Vinamilk recorded many outstanding information with new brand identity, important announcement about Net Zero and recently the financial report for the second quarter of 2023 with growth in both revenue and profit.

Key distribution channels grow to drive revenue

Vietnam Dairy Products Joint Stock Company (Vinamilk) announced its financial report for the second quarter of 2023 with total consolidated revenue reaching VND 15,213 billion, up 1.7%, consolidating the target of completing the 5.5% growth plan for the whole year. According to the market, domestic net revenue reached VND 12,789 billion, up slightly by 2.5% over the same period.

Growth momentum came from key product lines such as condensed milk, 100% fresh milk, plant-based milk and yogurt thanks to efforts to optimize the distribution system and introduce new packaging to suit consumer needs. Key distribution channels all recorded positive growth in the second quarter of 2023 compared to the same period last year.

The highlight is the store and e-commerce channels with a high growth rate of 16% thanks to the shift in consumer shopping habits and Vinamilk's systematic investment in online sales platforms. As of June 30, the company is operating 654 Vietnamese Milk Dream stores, an increase of 8 stores compared to the beginning of the year.

Vinamilk's Vietnamese Milk Dream store channel and e-commerce grew by double digits in the second quarter of 2023.

Along with developing distribution channels, Vinamilk has carried out many marketing activities to increase marketing effectiveness such as the "Happy Cow - Delicious Milk" festival, the "Childhood Museum" communication campaign of Ông Thọ condensed milk and "Pure natural taste" of GreenFarm fresh milk. Foreign markets recorded revenue of VND 2,406 billion.

Regarding export activities, although the general situation is still considered difficult in the first 6 months of the year, Vinamilk continues to maintain its presence in traditional markets while actively increasing distribution channel coverage, brand recognition, product research and development... in new export markets.

For foreign branches, AngkorMilk in Cambodia still maintains growth of over 10%. In the following quarters, foreign branches will increase marketing activities and invest in sales systems.

Since the beginning of the year, Vinamilk has participated in more than 9 major fairs and exhibitions in markets such as China, Dubai, Korea, etc.

Profits return to growth

Consolidated gross profit margin (“GPM”) in the second quarter of 2023 reached 40.5%, up 170 basis points from the previous quarter and equivalent to the same period in 2022. Consolidated selling and administrative expenses in the second quarter of 2023 were VND 3,630 billion, equivalent to 23.9% of net revenue. This expense was approximately equal to the same period in 2022, while revenue grew, showing investment efficiency in sales and other activities.

Consolidated financial revenue in the second quarter of 2023 reached VND 384 billion, an increase of VND 42 billion over the same period last year. The fluctuations in financial income mainly came from higher interest on deposits and interest expenses compared to the same period last year. Thus, consolidated profit after tax reached VND 2,229 billion, an increase of 6% over the same period in 2022 and increased faster than revenue growth thanks to significantly improved gross profit margin and effectively managed costs. Accordingly, consolidated profit after tax margin reached 14.7%, an increase of 100 basis points over the previous quarter and an increase of 60 basis points over the same period in 2022.

Accumulated for the first 6 months, total revenue and consolidated profit after tax reached VND 29,167 billion and VND 4,135 billion, respectively, completing 46% and 48% of the yearly plan. As of June 30, liquidity ratios for the first half of the year all improved, in which the current and quick payment ratios reached 2.4 times and 2.0 times, respectively (2.0 times and 1.7 times at the end of 2022).

Changing Brand Identity - The First Step in a Comprehensive Transformation Strategy

Last July, Vinamilk changed its brand identity to suit the new development stage. The new brand represents the personality of “bold, determined, always being yourself” with the message Vinamilk sends to consumers being “We change for you!”. The new identity was built by the company in cooperation with a team of more than 55 leading domestic and foreign experts.

Vinamilk's new brand identity made a strong impression on media and social networks... as soon as it was launched.

Ms. Mai Kieu Lien - General Director of Vinamilk added that changing the brand identity is an effort to reposition, marking the first step in the process of modernizing the user experience and creating momentum for future breakthroughs, thereby increasing brand value, connecting better with young customers and creating a new perception of a Vinamilk with international quality and value for Vietnamese people.

After launching the new brand identity, Vinamilk will make a series of changes in digital transformation, personnel recruitment, management processes, etc. with the goal of reaching consumers faster and more effectively.

In the second quarter, Vinamilk also announced a highlight in its sustainable development strategy when it opened the first carbon-neutral dairy factory and dairy farm in Vietnam, and announced a roadmap to achieve Net Zero by 2050. This is also a strategic spearhead that the company's leadership has determined to promote in the coming time and will create many major changes in production and business towards sustainability.

PV