Tường An oil, a product of KIDO Group, on a supermarket shelf in HCM City. The company has reported a big jump in profits in the first half of this year. — Photo courtesy of KIDO Group Corporation

Food producer KIDO Group has reported a surge in profit in the year’s first half.

In its H1 results, it reported after-tax profits grew by 48 per cent year-on-year to VNĐ501 billion (US$21 million).

But net revenues declined by 31 per cent to VNĐ4.4 trillion ($186 million).

The company attributed the strong growth in profits to its financial restructuring, which included selling stakes in Calofic and KIDO Foods and buying bun brand Thọ Phát.

Besides, it focused on meeting market demand in terms of product mix, and increased the proportion of its distribution through modern retail networks like supermarkets, mini supermarkets and convenience stores and online channels.

During the rest of the year it plans to step up investment in R&D to introduce new products in all segments ranging from affordable to premium.

It will launch a promotion on ice-creams in the north.

For the upcoming mid-autumn season, KIDO said it had employed 600 workers to meet the market demand.

Its investment in Thọ Phát is expected to fetch revenues of around VNĐ2 trillion ($85 million) and profits of VNĐ200 billion ($8.5 million) this year, according to the company.

It continues to seek tie-ups with foreign partners to bring new products to the Vietnamese market.

It plans to expand its spice business.

The giant food producer, which has a history of 22 years, is the market leader in a number of confectionary segments and ice-creams. — VNS