The Vietnam Dairy Products JSC – Vinamilk (VNM), the largest dairy company in Vietnam, posted a gain in revenue and profit in the fourth quarter of last year and the whole of 2020 despite disruptions due to COVID-19.

A worker checks Vinamilk's products at its laboratory. Vinamilk's revenue
and profit all increased last year (Photo courtesy of Vinamilk)

Vinamilk’s fourth quarter financial report showed an increase of 1.3% year-on-year in net revenue to VND14.4 trillion. In 2020, its consolidated net revenue rose nearly 6% against 2019 to VND59.6 trillion.

Of which, the company’s net revenue from domestic sales was at VND50.8 trillion, up 6.9% year-on-year, while net revenue from international sales slightly increased by 0.35% to nearly VND8.8 trillion.

Last year, Vinamilk’s foreign trade posted good performance as it expanded businesses to new markets like the Republic of Korea, China and Singapore, regardless of uncertainties due to the pandemic.

In April, the company official exported the first batch of condensed milk to China, less than two months after being given the green light to export to the world’s biggest market.

Vinamilk's products were first introduced to Chinese consumers in October last year. And it has been cooperating closely with its Chinese counterparts to export a wide variety of products from milk to other drinks.

It was also allowed to sell products to the Eurasian Economic Union, including Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan.

In the fourth quarter, the dairy producer’s also spent more in sales and management activities. The cost was up 7.9% toVND4.5 trillion and it climbed nearly 7.1% to VND15.4 trillion in 2020.

Its profit after tax gained 2.7% year-on-year to VND2.2 trillion in the fourth quarter of last year, and increased by 6.5% to VND11.2 trillion in 2020. Its profit after tax margin was at 15.5%.

In 2020, the company also completed a merger and acquisition deal with GTNFoods JSC (GTN). Vinamilk bought over VND3.4 trillion of GTN shares at the end of 2019.

Vinamilk was the first and only Vietnamese enterprise recognised as “ASEAN ASSET CLASS” last year and led Vietnam's Top 3 Listed Companies according to the 2019 ASEAN Corporate Governance Scorecard results, part of the ASEAN Capital Market Forum (ACMF)'s ASEAN Corporate Governance Initiative.

VNM’s shares traded at VND106,400 on February 2, up 3.6%, on the Ho Chi Minh Stock Exchange.