in Moscow, Russia. The company is expected to grow exports by 8 per cent in 2018. – Photo vnmedia.vn|
HÀ NỘI – Việt
Dairy products recorded negative growth for the last three quarters: 3.3 per cent in the fourth quarter of 2017, 7 per cent in Q1 2018 and 5.3 per cent in Q2 2018, according to the Quarterly Market Pulse report on fast-moving consumer goods (FMCG) released by Nielsen Vietnam in August.
Such declines have partly reflected the change in consumption trends of Vietnamese people, who have become more concerned about their health and what they consume, switching to high-nutrient and healthier beverages with more stringent quality requirements.
Vinamilk and other dairy firms are struggling to reach their business targets.
In its second-quarter financial statements, Vinamilk reported net revenue of VNĐ13.7 trillion (US$588 million), up 2.6 per cent on-year, but its after-tax profit declined 8.2 per cent to VNĐ2.68 trillion.
As of the end of June, Vinamilk’s revenue increased 1.7 per cent but profit declined 8.3 per cent, far behind its yearly target of 8.5 per cent for total revenue gains and 4.6 per cent for net profit.
“The company is seeking opportunities for investing in foreign markets via either joint ventures or M&A agreements,” the company’s management board told its 2018 shareholders’ meeting on March 31.
Vinamilk has been actively expanding its reach to new markets through a mergers and acquisitions (M&A) strategy in recent years.
It paid millions of US dollars to establish a joint venture with Angkor Dairy Products in
After two years of investment, Driftwood Dairy contributed 6.5 per cent to Vinamilk’s total revenues, while the project in
According to BIDV Securities JSC, expanding overseas markets to increase export turnover is one of the three main growth drivers for Vinamilk by 2020. At present, the company is focusing on the
It is seeking opportunities to buy some local companies in
At the same time, per capita milk consumption in these two countries is very low compared to other countries in the region, only around 10-11 litres per person per year, compared to 22 litres in the Philippines and 45 litres in Singapore.
Vinamilk signed a memorandum of understanding with a Chinese partner in May this year, facilitating its exports to
“Vinamilk is highly interested in the
It said it is working with F&N to study the markets and find suppliers at these markets. It also revealed that in the upcoming time, a group of Chinese authorities will come to Việt
The company is expected to increase exports by 8 per cent in 2018. – VNS