KIDO announces business strategies for 2019

Monday, Jun 17, 2019 11:12

KDC executives answer questions from shareholders at the annual general meeting in HCM City on Friday. — VNS Photo Thu Ngan

Food producer KIDO Group has unveiled its business plans for 2019 with a focus on four main strategies.

At the annual general meeting in HCM City on Friday, the company's vice president Nguyen Thi Xuan Lieu said they include developing core products; continuing to develop premium products; launching new products; and strengthening management and operations.

These strategies would apply to both the canned and chilled food segments, she said.

KDC is seeking to identify merger and acquisition opportunities and tie up with original equipment manufacturers.

It will support member companies like Vocarimex and Tuongng An Vegetable Oil Company cope with difficulties caused by raw material price volatility.

It targets revenues of VND8.3 trillion (US$362 million) this year, 9.1 per cent up from last year, and profits of VND300 billion ($13.1 million).

It expects to pay a 12 per cent dividend for 2019.

KDC said 2019 would be a tough year due to the trade dispute between China and the US, which is roiling financial markets.

Furthermore, the fast-moving consumer goods market has been slowing down.

The increase in electricity tariffs is expected to affect the company, especially its chilled food segment.

But KDC remained confident of achieving the goals saying there is much room for growth in the cooking oil and ice cream segments.

It is also banking on the country's rapid economic growth and trade agreements to increase opportunities.

Lieu said the company had a tough 2018 when cooking oil prices kept falling.

Its revenues rose 8.4 per cent to VND7.61 trillion ($334 million) while profit before tax was at VND177 billion ($7.76 million).

KIDO used to be a confectionery producer until two years ago. — VNS

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