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Tuong An Vegetable Oil targets $192mn in 2017 revenue

Released at: 14:38, 08/06/2017

Tuong An Vegetable Oil targets $192mn in 2017 revenue

Photo: TAC

Company's business performance much-improved since becoming a subsidiary of KIDO.

by Quynh Nguyen

The Tuong An Vegetable Oil Company (TAC), the largest subsidiary of the Vietnam Vegetable Oils Industry Corporation (Vocarimex), targets 2017 revenue of VND4.37 trillion ($192.2 million), pre-tax profit of VND165 billion ($7.26 million), and a dividend payout of 16 per cent, up 97 per cent compared to 2016.

TAC’s business performance improved significantly last year after becoming a subsidiary of the KIDO Group Corporation, recording revenue of VND3.98 trillion ($175.1 million), up 11 per cent against 2015, and pre-tax profit of VND83.8 billion ($3.68 million).

In order to achieve the goals set for 2017, TAC restructured its management model and operations. With experience in management and operations, KIDO will support TAC to improve its profit margin by expanding distribution channels and completing value chains.  

Deputy CEO of KIDO, Ms. Nguyen Thi Hanh, said that TAC has set two main goals: increasing revenue through marketing and changing its distribution model from “sell in” to “sell out”. The second raises revenue by focusing on increasing the proportion of high margin products and promoting key product groups in Ho Chi Minh City and the Southeast region.

TAC is the second-largest cooking oil company in the country, with a 22 per cent market share.

KIDO was granted a license last October by State Audit of Vietnam (SAV) to bid to purchase a 65 per cent stake in TAC, or 12,337,130 shares.

In January, KIDO was given permission to hold more than 51 per cent in Vocarimex without needing to conduct a takeover bid.

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