KIDO Group reported a gross profit of VNĐ317 billion in the first quarter of 2019. — VNS Photo Courtesy KIDO Group

Food producer KIDO Group said its frozen business has helped increase profits by 21 per cent in the first quarter of this year to VNĐ317 billion (US$13.9 million).

The company said there was a “sharp increase of 23 per cent in revenues from the frozen business which yields higher gross profit margins”.

KIDO reported revenues in the period of over VNĐ1.55 trillion ($67.9 million) a 7 per cent year-on-year decline due to a fall in edible oil sales in the mass and bulk oil segments due to rising competition and decreasing prices.

Furthermore, selling expenses increased by 27 per cent mainly because of increased incentives for frozen products distributors meeting sales targets.

Golden Hope Nhà Bè Oil Company Limited (GHNB), which KIDO acquired, contributed VNĐ7 billion to the consolidated profit before tax.

Tường An Vegetable Oil Joint Stock Company achieved revenues of VNĐ840 billion ($36.8 million), down 22 per cent from the same period in 2018 due to a change in product mix.

It has switched its focus to premium products and reduced the contributions from the mass and bulk edible oil segments (with low margins) since competition in these segments has increased.    

KIDO Food reported revenues of VNĐ266 billion ($11.6 million), a 23 per cent increase compared to the same period in 2018 driven by growth in the ice cream segment (increased by 37.4 per cent) which offset a fall in revenues in the yoghurt segment due to fierce competition.

TAC plans to continue to diversify its product portfolio, focusing on segments with a high profit margin.

Vocarimex reported revenues of VNĐ626 billion ($27.4 million) in, a 43 per cent decline due to the strong competition and falling edible oil prices. – VNS