Vinamilk’s 1Q profit almost unchanged at $118.4 million despite pandemic

Vinamilk products are displayed for sale at a Fivimart supermarket in Hanoi, Vietnam, October 7, 2016. REUTERS/Kham
1Q net revenue was reported at VND14.1 trillion ($603 million), up 7.3% over the same period of last year. Revenue from the domestic market was at VND12 trillion ($511.4 million) while revenue from the foreign market was at VND2.1 trillion ($89.5 million), up 4,2%.
The revenue growth was partly contributed by GTNFoods, which Vinamilk (HoSE: VNM) holds 75% stakes from first this year.
Vinamilk’s subsidiary recorded net revenue of VND633 billion and contributed significantly to the growth of the group.
The coronavirus outbreak had negative impacts on sale activities of the group when all of schools, restaurants, coffee shops had to close business from January.
However, the company stays resilient thanks to online sales channels and its stores. Demand for dairy products increased as people look for better-supplementing nutrition in the context of the pandemic.
Currently, Vinamilk has more than 150,000 cows, with the total raw milk output at nearly 1,200 tons a day.
The company sets a 2020 revenue target of VND62 trillion and VND12.4 trillion in pre-tax profit. In addition to consolidating the leading position in the domestic dairy industry, Vinamilk is looking for M&A opportunities with foreign partners.
By the end of the first quarter of 2020, its total assets stood at over VND46 trillion ($1.96 billion), up 3% compared to the beginning of the year.
► Vinamilk gets license to export sweetened condensed milk to China
► Vinamilk reports 2019 after-tax profit of nearly $448 million, completing yearly target