Baker Kinh Do to loosen its waistband

Wednesday, May 21, 2008
At its annual meeting last Friday, the HCM City Stock Exchange-listed Kinh Do Corp (KDC) aprroved an investment portfolio for this year totalling VND1.488 trillion (US$93 million).

Of that, VND160 billion will be invested in Kinh Do Binh Duong, one of its member companies. Another VND277 billion will be put into other food companies, according to chairman Tran Kim Thanh.

Meanwhile, real estate investment will account for VND1.051 trillion. It includes capital contributions to three apartment and office projects in HCM City.

This year the bakery North Kinh Do and ice cream maker Kido will be merged into KDC.

KDC will target a turnover of VN1.6 trillion and a gross profit of VND270 billion, compared to last year’s figures of VND1.238 trillion and VND222 billlion, respectively.

Of the turnover, exports to more than 30 markets will be almost $10 million, up by $4 million over last year.

Thanh expects to increase the number of distributors from 130 in 2007 to 180 nationwide. Company products will be available at 75,000 retail shops, 25,000 more than last year.

Meanwhile, North Kinh Do (NKD), listed on the Ha Noi Securities Trading Centre, plans to put VND50 billion ($310,000) into business expansion this year.

Shareholders at its annual meeting held in HCM City last Saturday assented to let the money go to a new production line and a storehouse for finished product.

Five new bakery shops in Hanoi will open this year to bring its network in the capital to 14. North Kinh Do will also contribute additional capital to the food and beverage company Tribeco-Mien Bac to hold 15 per cent of the company.

This year KDC is eyeing a turnover of VND700 billion, a year-on-year increase of 25 per cent. Of that, the company should rake in VND79 billion in net profits, 10 per cent higher than last year.

Shareholders of KDC and NKD may receive the same dividends as last year: 18 per cent in cash and another 22 per cent in equity.(VNS)