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Kinh Do to merge Kido ice cream unit by year end
Kinh Do Joint-Stock Co., a Vietnamese maker of cookies, candies and snacks, plans to merge its Kido ice cream making subsidiary into it in the fourth quarter, Kinh Do Chairman Tran Kim Thanh said.
Kido will merge in the fourth quarter after North Kinh Do Food Processing Joint-Stock Co. and South Kinh Do Joint-Stock Co. merge with Kinh Do in the second quarter,” Thanh told Kido shareholders at the company’s annual meeting late last week in Ho Chi Minh City, Vietnam’s largest city.
Kido, like its parent based in Ho Chi Minh City, reported profit of more than VND19 billion (US$1.1 million) in 2007.
The company expects revenue this year of VND217 billion ($13 million), a 30 percent increase from last year.
Net income this year probably will drop to VND17.5 billion($1 million), the company’s annual report said, citing increasing consumer prices.
Kido last year planned to build an ice cream factory in northern Hung Yen Province to expand its business.
The company’s management board decided to delay the plan, citing inflation and high building material prices as the reasons, according to the annual report.
The Southeast Asian nation’s inflation accelerated to 25.2 percent in May, the fastest since 1992.
“Both Vietnam and the world’s economies are suffering a difficult period,’’ Thanh said, “We are still optimistic that Kinh Do Co. will grow this year because our food business will be less affected than other businesses.’’
Kinh Do’s net income rose 32 percent last year to VND224 billion ($13.47 million).
Kinh Do expects sales of VND1.6 trillion ($96.27 million) and a pretax profit of VND270 billion ($16 million) this year.
Thanhnien
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