Company Quarterly Earnings Update – VNM VN – 2019 Q3

Summary of the 9M/2019 results of Vinamilk JSC (VNM VN) 

9M/2019 results: highlights
  • Overall revenue increased by 6.4% y/y. Turnover on the domestic market, which contributed 85.1% to VNM’s total sales, rose by 5.8% y/y. Oversea subsidiaries delivered 9.6% higher sales. Direct exports rose by 10.2% y/y.
  • VNM’s gross profit increased by 7.8% y/y. The gross margin expanded by 70bps y/y, reaching 47.3%. The good result was due to a combination of increasing average selling prices and lower raw material prices. Moreover, VNM’s selling and administration expenses as a % of sales remained unchanged during this period. Overall, the company’s net profit was higher by 5.8% y/y.
  • VNM’s financial position stayed solid. Cash and cash equivalents accounted for 28.1% of total assets. The company’s leverage remained moderate with a D/E and a D/A of 0.15x and of 0.11x respectively.
  • As for all 2019, we forecast VNM’s total sales to rise by 6.3% y/y. Sales on the domestic and exports market are estimated to increase by 5.7%, and 6.6% y/y respectively. VNM’s continuous expansion of its overseas business is likely to continue to bear fruit with an expected sales growth of 13.1% in 2019.
  • For the period of 2020 until 2023, we forecast a CAGR of 5.1% for the company’s net sales. We estimate VNM’s overall bottom line to grow by a CAGR of 5.8% during this period, and the company should be able to maintain a robust net margin at 19.4%.

Company ratings and target prices are accessible for clients only.

If you are interested in getting full access to our paid Primary Research Materials feel free to get in touch with us at your convenience.

Our team is actively covering 50 companies in the listed Vietnamese equity space for our clients.

Featured image credit: