Although all dairy enterprises reported profits in the first half of this year, they were divided into two opposite poles: the increasing side - the decreasing side.
According to forecasts from the US Department of Agriculture (USDA), total global milk powder production this year will increase by 1.5% compared to 2023, reaching about 9.34 million tons. Meanwhile, global demand for imported milk powder is expected to decrease by 1.1%, to 2.49 million tons.
With the global supply of powdered milk expected to be in surplus this year and China reducing imports of whole milk powder due to abundant domestic supply, many financial institutions predict that raw milk powder prices will anchor. continues to anchor at low levels throughout this year.
This helps the gross profit margin of dairy manufacturers continue to improve in 2024.
Maintain growth momentum through cost cutting
In that context, in general, the revenue of dairy enterprises in the first half of 2024 recorded growth. However, profits at companies record two extremes with an increase and a decrease.
At Vietnam Dairy Products Joint Stock Company (Vinamilk; HoSE: VNM) , in the second quarter of 2024, the company recorded net revenue of 16,655 billion VND, an increase of 9% over the same period last year. Although cost of goods sold increased, it was slower than the increase in revenue, so gross profit during the period was recorded at 9,588 billion VND, up 6% over the same period.
VINAMILK'S BUSINESS PERFORMANCE THROUGH THE QUARTERS
After deducting expenses, in the second quarter of 2024, Vinamilk reported a profit of 2,696 billion VND, an increase of 21% over the same period in 2023.
In the first 6 months of 2024, Vinamilk recorded revenue of 30,790 billion VND, an increase of 5%. Of which, the majority of the revenue structure comes from selling finished products with 38,993 billion VND.
Previously, Vinamilk was known as the dairy industry's most aggressive enterprise in spending on advertising and promotion costs. However, in the difficult business context, in recent years this company has reduced the above costs.
However, in the financial report for the first half of 2024, the above amount has tended to increase again. Specifically, Vinamilk has set aside nearly VND 4,800 billion for promotional service costs, product display and sales support, an increase of 7% over the same period.
Along with the above trend, LOF International Dairy Joint Stock Company (UPCoM: IDP) recorded revenue of 1,929 billion VND, an increase of 9% compared to the beginning of the year.
Although the cost price increased, the company's gross profit during the period still increased by 13% to 790 billion VND. In the same direction, LOF Milk's financial revenue reached 41 billion VND, an increase of 28%.
IDP'S BUSINESS PERFORMANCE OVER THE YEARS
On the contrary, the company's expenses recorded a decrease, except for selling expenses. Specifically, sales costs of LOF Milk reached 392 billion VND, an increase of 8%.
After deducting expenses, LOF Milk reported a profit of 288 billion VND in the second quarter of 2024, an increase of 23% over the same period last year.
In the first 6 months of the year, LOF International Dairy recorded revenue of 3,514 billion VND, up 5% over the same period. After tax, the company reported a profit of 511 billion VND, an increase of 13%.
In 2024, LOF International Dairy plans its business with a revenue target of 7,800 billion VND and after-tax profit of 850 billion VND. Thus, at the end of the first half of the year, this dairy enterprise has completed 45% of its revenue target and 60% of its profit target, respectively.
Opposite of profit
On the contrary, the general picture of the dairy industry still shows signs of decline from Moc Chau Milk and Hanoimilk, despite revenue growth.
Specifically, in the second quarter of 2024, Moc Chau Dairy Cow Breed Joint Stock Company (Moc Chau Milk; HoSE: MCM) reached 809 billion VND, an increase of 12% over the same period last year.
However, under the erosion of cost of goods sold, the company's gross profit during the period was recorded almost flat compared to the second quarter of 2023. In addition, financial revenue also recorded a decrease of 50% to 21 billion VND. In the opposite direction, Moc Chau Milk's selling expenses reached 194 billion VND, an increase of 11% compared to the same period last year.
MCM'S BUSINESS PERFORMANCE OVER THE YEARS
The reason is that bank deposit interest rates decreased and the company increased sales expenses to enhance marketing and advertising activities and expand the distribution network. After deducting expenses, Moc Chau Milk reported a profit of 56 billion VND, down 39% over the same period.
Accumulated in the first half of 2024, net revenue of Vinamilk's "family" enterprise reached 1,434 billion VND and profit after tax reached 106 billion VND; down 6% and 45% respectively over the same period last year.
In the same situation, Hanoi Milk Joint Stock Company (Hanoimilk, UPCoM: HNM), despite revenue growth, still "sadly" reported a decline in profits. Accordingly, Hanoimilk's sales revenue in the second quarter of 2024 reached 180.8 billion VND, an increase of 7% over the same period in 2023.
After deducting the cost of goods sold, the company recorded a gross profit of 32 billion VND, a slight increase of 3% compared to the beginning of the year.
HNM'S BUSINESS PERFORMANCE OVER THE YEARS
During the period, due to all expenses incurred compared to the beginning of the year, the company's profit was eroded to 9.4 billion VND, down 36% compared to the previous year.
Accumulated in the first 6 months of the year, Hanoimilk's net revenue reached 310 billion VND, a slight increase compared to the beginning of the year. Notably, the company recorded another income worth VND 7 billion, an increase of 44% compared to the beginning of the year. However, specific information about this income has not been disclosed.
In 2024, Hanoimilk plans to do business with revenue of 800 billion VND and pre-tax profit of 48 billion VND. Thus, at the end of the first half of the year, the company completed 38% of the revenue plan and 41% of the profit target respectively.
(nguoiduatin.vn)
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