Despite difficulties due to Covid-19, Vinamilk still sets growth targets in 2020

Receiving high consensus from shareholders, the Congress was successful and reached important results such as:

Consolidated revenue and profit targets:

The company targets revenue for 2020 at VND 59,600 billion and profit after tax at VND 10,690 billion, corresponding to growth rates of 5.7% and 1.0% respectively compared to 2019.

In the context of the Vietnamese and world economies being affected by the Covid-19 pandemic, the Company still aims for positive growth by introducing quality products to consumers, expanding the distribution system and maintaining good service.

Vinamilk's 2020 General Meeting of Shareholders was held online. Photo: PV

Vinamilk's shareholders' meeting also approved the final dividend payment plan (phase 3) for the 2019 fiscal year of VND1,500/share. Thus, the total dividend payment amount for 2019 of VNM is VND7,836 billion, equivalent to VND4,500/share and the dividend rate is 74% of the company's after-tax profit. This dividend level demonstrates the Company's commitment to maintaining a high cash dividend policy.

Maintain the policy of cash dividend of at least 50% of consolidated profit after tax for the 2020 fiscal year, and approve interim dividend of VND 2,000/share for the first installment of 2020 (expected record date September 30, 2020) and VND 1,000/share for the second installment of 2020 (expected record date December 31, 2020).

At the same time, VNM will issue bonus shares to existing shareholders from undistributed profits at a ratio of 5:1. This will help increase liquidity for shares and help the Company increase its charter capital. The expected time to issue bonus shares is the 4th quarter of 2020.

To meet the development strategy in the new period, Vinamilk has registered new business lines, including:

Sugar production with plans to develop commercial sugar products with specialized functions such as sugar for diabetics, dieters...

Operating a chain of restaurants and mobile food and beverage services with the goal of bringing consumers a new experience through the project of opening a system of retail stores selling coffee, beverages and some accompanying foods under the brand name "Hi - Café"

Open retail distribution channels, by mail order or internet and retail other new goods in specialized stores because Vinamilk will implement the sale of plastic bags and reusable bags instead of giving them away for free as it is currently doing to increase consumer awareness when using single-use plastic bags.

Wholesale of metals and metal ores and Wholesale of agricultural and forestry raw materials (except wood, bamboo) and live animals because in the near future, Vinamilk is expected to directly sell raw materials to Vinamilk's subsidiaries to serve the production and business activities of these companies.

Vinamilk has just launched the bottled milk coffee product “Hi! Café” on the market along with a plan to develop a chain of coffee and beverage retail stores of the same name. Photo: PV

Vinamilk's shareholders' meeting unanimously elected a new member of the Board of Directors, Ms. Nguyen Thi Tham, SCIC representative, to replace Mr. Nguyen Chi Thanh - former SCIC representative - who resigned in April 2019.

In the 2020 Shareholders' Meeting, Vinamilk discussed with investors and shareholders about the estimated business performance results in the second quarter of 2020 and the accumulated results for the first 6 months of 2020. Regarding the parent company's data, estimated domestic and export revenue in the second quarter of 2020 increased by 12% and 26% respectively compared to the first quarter of 2020. Regarding consolidated data, estimated revenue and accumulated profit after tax in the first 6 months of 2020 increased by 7% and 3% respectively compared to the same period in 2019.

In the context of social distancing and international trade activities being interrupted due to Covid-19, Vinamilk still recorded many positive information about export activities, notably: Signing an export contract worth 20 million USD to the Middle East (February 2020); Completing the export of the first batch of condensed milk to China (April 2020); Exporting soy milk and milk tea to Korea with a contract worth 1.2 million USD (June 2020)... and continuing to maintain stable operations of member units and branches abroad in the context of the pandemic occurring worldwide.

Regarding community development activities, in 2019, the School Milk program implemented by Vinamilk was newly deployed in 10 provinces and cities, bringing the total number of provinces and cities that Vinamilk provided milk to in 2019 to 20. Since the beginning of 2020, Vinamilk has implemented the School Milk project in Quang Nam and Tra Vinh provinces and continues to develop new projects nationwide.

In addition, during the peak of the Covid-19 pandemic, Vinamilk also donated nearly VND30 billion to the Government and the community in the work of preventing and repelling the epidemic. Of which, Vinamilk donated 1.7 million glasses of milk equivalent to VND12.5 billion through the Vietnam Grow Up Milk Fund to disadvantaged children affected by Covid-19.