Kido wants to take the No. 2 market share in the fresh bakery industry22/04/2022
The company specializing in selling cooking oil and ice cream recorded a net revenue of nearly 2,900 billion VND in the first quarter of the year, equivalent to 32 billion VND per day.
Kido Group has just announced its first-quarter business results, which continued to grow strongly when services resumed. Revenue scale reached VND 2,879 billion, up 24% over the same period in the first quarter of 2021.
The business said that the cooking oil industry continued to contribute positively to the overall revenue when accounting for nearly 88% of the proportion, the rest came from the food industry.
Kido also completed construction and officially put into operation KIDO’s Bakery Confectionery Factory with an area of 12,735m², with an operating capacity of 19,044 tons/year from April 17. Accordingly, the unit aims to occupy the 2nd position in the fresh bakery industry in Vietnam.
With the Chuk Chuk retail chain, the group has successfully opened many offline stores covering all districts of Ho Chi Minh City and is preparing to move north in the near future. Vibev Joint Venture products have also been on the market since mid-March.
The group’s gross profit also increased 24% over the same period to 548 billion dong. However, efficiency did not change much as gross profit margin was similar to the same period last year at 19%.
Operating expenses increased, making pre-tax profit only slightly increased by 1.3% to VND 152 billion. Profit after tax even reached 121 billion dong, down 10% over the same period last year.
The business explains this is due to the promotion of sales for the entire product portfolio and the strong development of the F&B chain. That causes the related operating costs to increase by 24-26% respectively.
Regarding the strategy of the coming quarters, Kido will continue to take relevant steps to cancel the registration of a public company for Tuong An Vegetable Oil (Code: TAC) and settle the interests of TAC shareholders.
Production activities, distribution activities, promotion, market expansion, scale… of Tuong An will be undertaken by Kido. In fact, the restructuring process helped improve Tuong An’s position as it continued to rank second in market share in the cooking oil industry with an increase of 39%.
With the ice cream industry, the business is expected to invest in more machines, proactively source raw materials and expand strongly into new categories such as snacks, moon cakes, fresh cakes… in which the goal is to occupy 2 position in the fresh bakery industry this year.
F&B Chuk Chuk chain continues its strategy of deeply penetrating the domestic market and gradually reaching out to the world. The joint venture will expand to develop beverage products.