Purposeful strategic direction supports Vinamilk to overcome global pandemic
HO CHI MINH CITY, Vietnam, Aug. 13, 2020 /PRNewswire/ -- Vinamilk, Vietnam's leading dairy producer, has been one of the few businesses that managed to strive amid the global COVID-19 pandemic. Apart from solely boosting local operations, Vinamilk has continued to expand business overseas and is now reaping the rewards of a decision made during testing times. In announcing its earnings report for the second quarter of 2020, Vinamilk reported US $670.98 million (VND 15,495 billion) in net revenue, up nearly 10% against the last quarter.
During this period, export activities still recorded positive results despite the COVID-19 pandemic as the firm actively sought fresh opportunities, reflected by its exports to the Middle East under a $20 million contract, exports of condensed milk to China; and exports of soy-based nut drink and milk tea to South Korea in Q2.
These efforts contributed US $59.5 million (VND1,370 billion) to the total export net revenue, an increase of 26.8 percent against Q1 and an increase of 7.1 percent year-on-year, accounting for 9 percent of the consolidated net revenue.
In June, Vinamilk became the first dairy firm in Vietnam to be licensed to export milk into the territory of the Eurasian Economic Union (EAEU).
Strategic business direction pays off
Ms. Mai Kieu Lien, CEO of Vinamilk attributed part of the company's recent success in international markets to its proactiveness. This includes investing in modern production infrastructure, being proactive in raw material procurement and maintaining a strong domestic ground for overseas expanding.
Vinamilk's representative shared "Export a product to overseas market is a difficult task but to compete and survive on that market is even more challenging". With Vinamilk, the key competitive advantage is the quality of its nutritional products.
Thanks to the company's effort in product development, quality control and proactive consumer-orient approach, Vinamilk has become 'The Most Chosen Brand' in the Dairy and Dairy Substitutes category¹ in Vietnam.
Being one of top 50 largest dairy companies in the world, Vinamilk brand value is estimated to worth US $2.4 billion by Forbes Vietnam, an increase of US $200 million versus 2019. In Q2 of 2020, this respectable magazine has included Vinamilk in its annual 50 best listed companies for the eighth consecutive year.
In addition to these achievements, Vinamilk's effective business strategy helped provide job security to more than 10,000 employees while enabling a US$1.7million contribution towards Vietnam's fight against COVID-19.
Kantar Brand Footprint from 2013 to 2020, Urban 4 key cities and rural Vietnam
Investor relation contact:
Mr. Dong Quang Trung
T: + 84-28-54-155-555 (ext. 108247)
Ms. Le Thanh Lan Anh
T: + 84-28-54-155-555 (ext. 108219)
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