NKD's Orientation to the end of the year

17 September, 2010

Thanks to the successful overcoming the obstacles in 2009, the gradual recovery of the world economic in 2010 and 14%/year increase in consumption demand of candy increases (Euromonitor), the companies in the industry are offered with the best opportunities to strengthen their investment and development. However, many challenges are still available such as high rate of inflation, unstable exchange rate and monetary policy, increase in input costs and especially increasingly cut-throat competition in retail market due to integration trend.

By thoroughly analyzing the world and domestic economic situation as well as internal strengths and weakness of the enterprise in the first 6 months of 2010, North Kinh Do Food Joint Stock Company achieved many satisfactory outcome: Revenue of the first 6 months in the year was 305 billion VND, making up 89% as planned, increase in 13% compared with the same period of 2009. GP was 24.4% (74.5 billion VND), 21% increase compared with the same period of 2009 making up 87% as planned.

In order to fulfill and exceed the set targets in the last months of the year, NKD continues focusing on 3 main aspects namely business development to ensure the growth rate of revenue and market share, Production development to maintain its competitive advantage in terms of quality and price against the rivals and development of administration system to improve the Company's overall performance.

NKD'S TARGET ORIENTATION TO THE LAST MONTHS OF THE YEAR

ORIENTATION

  • Breakthrough development of fresh cake industry is made by strengthening its coverage, new product launch in combination with advertisement-based branding.
  • Growth of dried cakes is ensured by properly regulating the retail and wholesale channels, closely cooperating with KDC to launch customer program and new product releases.
  • It is assumed to take advantage of market opportunities in serving the Full-moon Cake Market, taking the spirit of full-moon cake campaign as a drive for others.
  • KEY Point of Sales will be quickly occupied. Its coverage and penetration capacity will be enhanced by reforming sales force, restructuring channels and customer-related plan occupation programs.

OBJECTIVES

  • Revenue will be 654 billion VND, 32% increase against the same period of last year. 960 billion VND will be achieved for the whole year, 25% increase against 2009 (20% increase is set by the General Meeting).
  • Pre-tax profit will be 78 billion VND, 17% increase against the same period of the last year. 100 billion VND will be achieved for the whole year, 22% increase against 2009.
  • 1000 KEY POSs and 20,000 points of coverage will be obtained.
  • Further 3 new Bakeries will be developed in Hanoi, Hung Yen and Hai Phong.
  • 80% of Full-moon cake market share will be achieved, positioning as the leader of bread industry.  The company's administration system will be further perfected.