The Vietnam Dairy Products Joint Stock Company (Vinamilk) targeted a revenue of 55.5 trillion VND (2.46 billion USD) and a post-tax profit of 10.75 trillion VND (477 million USD) this year, up 8.5 percent and 4.6 percent, respectively. 


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During the annual shareholders’ meeting in Ho Chi Minh City on March 31, Vinamilk planned to pay dividends equivalent to at least half of its post-tax profit. The dividend for the first stage of 2018 will be paid in the third quarter this year at 2,000 VND per share while the second stage is slated for May – June 2019. 

Up to 35 percent of 2017 dividends have been paid while 15 percent will be paid on June 26, 2018 with June 6, 2018 as the last registration date. 

Earlier, Vinamilk announced that it posted a revenue of 51.135 trillion VND and a post-tax profit of 10.278 trillion VND. 

Vinamilk General Director Mai Kieu Lien said its market share has hit 58 percent, up 1 percent each year. Last year, it rose by 2 percent, nearly doubling the target. 

Sales of traditional products such as milk powder and fresh milk grew as planned while new products such as milk with less sugar, walnut soya milk and organic milk have also been put up on the market. 

Shareholders voted yes to a plan to issue additional one share to each one owning five shares, with a total less than 290.3 million shares. 

Vinamilk’s chartered capital is expected to increase by 2.903 trillion VND to 17.415 trillion VND. 

The meeting elected Alain Xavier Cany, chief representative and Chairman of Jardine Matheson Limited in Vietnam and Nguyen Chi Thanh, Deputy General Director of the State Capital Investment Corporation to the Board of Directors.

Vinamilk gained top spot in the list of 100 Best Places to Work in Vietnam for 2017 which was announced by Anphabe, a career network of management professionals, and market research firm INTAGE Vietnam. It was followed by Nestlé Vietnam, Viettel, Vietcombank, Coca-Cola Vietnam, and Samsung.

Jardine Mattheson takes seat on Vinamilk management board

Hong Kong-based Jardine Mattheson Group has secured one seat on the management board of Vinamilk, half a year after it bought a 10 per cent of the stakes at Vietnam’s leading dairy firm.

At the annual general meeting on March 31, Vietnam Dairy Products JSC (Vinamilk), elected its board for the 2017-2021 period. Two nominees, named Alain Xavier Cany and Nguyen Chi Thanh, were introduced to the eleven-member board.

Alain Xavier Cany, currently president of Jardine Mattheson Vietnam, also sits on the board of other companies, including Siam Cement City. Cany used to be president of HSBC Vietnam between 2003 and 2007.

Jardine Mattheson, via its Singapore-based subsidiary Jardine Cycle & Carriage, has spent $1.1 billion to snatch up Vinamilk’s shares last year. The first 3.3 per cent of the shares were bought during the November auction held by Vietnam’s State Capital Investment Corporation (SCIC). Jardine later purchased more shares on the public market to raise its ownership to 10 per cent.

Meanwhile, board member Nguyen Chi Thanh is a new representative from SCIC, which now holds 36 per cent of the shares following the November auction. SCIC previously said it would divest the entire stake at Vinamilk, but no concrete plan for further sales has been announced since.

Vinamilk’s CEO Mai Kieu Lien said she welcomed Jardine Mattheson, a conglomerate that has been in business around Asia for two centuries, on the board.

“Jardine has been with Vinamilk for only a short time so far, but the group has put forward many helpful suggestions. For example, Jardine has introduced a number of partners for us to boost our exports in various markets,” said Lien during the meeting.

Beside SCIC and Jardine Mattheson, Vinamilk has another major shareholder named Fraser & Neave, a subsidiary of Thai Beverage. F&N has been hoarding Vinamilk’s shares on the market last year to boost its ownership from 10.95 to 18.74 per cent. The firm currently has two representatives on Vinamilk’s board.

Lien admitted that although Vinamilk is still the number-one dairy producer in Vietnam, it still struggles in overseas markets. This is why the new board wants Vinamilk to focus on its exports in 2018, besides launching new offers in Vietnam, such as organic dairy products.

“We set the theme of 2018 as “Dare to Change,” as we need a new strategy to push Vinamilk forward,” said Lien.

Specifically, Vinamilk plans to reach VND55 trillion ($2.4 million) of revenue this year, an 8.5 per cent rise from 2017. After-tax profit is expected to increase by 4.6 per cent to reach VND10.75 trillion ($471 million). Similar to previous years, the dairy firm plans to pay the 2018 dividend in cash, at the payout ratio of 50 per cent.

To increase its charter capital, Vinamilk will also issue preferential shares to existing shareholders at the ratio of 5:1.


VNA