Food and beverage firm posts highest cash dividend payout rate

Tuesday, Aug 13, 2019 08:00

Vinacafe Bien Hoa coffee products being packaged for sale. — Photo

Coffee maker Vinacafe Bien Hoa maintains its top position on the Vietnamese stock market in terms of cash dividend payout rate.

Vinacafe Bien Hoa (HoSE: VCF) plans to pay a 240 per cent dividend in cash for 2018, meaning every shareholder will receive VND24,000 (US$1.03) for each share they own.

In 2018, the company earned VND3.43 trillion ($147.5 million) in revenue and VND637 billion in post-tax profit, up 6 per cent and 72.5 per cent respectively from the previous year.

With nearly 26.58 million shares listed on the Ho Chi Minh Stock Exchange (HoSE), the company will have to pay nearly VND638 billion in the upcoming dividend payout.

Vinacafe Bien Hoa will finalise the list of beneficial shareholders on August 19 and the payments will be made on August 30.

In 2018, the company made a 660 per cent dividend payout for its 2017 results – the highest dividend payout rate in the history of the Vietnamese stock market.

The firm’s 2017 payment was worth VND1.75 trillion. The historical dividend payment was widely considered a bonus for shareholders after the company was acquired by Masan Beverage for more than VND1.7 trillion.

Masan Beverage, a member unit of Masan Group, holds nearly 98.5 per cent of the southern coffee making firm.

Shares of Vinacafe Bien Hoa have soared 22 per cent since July 31 to end Monday at VND212,100 per share.

The company is one of the top three coffee firms in Viet Nam. In 2018, the value of the coffee retail market was nearly VND8.5 trillion, up 6 per cent year on year.

Consumer staple firms, especially food and beverage producers, maintained good earnings growth in the second quarter of 2019, VNDirect Securities Corp said in its Q2 earnings report on August 7.

Those companies will record good results in upcoming quarters because domestic consumption is forecast to keep growing, the brokerage firm said.

Recently, the online services provider FPT Online (UPCoM: FOC) announced it would make the first advance dividend payment for 2019 in cash.

The payout rate is set at 100 per cent. Every shareholder will receive VND10,000 for each share they have.

The company in January and May paid a total of VND192.23 billion for its 2018 dividend payouts. The payout rate was set at 130 per cent and cash was disbursed in two payments.

FPT Online debuted on the Unlisted Public Company Market (UPCoM) on December 10, 2018. Its shares ended 1.7 per cent at VND137,000 per share on Monday.

In 2018, FPT Online posted a 3.4 per cent increase in total revenue and a 0.44 per cent rise in total pre-tax profit compared to the previous year. The figures stood at VND537.8 billion and VND315.2 billion, respectively.

On Thursday, Industrial realty developer Nam Tan Uyen (UPCoM: NTC) will pay the remaining 100 per cent cash dividend for 2018. Its first 100 per cent cash dividend payout for 2018 was made in late January 2019.

The total value of the dividend payment is VND320 billion.

In 2018, the company’s full-year revenue jumped 3.6 times to VND532 billion and its post-tax profit soared 3.3 times to VND469 billion from 2017.

Nam Tan Uyen shares have skyrocketed by 92 per cent since May 6 to hit VND187,000 per share.

According to MB Securities Co, rising trade tensions between the US and China have forced foreign investment and capital to move from China to other regional markets, including Viet Nam.

The low cost of labour and land are key factors making Viet Nam’s industrial parks attractive to foreign investors, MBS said in a report in June.

In addition, free trade agreements signed between Viet Nam and its trade partners will foster the growth of the industrial real estate sector in the near future, MBS said. — VNS

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