Consolidated profit before tax from core food business by the third quarter reached VND383 billion.

16 September, 2011

Kinh Do - Positive business results in 2011 Mid-Autumn Festival

Kinh Do Corporation (Ticker: KDC) ended the 2011 Mid-Autumn Festival with very positive results, reaching a total output of more than 2,100 tons of moon cake. Net revenue from the moon cake business increased 31% from VND497 billion in 2010 to VND651 billion in 2011. Gross profit from 2011 moon cakes revenues increased 26.22% year-on-year, from VND286 billion to VND361 billion. Profit before tax from moon cakes contributed VND182 billion to the consolidated profit before tax, increasing 15.84% compared to last year.

The positive results are due to contributions of the high-end product, ‘Trang Vang’ cake which continues to meet customers’ demand in terms of design, quality and attractiveness. This was especially true in terms of the “Green” cake products which were introduced by Kinh Do this year and are made from 100% healthy, natural ingredients.  This including the traditional products was both enthusiastically received by customers.

KDC’s expected business results for the third quarter of 2011

From the very positive results of the 2011 Mid-Autumn Festival, year to date consolidated results at the third quarter reached approximately VND3,050 billion, with gross profits of VND1,238 billion and consolidated profit before tax from the food business of VND383 billion.

In addition to the moon cake business, the overall business result of the other food categories continues to be strong. In particular, confectionary sales increased by approximately 43%, ice cream and yoghurt grew by 51%.  The growth of the five major product groups including crackers, cake, bread, ice cream and yogurt contributed to nearly 90% of total sales.

The annual revenue target of VND4,200 billion (including profit from food business of VND500 billion) should be reached in 2011. Based on the positive results of 2011 Mid-Autumn Festival in conjunction with the expectation of continued strength of the overall core business through the fourth quarter, we expect to achieve and potentially exceeding the current plan.  Although the economic situation remains difficult, the long-term vision and strategy of the Management Team will see the growth of the company continue this year and in subsequent years.