Q3 2024 Vietnam Dairy Products JSC Earnings Call - Extra Session Transcript
Key Points
- International markets showed strong performance with exports increasing by 10.3% and overseas subsidiaries growing by 8.5% in Q3.
- The company achieved a 3.5% revenue growth over the first nine months of 2024, with exports increasing nearly 18% and overseas subsidiaries by more than 13%.
- Yogurt, a high-margin product, now accounts for 25% of total revenue and has been the fastest-growing category over the past five years.
- Plant-based milk sales doubled compared to last year, making Vietnam Dairy Products JSC the market leader in this category, excluding soy milk.
- The company maintains a strong balance sheet with high liquidity, as cash and term deposits account for half of total assets, and debt is only 15% of total assets.
- Net consolidated revenue in Q3 declined slightly by 0.6% compared to last year, with domestic market revenue decreasing by 2.4% due to natural disasters.
- Net profit in Q3 fell by 5.1% year-on-year due to margin contraction.
- Mocchau Milk's sales performance was severely affected by the typhoon in the North, impacting overall revenue.
- The company has not raised prices for several years, limiting its ability to expand margins through price increases.
- SG&A margin on sales remained unchanged quarter-on-quarter but declined slightly year-on-year due to weak top-line performance.
Morning, everyone. This is Trung from Vinamilk IR team. Thank you for joining the call this morning to update about the Q3 and nine months business performance. So yesterday, the management, we already hosted the session, the main session, with the participation for the management, and this morning is the additional session for those who couldn't join yesterday.
As usual, we have the first 5 to 10 minutes to give you a briefing about the highlights of Q3 performance, and then we move to Q&A session. So I will start with the briefing presentation.
In Q3 24, the net consolidated revenue of the Vinamilk was more than VND15.5 trillion, declined slightly by 0.6% compared to last year. We still see some positive momentum from international markets with export increased 10.3% and overseas subsidiaries increased 8.5% in Q3. However, for domestic market, the revenue declined 2.4% because of the impacts by the natural disaster in the North that I will discuss further in the in the next slide.
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