- 2024-04-25T00:00:00
- Company Research
- Q1 2024 preliminary results: In Q1 2024, VNM’s revenue experienced 1.2% YoY growth, while its PBT and NPAT grew 17% YoY and 16% YoY, respectively. Its sell-out sales grew 5% YoY in Q1 2024 and its export revenue advanced 14% YoY in 4M 2024. This performance is encouraging for VNM amid a 2.8%-YoY decline in the growth of Vietnam’s milk market value, according to management. On the other hand, VNM’s infant formula milk (IFM) sales remain weak amid the 20% YoY drop in Vietnam’s IFM market value growth, according to management. Management believes Vietnamese’s consumption in Q1 remained stagnant.
- Rebranding & digital transformation: In 2024, VNM’s management plans to conduct (1) rebranding for its yogurt segment in Q2 and (2) reposition for its IFM in Q3. VNM expects these actions will help improve its profitability over the short to medium term. Additionally, the company is undertaking digital transformation initiatives to improve operational efficiency, with a particular emphasis on leveraging technologies in farming, production, and cost management. Management plans capex of VND4.2tn and VND6.0tn for 2024 and 2025, respectively. The capex will be invested in activities to increase revenue and reclaim market share.
- Additional details:
- Management anticipates construction of the Hung Yen Dairy Factory — which is a joint venture between VNM and VLC (Vilico) — to commence in June-July 2024.
- Management expects that Vinabeef – which is a joint venture between VNM and Japanese firm Sojitz – will start operations in Q4 2024 and has the potential to generate revenue of VND3.0tn (USD120mn) annually.
- VNM is dedicated to achieving a net-zero emissions target by 2050 and is exploring options to minimize or replace plastic packaging with paper alternatives.
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