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Food and beverage firm posts highest cash dividend payout rate

Update: August, 13/2019 - 08:55


Vinacafe Biên Hòa coffee products being packaged for sale. - Photo

HÀ NỘI — Coffee maker Vinacafe Biên Hòa maintains its top position on the Vietnamese stock market in terms of cash dividend payout rate.

Vinacafe Biên Hòa (HoSE: VCF) plans to pay a 240 per cent dividend in cash for 2018, meaning every shareholder will receive VNĐ24,000 (US$1.03) for each share they own.

In 2018, the company earned VNĐ3.43 trillion ($147.5 million) in revenue and VNĐ637 billion in post-tax profit, up 6 per cent and 72.5 per cent respectively from the previous year.

With nearly 26.58 million shares listed on the Ho Chi Minh Stock Exchange (HoSE), the company will have to pay nearly VNĐ638 billion in the upcoming dividend payout.

Vinacafe Biên Hòa will finalise the list of beneficial shareholders on August 19 and the payments will be made on August 30.

In 2018, the company made a 660 per cent dividend payout for its 2017 results – the highest dividend payout rate in the history of the Vietnamese stock market.

The firm’s 2017 payment was worth VNĐ1.75 trillion. The historical dividend payment was widely considered a bonus for shareholders after the company was acquired by Masan Beverage for more than VNĐ1.7 trillion.

Masan Beverage, a member unit of Masan Group, holds nearly 98.5 per cent of the southern coffee making firm.

Shares of Vinacafe Biên Hòa have soared 22 per cent since July 31 to end Monday at VNĐ212,100 per share.

The company is one of the top three coffee firms in Việt Nam. In 2018, the value of the coffee retail market was nearly VNĐ8.5 trillion, up 6 per cent year on year.

Consumer staple firms, especially food and beverage producers, maintained good earnings growth in the second quarter of 2019, VNĐirect Securities Corp said in its Q2 earnings report on August 7.

Those companies will record good results in upcoming quarters because domestic consumption is forecast to keep growing, the brokerage firm said.

Recently, the online services provider FPT Online (UPCoM: FOC) announced it would make the first advance dividend payment for 2019 in cash.

The payout rate is set at 100 per cent. Every shareholder will receive VNĐ10,000 for each share they have.

The company in January and May paid a total of VNĐ192.23 billion for its 2018 dividend payouts. The payout rate was set at 130 per cent and cash was disbursed in two payments.

FPT Online debuted on the Unlisted Public Company Market (UPCoM) on December 10, 2018. Its shares ended 1.7 per cent at VNĐ137,000 per share on Monday.

In 2018, FPT Online posted a 3.4 per cent increase in total revenue and a 0.44 per cent rise in total pre-tax profit compared to the previous year. The figures stood at VNĐ537.8 billion and VNĐ315.2 billion, respectively.

On Thursday, Industrial realty developer Nam Tân Uyên (UPCoM: NTC) will pay the remaining 100 per cent cash dividend for 2018. Its first 100 per cent cash dividend payout for 2018 was made in late January 2019.

The total value of the dividend payment is VNĐ320 billion.

In 2018, the company’s full-year revenue jumped 3.6 times to VNĐ532 billion and its post-tax profit soared 3.3 times to VNĐ469 billion from 2017.

Nam Tân Uyên shares have skyrocketed by 92 per cent since May 6 to hit VNĐ187,000 per share.

According to MB Securities Co, rising trade tensions between the US and China have forced foreign investment and capital to move from China to other regional markets, including Việt Nam.

The low cost of labour and land are key factors making Việt Nam’s industrial parks attractive to foreign investors, MBS said in a report in June.

In addition, free trade agreements signed between Việt Nam and its trade partners will foster the growth of the industrial real estate sector in the near future, MBS said. — VNS

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