KDF reaches 94 per cent of annual pre-tax profit target
Kido Foods (KDF), the frozen foods subsidiary of KIDO Group, on Friday said it had reached a growth of 20 per cent in pre-tax profit to VND44 billion (US$189 million) in July.
Despite the COVID-19 outbreak, the company’s pre-tax profit within the first seven months exceeded that of the whole year of 2019, reaching 94 per cent of the growth target set for 2020.
KDF’s net revenue in July was VND158 billion ($6.8 million), down by 8 per cent over the same month last year. Net revenue in the first seven months reached VND832 billion ($35.8 million), down by 11 per cent year-on-year.
In the latest report, KDF said the COVID-19 pandemic greatly affected companies operating in the conditional business industry and significantly reduced income and purchasing power of consumers.
When the epidemic broke out again in Viet Nam, the companies continued to be affected by the Government’s anti-epidemic responses, such as cancellation of festivals and closures of tourist areas, restaurants, schools and others.
“As a company directly affected by the external environment, KDF has always been proactive, closely monitoring the market situation. KDF has proactively implemented many measures to boost sales such as shifting the distribution channel, flexibly bringing products closer to consumers, and relocating food cabinets. Grasping the rapidly increasing consumption trend in modern channels such as minimarts, supermarkets and others, KDF continues to promote sales from these channels,” it said.
A sharp decline in income has negatively affected consumer demand and purchasing power. KDF has been analysing, reviewing and optimising its product portfolio. In the meantime, KDF has also been upgrading cabinets drastically, focusing on relocating cabinets to high-performing points, it added.
In the second quarter, the company launched two new ice cream products, namely Celano black sugar bubble milk and Merio strawberry, which were well received by consumers. The company's goal is not only to provide ice cream products to Vietnamese consumers but also to expand to the international market.
In addition, the company continues to closely monitor the market situation and COVID-19 developments to have prompt and timely responses. It is focusing on enhancing distribution channels, bringing products closer to consumers, and launching marketing and promotion campaigns to boost purchasing power.