Kinh Do net shoots up after restructure

Kinh Do net shoots up after restructure

Confectionery producer Kinh Do Corporation has reported a net profit of VND93 billion (US$4.4 million) in the first half, 22 per cent year-on-year growth.

In its latest financial statement, the company attributed the high growth to a surge in second quarter profits to VND60 billion ($2.8 million), a 31 per cent increase.

It was the result of improved operational efficiency, cost management, and better focus on more profitable categories after its restructure, it explained.

Sales in the quarter was up 12 per cent to VND1 trillion as the efficiency of its distribution systems improved. In particular, the company started to utilise the distributor management system to improve distribution coverage and focus more on retail business.

Company executives said the investment in sales systems and brand restructuring and the shift in focus towards retail have started to show positive effect on sales.

Kinh Do is a giant domestic company that plans to enter the instant noodles, coffee, and cooking oil businesses this year.

bizhub