BFC to expand to ASEAN market
BFC to expand to ASEAN market
Binh Dien Fertilizer Joint Stock Company (BFC) planned to pay a 30 per cent dividend in cash for 2015 and would enter the regional markets of Cambodia, Myanmar and Thailand this year, said the firm at its general shareholder's meeting in HCM City on April 27.
The firm reported that it earned VND6.1 trillion (US$273 million) in revenue and VND203 billion profit after tax in 2015, adding that its sales and profits saw some reduction due to less consumption by central highland farmers under the impact of a prolonged drought and lower coffee prices.
This year the firm planned to produce more than 650,000 tonnes of fertilizer, up 17 per cent compared to 2015. It also scheduled a revenue of VNĐ6.6 trillion and a before tax profit of VNĐ369 billion, as much as a year-on-year increase of 9 per cent and 5 per cent, respectively. BFC leaders told shareholders that if they met the plan, they would pay another 20 per cent dividend in 2016.
Also at the meeting, Binh Điền Fertiliser announced an issuing of 9.5 million bonus shares at the ratio of 5:1 for existing shareholders in 2016. After issuance, the total shares of BFC would reach 57 million, with a charter capital of VND570 billion.
In order to better serve the export and import of the products, the firm said it would accelerate the construction of a 3,000 tonne port in Long An Province where they transfer goods via a local river.
Market expansion
Binh Dien Fertiliser said after some introduction campaigns, its fertilizer brand Buffalo Head had gained a lot of trust from farmers in Cambodia and Myanmar, adding that sales in the two countries kept increasing.
BFC, one of the country's leading fertiliser producers, canceled a fertilizer plant in Dong Nai Province due to local difficulties with infrastructure. Instead it would research and invest in a fertilizer factory in Myanmar to dominate the new market, said the director of the board.
The fertilizer firm also planned to make gains in Thailand's market with special products that were developed to serve specific plantations. According to the firm, with its strong agricultural production, Thailand was a big market for three-component fertilizers that provided nitrogen, phosphorus, and potassium (NPK fertilizer) products. However the local fertilizer products in Thailand were mostly generic for all plantation types, and were less effective than BFC products that are developed for specific types of plantations. Thus, the firm said the Thai market was a good destination for development.
Based in HCM City since 1973, the firm engages in the manufacture and trade of fertilizer, cattle-feed and aqua-products. It also produces, processes and packages insecticides. It is among the largest fertilizer firms in the country, serving 30 per cent of the nationwide NPK fertilizer demand.
With one plant in Long An, and four subsidiaries in other provinces, BFC has the capacity to produce over one million tonnes of fertilizer each year. Its distribution system of 200 wholesale points and over 2,500 retail points also included Laos, Cambodia and Thailand.
On April 27, BFC shares ended at VNĐ30,900 each on the HCM City Stock Exchange.
