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KIDO acquires Golden Hope Nha Be

Released at: 11:13, 30/11/2018

KIDO acquires Golden Hope Nha Be

Photo: KIDO

Group completes re-acquisition of 51% in one of Vietnam's leading cooking oil producers.

by Hong Nhung

The KIDO Group Corporation (KDC) announced on November 29 it has completed re-acquisition procedures for 51 per cent of Golden Hope Nha Be (GHNB), which has among the highest market shares in Vietnam’s edible oil industry.

After the successful consolidation of Tuong An and Vocarimex, the KIDO Group continues to expand its business scale and influence in the edible oil industry after recently completing the re-acquisition.

GHNB has annual sales revenue of approximately $56 million with brands such as Marvela, Ong Tao, and others.

The company is a joint venture between KIDO’s Vocarimex and Sim Darby, with the former holding 49 per cent.

By repurchasing the 51 per cent equity interest in GHNB, KIDO now indirectly owns 100 per cent of the company. This is a strategic step in strengthening its influence in the local edible oil industry and targeting to become the leading food conglomerate in Vietnam.

The move comes after the company witnessed a fall in revenue in the last quarter, of nearly $83 million, down $8.6 million year-on-year.

After-tax profit was only $1.7 million, down 58 per cent year-on-year.

In the first three quarters of this year, KIDO met nearly half of its annual revenue target, largely due to declines in ice cream and yogurt. After selling its confectionery unit to Mondelez International, frozen products became one of its key segments, in addition to cooking oil.

The KIDO Frozen Foods JSC, a subsidiary of the KIDO Group, posted revenue of over $15 million in the third quarter, down 20 per cent year-on-year. Profit was less than $44,000, against $3 million in the third quarter of last year.

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