HCM CITY (VNS) — The leading domestic confectionery producer, Kinh Do Corporation (KDC), yesterday said it would expand production in new categories of noodles, coffee and edible oil in an aim to enlarge its market share.
At its annual shareholders' meeting in HMC City yesterday, KDC Vice President Tran Quoc Viet said the growth of the confectionery industry was expected to be low in coming yeas, but food consumption in Viet Nam, as a developing country, would remain stable.
Viet added that KDC would continue to focus on growth and expansion in the coming year through diversification into new categories, countries and consumers.
He said that KDC would work with Sai Gon Vewong to sell a variety of instant noodle products in Viet Nam.
The company will introduce its first new product in the third quarter, with the goal of becoming one of the top three players in the instant noodle market.
It will also become a strategic shareholder of Vocarimex and Phin Deli through an equitisation process to make edible oil and coffee.
To fulfill the goal, KDC will shift all of its activities related to confectionary production to the Kinh Do Binh Duong Corporation.
After restructuring the company, KDC will operate in eight main categories, including confectionary, ice cream and dairy, noodles, oil, coffee and retail.
Last year, the corporation posted revenue of nearly VND4.6 trillion (US$219 million) and a pre-tax profit of VND619 billion ($29 million).
For 2014, it is expected to reach revenue of VND5.2 trillion ($248 million) and pre-tax profit of VND660 billion ($31 million), up by 13 per cent and 6.6 per cent year-on-year, respectively.
This year, KDC will share dividends by cash at a rate of 20 per cent per share. — VNS