Vietnam’s Lixco generates $97mn in domestic revenue
Vietnam’s Lixco generates $97mn in domestic revenue
The domestic market contributed over VND2.467 trillion (US$97.12 million) in net revenue to Ho Chi Minh City-based Lix Detergent Joint Stock Company (Lixco) in 2024, according to its business performance disclosure.
Chemical and cosmetic products of Lixco and other brands at a supermarket in Ho Chi Minh City. Photo: Hong Phuc / Tuoi Tre |
According to its latest report, the firm obtained net revenue of over VND703 billion ($27.8 million) in the fourth quarter of 2024.
During this period, the cost of goods sold, operational costs, and production expenses saw a decline amidst surging profits.
The company reported a 35-percent year-on-year increase in pre-tax profits in the fourth quarter of last year at VND62 billion ($2.5 million).
The positive outcome was close to the firm’s adjusted target for the period.
In early November 2024, Lixco’s board of directors passed a business plan for the fourth quarter, aiming for net revenue of VND682 billion ($27 million) and a pre-tax profit of VND61 billion ($2.4 million).
The firm booked a net turnover of more than VND2.876 trillion ($113.5 million) in 2024, surpassing its full-year target by VND4 billion ($158,000).
In addition, its pre-tax profit for the year surpassed the goal by seven percent at a total of VND256.5 billion ($10.5 million).
The domestic market contributed VND2.467 trillion ($97.12 million) in net revenue, while international markets brought in over VND409 billion ($16.38 million).
Lixco was formerly known as Huan Huan Chemical Manufacturing Company, which was established in 1972 as a private enterprise using Italian technology.
In 1978, after several transitions, its factory merged with the Viso factory.
Lixco currently specializes in producing synthetic detergents and cosmetics such as detergent, dishwashing liquid, and bleach, with an annual production capacity of approximately 450,000 metric tons across three plants in Ho Chi Minh City, Binh Duong Province, and Bac Ninh Province.
The company was privatized in 2003 before acquiring a washing powder production plant from Unilever joint venture in Vietnam.
Currently, the state-owned Vietnam National Chemical Group (Vinachem) owns a 51-percent stake in Lixco.
Fierce competition in detergent industry
According to NETCO, a company active in the same chemical and cosmetic sector as Lixco, in recent years, the competition in the detergent and cleaning product market has been relentless.
Local detergent brands have yet to establish a solid position in the market as they not only compete with each other but also with foreign brands.
Foreign rivals have significant experience in multinational markets, strong financial backing, expansive advertising strategies, and the ability to offer large promotional discounts.
Major multinational companies have abundant financial resources and sophisticated marketing strategies, allowing them to overpower competitors.
On the other hand, domestic businesses rely on their deep understanding of the local market and consumer psychology.
To maintain their market share, local companies have continuously been innovating and producing high-quality products at affordable prices.
