KINH DO COMPANY (KDC) PLANS 2014 TURNOVER OF 5,150 BILLION VND

2 July, 2014

On June 30, 2014, KDC held its annual shareholder meeting and submitted for the resolution of these issues: business result in 2013, business plan for 2014, goals and strategies in 2014… In 2013, overcoming macroeconomic difficulties, KDC have completed its 4th stage of the company reengineering process: “Growth with benefit”, with the turnover of 4,561 billion VND and earnings before taxes of 619 billion VND. In 2014, KDC is planning the turnover of 5,150 billion VND and earnings before taxes of 660 billion VND. Dividend in cash is expected to be 20% of the share’s face value.

At the meeting, KDC Board of Director also presented their long-term strategy, the reengineering of confectionery business, as well as KDC’s investment plan in the near future. In that way, KDC aims to better serve customers with various basic products of high quality through FOOD & FLAVOR strategy, and at the same time boosts the corporation’s growth by joining 3 new businesses: cooking oil, instant noodles, and coffee.

SOLID FOUNDATION IN DEVELOPING STAGE & BREAKTHROUGH GROWTH

In 2013, KDC finished the 4th stage of the company reengineering process which has been consistently carried out over the past 5 years through 4 stages: preparation phase (2009-2010) – foundation phase (2011) – profits with efficiency phase (2012) - & growth with benefit phase (2013). This turning point has helped KDC build up a solid foundation with core competitive advantages, and paved the way for KDC’s steady development ready for joining new diversed businesses with FOOD & FLAVOUR strategy. Specifically:

  • KDC has built a strong brand portfolio in VN Food Industry with leading brand names such as Solite, AFC, Cosy, KDC moon cakes, Merino and Celano ice-cream.
  • Established a strong distribution system with 300 distributors and 200.000 sales outlets for confectionery business and cold chain.
  • Set up a solid and advanced administration system: KDC invested strongly in IT system for better management of the Corporation. ERP solutions are the foundation to enhance KDC’s management competency for the development of the corporation.
  • Built up professional and experienced staff: KDC has established the SBU (strategic business unit) operation system under the control of EMC (Executive Management Committee) to help SBUs and BUs operate efficiently. Besides, through various orientation, training, and development programs, KDC has built a well-trained and loyal workforce.

KDC INVESTMENT STRATEGY IN 2014

Within the first 10 years of its early development, KDC developed through the investment in technology and expansion of its product portfolio, and built  strong brand names. KDC grew in the following 10 years with financial leverages and M&A activities. In the next 10 years, KDC is going to diversify its business lines, expand its product portfolio to fully serve consumers’ needs. In that way, after careful preparation of the internal forces, capital funding  and operation system, KDC is joining 3 new businesses: instant noodles, cooking oil, and coffee. These basic business lines will supplement the Corporation’s confectionery, ice-cream as well as dairy business to synergize KDC’s channel in widely serving the consumer’s daily needs with full-day concept.

  • Instant noodles: KDC is going to cooperate with Saigon Vewong Ltd – a partner with long-established company and specialized in instant noodles area with A-one brand. With the market size of over 22,340 billion VND, young population, and being the 4th in the world in instant noodles consumption in 2013, instant noodles is considered potential with fast growing rate in VN.
  • Cooking oil and coffee: KDC is going to cooperate and buy shares of 2 Vietnamese companies. The estimated VN market size for instant coffee alone has reached more than 4,750 billion VND/ year with the growth rate of 15-20% / year. VN cooking oil market size is over 22,300 billion VND with the growth rate of 7-9%. According to Institute of Strategy Studies’ estimation, cooking oil consumption of Vietnamese is only about 7-8kg/ person, and is estimated to double in 2015 and almost triple in 2020. The trend shows a positive growth potential in the near future. In general, with these 3 new businesses, KDC aims at synergizing KDC’s strength and partners’ to continue its development of the new ventures.

Overcoming macroeconomic difficulties and business environment, KDC has gained dramatic business result in 2013, basing on large-scale advantage and efficient capital management that KDC has consistently built over the years. KDC continues harnessing those leverages to carry out the business plan for 2014 and gets ready for a new breakthrough – Diversity with FOOD & FLAVOR strategy.