Profit falls after corporation moves away from confectionery into other segments.
The consolidated financial report of the KIDO Corporation (KDC) for the fourth quarter of 2015 reveals total revenue of more than VND442 billion ($19.89 million), down 66 per cent against the fourth quarter of 2014.
Gross profit was almost VND138 billion ($6.21 million) in the quarter, a sharp decline of 74 per cent quarter-on-quarter and down from 40 per cent of revenue to 31 per cent.
Profit before tax reached only VND68 billion ($3.06 million), down 45 per cent compared to the fourth quarter of 2014. However, consolidated net profit reached over VND111 billion ($4.9 million), up 19 per cent compared to the same period of 2014 due to corporate income tax refunds.
According to a representative from KDC, it selling its confectionery business and investing in new segments lay behind pre-tax profits falling 45 per cent over the same period in 2014.
For 2015 as a whole, however, KIDO recorded impressive profits as the first two quarters saw revenues from the sale of shares in its confectionary business to a foreign partner. Net profit was therefore over VND5.2 trillion ($234 million), up sharply compared with the VND547 billion ($24.6 million) recorded in 2014.
Short-term financial investments by the group were also up significantly, from VND700 billion ($31.5 million) to over VND1.9 trillion ($85.5 million). At the same time, investments in associated companies and joint ventures recorded higher profits compared with 2014, at VND86.3 billion ($3.88 million).
In July last year, KDC sold 80 per cent of shares in its subsidiary the Kinh Do Binh Duong JSC (BKD) to Mondelēz International. In 2014, despite the economic difficulties, KDC still recorded stable growth, with revenue of over VND4 trillion ($184 million), up 8.6 per cent compared with 2013, and profit before tax of VND663 billion ($30.8 million), or 10 per cent higher than planned.