KIDO to further boost M&A deals

21-Apr-2018 Intellasia | The Saigon Times | 6:00 AM Print This Post

Food producer KIDO Corporation (KDC) will continue with merger and acquisition (M&A) deals to gradually gain a bigger local food market share, said KDC general director Tran Le Nguyen.

Answering questions of shareholders on the ability to dominate the domestic cooking oil market at KDC’s annual meeting on April 18, Nguyen said Vietnam Vegetable Oils Industry Corporation (Vocarimex), an arm of KDC, is completing procedures to raise its ownership in Golden Hope to 51 percent from the current 49 percent.

Nguyen explained why KDC decided to acquire a larger stake in such an unprofitable company like Golden Hope whose annual revenue is some VND1.6 trillion (US$70.2 million). With KDC’s distribution system and governance, the corporation may help Golden Hope operate more effectively, he said.

He took Tuong An Vegetable Oil JSC for example, saying its revenue and profit have surged after being merged into KDC.

KIDO is now the second biggest cooking oil producer in the local market with a market share of more than 30 percent. The corporation expects to lead the market in several years to come.

KDC will launch new products such as beverages, sauce and instant noodles this year. In addition, its subsidiaries will contribute to achieving the target by expanding to high-end and packaged products.

The corporation will work with its Thai partner to launch beverage and instant noodle products. In the initial stage, KDC will distribute such products and will go into production if the market shows positive signs.

KDC set a target to obtain revenue of VND12 trillion and a pre-tax profit of VND800 billion this year, surging over 70 percent and 40 percent respectively versus last year, and pay a cash dividend of 16 percent. The corporation will get into the essential commodity market this year as well.

KDC proposed its shareholders approve a plan allow for raising foreign ownership in the company to 100 percent and supplement business lines.

Last year, KDC generated more than VND7 trillion in revenue, a threefold increase over the previous year, buoyed by consolidated revenues of its subsidiaries, namely Tuong An (VND4.3 trillion), Vocarimex (VND4.4 trillion) and Kido Foods (VND1.5 trillion). Its profit reached VND561 billion, up a whopping 380 percent against 2016.

http://english.thesaigontimes.vn/59391/KIDO-to-further-boost-MA-deals.html

 


Category: Stocks, Vietnam

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