Back to Previous Page
Company Quarterly Earnings Update – VNM VN – Q4 2024
Summary of 9M/2024 results and outlook of Vinamilk JSC (VNM VN)
- Net sales grew 2.3% y/y to VND61,783bn, driven by stable local sales (82.2% of total) and a 12.6% y/y rise in international sales (17.8% of total). Despite a slight dairy market sales decline due to softer demand in the North from Typhoon Yagi, effective promotions, product diversification, and expanded online channels (TikTok, Shopee) kept VNM’s local sales stable. The double-digit growth from Green Farm drinking milk, nut-based drinks, yogurt offset a mild decline in formula milk. The company reported market share gains in drinking milk, yogurt, and condensed milk, though without details. International sales grew 12.6% y/y, led by key markets like the Middle East, U.S., Cambodia, and new contributions from Japan, Korea, Taiwan, and China.
- Net profit grew 5.8% y/y to VND9,392bn thanks to improved gross margin, supported by lower input costs, a greater mix of high-margin global sales and premium products. Following that, the company raised spending on consumer promotions and online marketing to boost sales, while keeping SG&A expenses stable at 24.6% of revenue. Net financial income declined by 4.6% y/y, reflecting lower deposit rates.
- Long-term outlook: Local dairy growth is driven by rising rural consumption and growing urban demand for premium and plant-based products. Rural FMCG spending has grown at a 6.0% CAGR over five years, outpacing urban’s 2.0%, given lower dairy penetration in rural area. VNM is leveraging rapid growth of e-commerce to expand its online presence and scaling B2B channels such as HORECA and F&B chains (currently contributing just 4% of its local sales). Globally, the Middle East retains a stable core market, while new Asian markets offer growth potential as VNM’s affordable products appeals to broader consumers. VNM’s subsidiaries in the U.S. and Cambodia are expected to sustain high growth via wider distribution and product launches.
- For 2025, Net sales are projected to be driven by a rise in domestic sales, supported by new product launches, high online sales, and a recovery in Northern market. Global sales are also expected to rise. The firm secured raw milk powder contracts through July 2025, anticipating a rise due to global trend. Gross margin is expected to rise as VNM manages input cost hike through lessening promotions and increasing premium product mix, driving net profit improve year-over-year.
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: https://www.vinamilk.com.vn/
