Vinamilk, listed on the Ho Chi Minh Stock Exchange under the ticker VNM, is a leading dairy company in Vietnam. Founded in 1976, it has grown into a dominant player in the domestic market, producing a wide range of dairy products including milk, yogurt, cheese, ice cream, and condensed milk.
Despite a dairy market share of over 40 percent, Vinamilk’s revenue growth has decelerated in recent years due to increased competition. Vinamilk’s revenue and profit dropped nearly 20 percent in 2022 compared to 2021. As a result, the stock price fell by 40 percent between January 2021 and September 2022.
In response to these challenges, VNM has actively sought new growth strategies, such as rebranding, launching new products, and expanding into new export markets. These efforts resulted in a better performance in the fourth quarter of 2023, with net profit up 25.8 percent year-over-year.
In the first half of 2024, Vinamilk recorded revenue and profit increases of 5.6 percent and 18.6 percent, compared to last year, respectively. Of which, net export revenue reached US$121 million, up 21.7 percent. Vinamilk’s main export markets include the Middle East, Japan, and China.
In the second half of the year, domestic consumption is projected to bounce partly thanks to a nationwide increase in the salaries of government employees, providing a strong stimulus for Vinamilk to grow. Additionally, Vinamilk is actively pursuing new opportunities by expanding its presence in global supply chains, focusing on emerging markets and leveraging free trade agreements.
Disclosure: The author does not have any financial interest in VNM stock.