Kinh Do Group Continues to Grow Key Food Business

28 November, 2011

Record Growth in Core Food Business

  • Strong underlying food business growth driven by 32.4% growth in revenue for moon cakes in the 3rd quarter.
  • Overall sales growth 28% for the quarter and 36% year to date compared to 2010 year to date pro forma.
  • Net profit after tax for the core food business at the end of the 3rd quarter is VND 221bn versus VND 194bn for the same period last year.
  • Excluding the effects of the disposal of SJC in 2010, core food results improved 18% (YTD2010 vs.YTD 2011 NPAT).

Business Unit Growth Continues to Accelerate

  • Business units continue to track strong growth.
  • Key growth areas for KDC this year include: Cracker/Wafer, Bun, Moon Cake, Ice Cream which have seen year on year growth rates of 70.8%, 40%, 32.5% and 32% respectively.
  • Raw material costs continue to be manageable with moderate increases being passed along to consumers.

Management Outlook  FY2011

  • Expectations for Tet sales are positive as our product categories target the mass to mid-market.
  • Total turnover for FY2011 is expected to reach VND 4,200bn (31% year on year increase from pro forma 2010).
  • Costs will be stable through the end of the year including both raw materials and overhead costs, expectation of GPM to be 35.7% for the year.
  • Management expects EBITDA to on track to achieve VND 550bn for the full year 2011 compared to VND 284bn for 2010 for the core food business.