Business DataSpeaks Property Markets Companies Economy Exchange rate Money

Vinamilk aims for $3 billion in annual revenue for 2017

By VnExpress December 2, 2016 | 11:00 am PT

Vinamilk products are displayed for sale at a Fivimart supermarket in Hanoi, Vietnam, October 7, 2016. Photo by Reuters/Kham

The dairy firm is expanding in the domestic and overseas markets.

Vietnam Dairy Products Joint-Stock Co., the nation’s largest dairy producer, is expanding rapidly overseas in a bid to boost its annual revenue to $3 billion in 2017.

Last year, Vinamilk posted $1.7 billion in revenue, up 14 percent year-on-year and close to its $2 billion target.

If it hits the revenue target in 2017, Vinamilk will break into the list of the top 50 milk producers in the world.

The dairy firm has also set a growth target of 8 percent over the next five years by expanding in the domestic market and boosting exports.

Under the plan, Vinamilk will expand its overseas business to account for half of its total revenue in the next five years.

The dairy firm has unveiled plans to gain a strong foothold in Asia through mergers and acquisitions after 40 years of focusing on the domestic market.

Vinamilk is speeding up its international expansion through acquisitions and investments in local dairy plants, including the purchase of a 22.8 percent stake in the Miraka plant in New Zealand, a 70 percent stake in Driftwood, a U.S producer, and a 51 percent stake in the Angkor plant in Cambodia.

The Vietnamese dairy firm reported revenue of over $1 billion in the first half of 2016 and $222.6 million in net profit, up 33 percent from the same period last year.

State investment arm SCIC, which holds a 44.7 percent stake in Vinamilk, said it will sell a 9 percent stake in Vinamilk for at least $829 million on December 12, offering a minimum bidding price at $144,00 ($6.3) per share earlier this week.

> Vietnam’s govt urged to sell entire stake in dairy giant Vinamilk