Vinamilk products being processed. The country’s largest dairy company has reported an increase in revenue in the third quarter, but its profits have fallen due to rising costs. — Photo baodautu.vn
The Vietnam Dairy Products Joint Stock Company (Vinamilk) has reported its Q3 combined revenue rose 3.3 per cent year-on-year to VND13.73 trillion (US$610.2 million).
However, pre-tax profit was down 5.9 per cent to more than VND3 trillion as costs increased by 14 per cent year-on-year to VND3.4 trillion.
In the first nine months, Vinamilk recorded more than VND39.5 trillion in revenue, up 2 per cent compared to the same period last year.
The main revenue source for the company was the domestic market, where sales reached VND33.9 trillion. Sale revenue from overseas markets was VND5.7 trillion, about the same as last year’s figure.
However, revenue growth could not offset rising production costs, so combined profit fell slightly to VND18.4 trillion in the first nine months of 2018 from last year’s VND18.6 trillion.
Costs in the first three quarters rose 6.8 per to VND8.9 trillion, resulting in nine-month pre-tax profit of VND9.37 trillion, down by VND800 billion from last year.
Poor quarterly earnings have pulled the share price of Vinamilk, listed on the Ho Chi Minh Stock Exchange as VNM, down since early this month.
Shares have lost 15.2 per cent in value since October 4 to end Wednesday at VND116,100 ($5.16). — VNS