Food producer KIDO Group on Tuesday announced a transformation to its business model following which it will directly sell its subsidiaries’ products in domestic and foreign markets.

It made the announcement at its annual general meeting in HCM City on Tuesday.

Under the proposed transformation, the subsidiaries will make products like cooking oil, ice-cream, coffee, and others and sell all of them to KIDO.

The company also announced plans to further expand production of chilled and dried foods.

New products would be also be researched and developed, and the distribution networks would be expanded both in the domestic and foreign markets, it said.

The transformation is based on the expectation that the global economy will recover in 2021 but continue to face the COVID-19 threat.

With it, KIDO targets net revenues of VND11.5 trillion (US$496 million)and pre-tax profits of VND800 billion ($34.6 million) this year, up 38.2 per cent and 92 per cent from 2020.

It announced it would pay a dividend of 6 per cent for 2021.

It plans to step up co-operation with foreign and domestic partners to diversify snacking as well as food and beverage products.

They include a deal with Vinamilk to develop the Vibev beverage brand which will come into the market in the third quarter of this year.

This month KIDO launched Chuk Chuk, a chain selling coffee and tea, other beverages and cakes.

In 2020 KIDO’s revenues topped VND8.3 trillion ($358 million), presenting 101.1 per cent of annual plan and jumping by 15.4 per cent year-on-year.

Profit after tax was over VND330 billion ($14.2 million), a nearly 60 per cent rise. — VNS