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Heightened costs cut into Vinamilk profits
First-quarter net profit for dairy giant Vinamilk (VNM) came in 9.4 per cent lower than the same period last year, at more than VND1.387 trillion (US$65.7 million).
In a recent submission to the HCM City Stock Exchange, Vinamilk attributed the fall to rising the cost of promotion and advertising campaigns, and a jump in raw material costs.
Total expenses climbed 44.3 per cent over the previous period, reaching more than VND821 billion ($39 million), of which money paid for advertising campaigns accounted for nearly VND286.5 billion ($13.6 million).
Wage costs also soared 258 per cent to VND113.3 billion ($5.4 million) from nearly VND44 billion ($2.1 million) recorded previously. Meanwhile, raw material costs increased 8 per cent to VND14.3 billion ($677,700).
Net revenue amounted to VND7.678 trillion ($363.9 million), up 15 per cent over the same period last year. However, the rising cost drove the price to sales ratio up 3 per cent to 66.6 per cent.
The results equated to an earnings per share of VND1,665 per share in the first quarter.
Between January-March, Vinamilk paid VND1.6 trillion ($75.8 million) for lending and acquiring debt instruments from other companies. The company's short-term deposits grew from VND3.6 trillion ($170.6 million) to VND5.2 trillion ($246.4 million).
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