3rd quarter sales growth still steady
Year-to-date sales growth KDC reached 6.7% driven by steady growth in the confectionery business during 3Q2013.
Year-to date gross profits increased by 7.7% compared to last year to reach a gross profit margin of 44.9% partially due to mid-Autumn and also due to higher margin product continued to grow as part of the restructuring effort.
Earnings before interest and taxes (EBIT) margin for year-to-date reduced slightly to 13.9% from 14.3% contributed as trade promotions for the Kinh Do 20th anniversary campaign ramps up.
Despite the higher sale and marketing cost, SG&A cost as percentage of net sales only increased from 30.2% to 31% for the year as general admin cost was managed and controlled well in line with target.
Operating profits YTD increased to over VND 517bn (+23.2% year-onyear) an improvement in operating profit margin (OPM) to 15.1% from 12.2%.
KDC has continued to benefit from improvements in supply chain management and restructuring of the product portfolio. However SG&A costs increased slightly due to the one-time cost of the trade marketing campaigns to promote products leveraging the Kinh Do 20th anniversary.
Continued focus on working with distributors and retailers has helped to keep demand steady despite a difficult market environment.
By the end of Q3, the company has achieved 84.0% of its profit before tax target for 2013 with a steady outlook for the last quarter due to Tet sales starting in December.
About Kinh Do Corporation
Kinh Do Corporation is Vietnam’s leading confectionary company with a diversified portfolio of category leading brands, built over the last 20 years.
Throughout its extensive history, KDC has built a market leading presence in a wide range of confectionary products cakes, buns, moon cakes, snacks, cookies and ice cream.
With the company’s strength in distribution, production, marketing and sales, Kinh Do aims to continue to maintain its dominant position in confectionary and also leverage the best in market execution to continue to expand as a market leading food company.