Ice cream lifts KIDO's (KDF) profit amid otherwise gloomy scenario
Ice cream lifts KIDO's (KDF) profit amid otherwise gloomy scenario
Ice cream sales lifted KIDO Group’s pretax profits in the first quarter threefold though overall revenues declined.
They rose to VND61.5 billion ($2.65 million) as KIDO Foods, the subsidiary that sells ice cream, reported revenues of VND266 billion ($11.46 million), up 23 percent year-on-year.
Its gross profit was VND151 billion ($6.68 million), up 54 percent, while gross profit margin improved from 45.6 percent to 56.8 percent.
KIDO Foods (stock code KDF) is traded on UPCOM, the country’s bourse for unlisted public companies.
KIDO Group, which is listed on the Ho Chi Minh Stock Exchange (stock code KDC), bought an assembly line from multinational corporation Unilever BestFood 13 years ago and quickly became the market leader in the frozen desserts sector with three brands, Merino, Celano and Wel Yo.
KIDO Group’s revenues in the first quarter fell 7 percent year-on-year to VND1.55 trillion ($66.78 million) largely due to a decline in revenues in the cooking oil segment and prices of oil.
Tuong An Vegetable Oil Joint Stock Company (TAC), a KIDO Group member, only achieved net revenues of VND840 billion ($36.2 million), a drop of 22 percent.
Besides external factors, the company has also begun to focus on developing high-end product lines and reduced the proportion of revenues from popular products with lower margins.
In the event, its gross profit was down 8.4 percent to VND116 billion ($5 million).
Other member units, Vocarimex (VOC) saw net revenues plummet by 43 percent to VND626 billion ($27 million), while Golden Hope Nha Be Cooking Oil Company (GHNB) finally broke even after many years of losses, and even achieved a small profit of VND7 billion ($302,000).
