Food producer KIDO Group reported an increase of nearly 35.4 per cent in net profit to VND200 billion ($8.6 million) last year.
Its net revenues were however down 5.2 per cent to VND7.21 trillion ($311 million) due to a reduction in sales of edible oils, the company said.
It added that 79 per cent of net revenues came from the edible oil segment, 19 per cent from ice creams and 2 per cent from other businesses.
Revenues from ice cream increased by 10 per cent.
The company reduced overhead costs in the off-season, which helped improve the gross profit margin.
Its subsidiary Kido Foods (KDF) posted net revenues of VND1.38 trillion ($59.5 million) in 2019, up 10 per cent thanks to a focus on the ice cream segment, improvement in distribution channels, market expansion, and premiumn products while upgrading warehouses and factories and reorganising sales forces.
Increasing sales through modern channels like minimarts in big cities have helped KDF expand distribution and coverage and surpass competitors.
The company said: “Seeing the market trend, our company continued to focus on core ice cream products and invest in premium ice cream products. Gross profit grew by 21.8 per cent.”
Profit before tax was VND185 billion ($7.9 million), up 489 per cent.
Another member company, Vocarimex (VOC), reported a 41.5 per cent fall in net revenues to VND2.54 trillion, blaming it on intense competition and falling oil prices.
But profit before tax was 35 per cent above the target of VND243 billion ($10.5 million).
Tuong An Vegetable Oil Joint Stock Company (TAC) reported net revenues of VND4.14 trillion, a 6 per cent fall as it restructured its product portfolio in the mass and bulk segment amid fierce competition.
But profit before tax increased by 25.2 per cent to VND170.5 billion ($7.3 million). — VNS