15 August, 2014

In the second Quarter of 2014, Kinh Do Corporation (HOSE: KDC)’s net profit reached VND 60 bn, up 31% compared to the same period last year. Notably in the second Quarter, KDC spent more than VND 1,200 bn of investment in other areas.

KDC’s net revenue for the period reached VND 1,004 bn, up 12% compared to the second Quarter of 2013. Meanwhile, cost of sales is up by 9% tonVND 583 bn, making KDC’s gross profit increase 16%, at VND 421 bn. Gross profit margin is set at 41.9%.

Significantly, selling expense and business management cost have in turn increased 33% and 13%, at VND 262 bn and VND 101 bn. Consequently, KDC’s net profit rose 31% to VND 60bn.

Accumulated in the first 6 months of 2014, KDC’s gross profit reached VND 705 bn, an increase of 5% thanks to the launch of new products with higher profit margins. Meanwhile, gross profit margin remained at 39.2% due to the increase in salary base and utility costs.

KDC’s profit before tax (PBT) in the first six months increased 3% to VND 135 bn, equivalent to 21% of the annual plan (VND 660 bn). The company's net profit rose 19% to 93 billion VND.

As of June 30th 2014, KDC’s cash and cash equivalents increased by VND 860 bn to nearly VND 2,815 bn, primarily from the issuance of shares which generated a nearly VND 1,820 bn. In the first 6 months, KDC’s spending for investments in other areas reached more than VND 1,200 bn.

Reportedly, during the first half of 2014, KDC has announced to invest in three new categories namely instant noodles, cooking oil and coffee. The company’s inventories rose 14% to VND 363 bn; total assets increased 24% to VND 7,917 bn. Other long-term investments increased sharply from VND 15 bn to VND 709 bn which generated VND 700 bn of over 1 year term deposits.