Confectionery firm's profit skyrockets after stake transfer

Confectionery firm's profit skyrockets after stake transfer

A transfer of stake helped the pre-tax profit of confectionery corporation Kinh Do to skyrocket to VND6.58 trillion (US$301.83 million) in the first half of this year.

This was 49 times higher than the pre-tax profit recorded by the company in the same period last year.

It also exceeded the target set by the company for 2015 by 1.2 per cent.

The firm said in its financial reports that it earned VND1.18 trillion ($54.13 million) in turnover from production and business activities in the second quarter alone, a year-on-year increase of 14 per cent.

Financial revenues soared from VND37 billion ($1.70 million) to more than VND6.58 trillion ($301.83 million) during Q2, as the firm recently concluded a deal to sell an 80 per cent stake of Kinh Do Binh Duong to global snack powerhouse Mondelez International.

Kinh Do's total assets have also increased 76 per cent this year to touch nearly VND13.90 trillion ($637.61 million).

The shares of the HCM City-based company slid 0.5 point to end at VND48,800 ($2.24) each during this morning's session on the HCM City Stock Exchange.

The company had said in an online statement last December that the transfer of the confectionery business, including the mooncake segment, to Mondelez International was part of its restructuring plans.

At that time, the firm had said its shares were valued at more than VND9.80 trillion ($449.54 million), and the pre-tax transfer price for the 80 per cent stake was estimated at about VND7.85 trillion ($360.09 million).