Foodstuff businesses benefit as Covid-19 keeps people homebound
Foodstuff businesses benefit as Covid-19 keeps people homebound
Many food processing firms have earned large profits this year with demand surging due to the COVID-19 outbreak as people have not been going out to limit contact with others.
Many of them have managed to do so despite having low charter capital.
Immediately after the outbreak began, cooking oil producer Tuong An Vegetable Oil Joint Stock Company (TAC) had to expand its production line to meet the demand.
In the first seven months of the year, its revenues were up by 30 per cent year-on-year to VND2.615 trillion, and profits by 23.3 per cent to VND370 billion.
KIDO Foods, the frozen foods subsidiary of KIDO Group, achieved revenues of VND832 billion. In the seven months, it achieved 94 per cent of its full-year pre-tax profit target.
The pandemic might be damaging the economy, but food processing businesses are having it good, analysts said.
Companies producing personal protective equipment (PPE) such as face mask also earned high profits, they said.
The Wakamono Group is manufacturing 20 tonnes of antimicrobial gecide fabric made using nano biotech daily to supply garment companies.
This fabric costs 30 per cent less than normal antimicrobial gecide fabric made without the use of nano biotech, Phan Quoc Cong, the company chairman, said.
