Items on the agenda included the possible divestment to be undertaken by the SCIC.
Vinamilk held an investors meeting on the afternoon of July 7 to discuss how the company is being divested and its business plans and merger and acquisition (M&A) plan.
Chairman Mai Kieu Lien said it’s not known whether the Government will allow the State Capital Investment Corporation (SCIC) to divest from Vinamilk. The Government encourages enterprises to equitize and the divestment will be decided by the SCIC.
Regarding investment of VND4 trillion ($183.40 million), Ms. Lien said it will go to two main purposes: finding cheaper sources of raw materials and investing in a milk company to produce finished goods that already have market share and brand reputation.
She said as the end of April 2014 the price of raw materials began to fall and is expected to continue to fall until the end of third quarter. Vinamilk has prepared its material supplies for 2015 so any change to the price will not affect its business plan.
As for foreign markets, Vinamilk has been exporting to Cambodia for about ten years. This month it will introduce a new brand, Angkor Milk, and in October will introduce condensed milk to the country.
Ms. Le Quang Thanh Truc, Investment Director at Vinamilk, said that in the first half of the year it reached 50 per cent of its annual plan, with revenue of VND19.21 trillion ($88.07 million), and profit after tax of VND3.75 trillion ($17.19 million), accounting for 55 per cent of the plan.