KDC: sees pre-tax profit growth in Q1/2014

Ho Chi Minh City / VN. (kdc) Vietnam´s Kinh Do Corporation (KDC) reports that its pre-tax profits increased 5,5 percent in the first quarter of the year. Net sales fell by 1,7 percent year-on-year, and the gross profit margin for the first quarter fell from 37,9 percent in 2013 to 35,8 percent in 2014. Explaining the slight fall, the company said that the Tet (Lunar New Year) holiday came earlier this year. and thus, some sales were recorded in the last quarter of 2013. Gross profit margin fell due to increasing minimum wages and packaging material costs, the company said in a news release. The confectioner said the company would continue to improve operational efficiency and management, and would pursue a merger and acquisition strategy to broaden its product base. For 2014, it targets sales of 5,1 trillion Vietnamese Dong (243 million USD) and pre-tax profit of 660 billion VND (31 million USD).

Kinh Do posted FY-2013 profit growth of 40 percent

Last year Kinh Do Corporation had a growth rate of 40 percent in after-tax profits, despite a challenging economic climate. The corporation posted after-tax profit of 501 billion VND (23,8 million USD) last year, compared to more than 357 billion VND (17 million USD) in 2012, the company said. The pre-tax figure was 612 billion VND (29 million USD), exceeding the target set by shareholders. «Although the macro economy has not recovered well and purchasing power remains low, KDC still exploited many opportunities last year», the company said in a statement. Total revenue gained last year was 4,6 trillion VND (219 million USD), up by more than six percent year-on-year. For 2014, the corporation will continue to consider food as their key business. Merger and acquisition will continue to be developed as investment opportunities.

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