Launching new brand identity, Vinamilk reports growth in revenue and profit in Q2/2023
(Baonghean.vn) - Vinamilk recorded many outstanding information with new brand identity, important announcement about Net Zero and recently the financial report for the second quarter of 2023 with growth in both revenue and profit.
Key distribution channels grow to boost revenue in Q2/2023
Vietnam Dairy Products Joint Stock Company (Vinamilk) announced its financial report for the second quarter of 2023 with total consolidated revenue reaching VND 15,213 billion, up 1.7%, consolidating the goal of completing the 5.5% growth plan for the whole year.
According to the market, domestic net revenue reached VND12,789 billion, a slight increase of 2.5% over the same period. The growth momentum came from key product lines such as Condensed Milk, 100% Fresh Milk, Plant-based Milk and Yogurt thanks to efforts to optimize the distribution system and introduce new packaging to suit consumer needs.
All major distribution channels recorded positive growth in the second quarter of 2023 compared to the same period last year. The highlight was the store and e-commerce channels with a high growth rate of 16% thanks to the shift in consumer shopping habits and Vinamilk's systematic investment in online sales platforms. As of June 30, the Company was operating 654 Vietnamese Milk Dream stores, an increase of 8 stores compared to the beginning of the year.
Along with developing distribution channels, Vinamilk has carried out many marketing activities to increase marketing effectiveness such as the "Happy Cow - Delicious Milk" festival, the "Childhood Museum" communication campaign of Ông Thọ condensed milk and "Pure delicious taste from nature" of Green Farm fresh milk.
Foreign markets recorded revenue of VND2,406 billion. Regarding export activities, although the general situation was still assessed as difficult in the first 6 months of the year, Vinamilk continued to maintain its presence in traditional markets while actively increasing distribution channel coverage, brand recognition, product research and development... in new export markets. Regarding foreign branches, AngkorMilk in Cambodia still maintained growth of over 10%. In the following quarters, foreign branches will increase marketing activities and invest in sales systems.
Profits return to growth
Consolidated gross profit margin (“LNG”) in the second quarter of 2023 reached 40.5%, up 170 basis points compared to the previous quarter and equivalent to the same period in 2022.
Consolidated selling and administrative expenses in the second quarter of 2023 were VND3,630 billion, equivalent to 23.9% of net revenue. This expense was approximately equal to the same period in 2022, while revenue grew, showing investment efficiency in sales and other activities.
Consolidated financial revenue in the second quarter of 2023 reached VND384 billion, an increase of VND42 billion over the same period last year. Income fluctuations in financial activities mainly came from higher interest on deposits and interest expenses compared to the same period.
In conclusion, consolidated profit after tax reached VND 2,229 billion, up 6% over the same period in 2022 and increasing faster than revenue growth thanks to significantly improved GPM and effectively managed costs. Accordingly, consolidated profit after tax margin reached 14.7%, up 100 basis points over the previous quarter and up 60 basis points over the same period in 2022.
Accumulated in 6 months, total revenue and consolidated profit after tax reached VND 29,167 billion and VND 4,135 billion respectively, completing 46% and 48% of the yearly plan.
As of June 30, liquidity ratios for the first half of the year all improved, with current and quick ratios reaching 2.4x and 2.0x, respectively (2.0x and 1.7x at the end of 2022).
Changing Brand Identity – The First Step in a Comprehensive Transformation Strategy
Last July, Vinamilk changed its brand identity to suit the new development stage. The new brand represents the personality of "bold, determined, always being yourself" with the message Vinamilk sends to consumers is "we change for you!". The new identity was built by the company in cooperation with a team of more than 55 leading domestic and foreign experts.
Ms. Mai Kieu Lien - General Director of Vinamilk added that changing the brand identity is an effort to reposition, marking the first step in the process of modernizing the user experience and creating momentum for future breakthroughs, thereby increasing brand value, connecting better with young customers and creating a new perception of a Vinamilk with international quality and value for Vietnamese people.
After launching the new brand identity, Vinamilk will make a series of changes in digital transformation, personnel recruitment, management processes, etc. with the goal of reaching consumers faster and more effectively.
In the second quarter, Vinamilk also announced a highlight in its sustainable development strategy when it had the first Carbon-neutral Dairy Factory and Dairy Farm in Vietnam, and announced a roadmap to achieve Net Zero by 2050. This is also a strategic spearhead that the company's leadership has determined to promote in the coming time and will create many major changes in production and business towards sustainability.
