Customers buy cakes at a Kinh Do store in Ha Noi. — VNA/VNS Photo Tran Viet

HA NOI  (Biz Hub) — Confectionery Kinh Do Corporation (KDC) still wants to buy back another 55.5 million shares to complete its plan of re-acquiring almost 77 million shares in the company.

This was revealed in a KDC document sent to shareholders on Thursday ahead of its annual shareholders' meeting.

In December, 2014, KDC approved a buy-back of 77 million shares, equivalent to 30 per cent of its total issued shares. So far, it has purchased nearly 21.5 million shares.

The company plans to buy another 55.5 million shares. The offering price will not exceed VND50,000 (US$2.29) a share.

KDC's shares have risen again for the past month, closing yesterday at VND43,800 ($2) a share on the HCM City Stock Exchange.

The purchase would be funded from the company's capital surplus (VND3.274 trillion, or $150.2 million), undistributed profits (VND1.084 trillion, or $49.7 million), development fund and other funds under its equity capital (VND41.28 billion, or $1.9 million).

The confectionery reported total net sales of almost VND5 trillion ($229.4 million) by the end of 2014 and the pre-tax profit of VND600 billion ($27.5 million). Its net profit reached VND537 billion ($24.6 million).

The 2014 dividend rate was 10 per cent and the payout was made on May 20. Ending 2014, its total assets reached VND7.875 trillion ($361.2 million).

This year, KDC has targeted lower revenues of just VND3 trillion ($137.6 million) but its pre-tax profit is set at VND6.5 trillion ($298.2 million). This figure includes the profit from the sale of 80 per cent of stakes in its snack business Binh Duong Kinh Do Corp to US-based confectionery giant Mondelez International Corp.

The plan for 2015 dividends is set at 14 per cent in cash.

Earlier this year, the company agreed to pay special cash dividends to shareholders with an impressive rate of 200 per cent after the sale of stakes in the snack business to Mondelez was completed. — VNS