Vinamilk profits continue to fall

In this article (4)
Vinamilk reported a 26-percent year-on-year fall in second-quarter profits to VND2.1 trillion (US$89.97 million), and blamed it on inflation driving demand down and costs up.
The dairy giant’s revenues fell by 5 percent to VND14.93 trillion.
In the first five months sales of fast moving consumer goods fell by 2 percent, according to data from market research firm Nielsen.
Vinamilk also struggled to maintain its dominance in the domestic market and saw exports drop by 12 percent due to lower global demand and higher transport costs.
However, its profit margin rose by 0.2 percentage points from Q1, the first increase since 2020.
Besides, its U.S. and Cambodian subsidiaries, Driftwood and Angkormilk, reported sales growth of 40 and 20 percent.
This year it expects profits to decline by 7 percent, a second straight year of falling profits, due to rising costs of raw materials and transportation.
But securities brokerages said lower milk powder prices would increase the profit margins for the dairy industry this year, including for Vinamilk.
SSI Securities expects the company’s net profits to rise by 11 percent, while VnDirect Securities forecast a 7.5-percent increase.
Questions & Answers
Q.What is Vinamilk's forecast for its full-year profits this year?
What is Vinamilk's forecast for its full-year profits this year?
Vinamilk expects its profits to decline by 7 percent this year. This would mark a second consecutive year of falling profits for the company, largely due to rising raw material and transportation costs.
Q.Which of Vinamilk's subsidiaries showed sales growth in the second quarter?
Which of Vinamilk's subsidiaries showed sales growth in the second quarter?
Vinamilk's U.S. Subsidiary, Driftwood, reported a sales growth of 40 percent. Its Cambodian subsidiary, Angkormilk, also saw sales grow by 20 percent during the period covered.
Q.What do securities brokerages predict for Vinamilk's net profits this year?
What do securities brokerages predict for Vinamilk's net profits this year?
Securities brokerages anticipate an increase in Vinamilk's net profits for the year. SSI Securities projects an 11 percent rise, while VnDirect Securities forecasts a 7.5 percent increase, driven by lower milk powder prices.
Reader pulse
Is Vinamilk's profit recovery likely this year?
18,765 votes so far