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Vinamilk (VNM VN) – FY 2025 Earnings – Strong Q4 Profit Rebound on Cost Control
Summary of FY 2025 results and outlook of Vinamilk JSC (VNM VN)
- VNM recorded total revenue of VND63,646bn (+3.0% y/y) and net profit of VND9,414bn (-0.4% y/y). International markets were the main growth driver, rising 15.5% y/y to VND12,682bn, supported by sustained demand from Iraq and broader Asian markets. Domestic revenue remained broadly stable at VND50,964bn (+0.3% y/y), accounting for 80.1% of total revenue. Performance improved toward year-end following retailers’ adjustment to stricter tax and e-invoicing regulations. New product launches and expansion of dairy retail stores and e-commerce channels also supported sales resilience. Domestic sale recovery in Q4, alongside easing milk input costs and tighter control of marketing expenses, drove a strong rebound in profitability. Q4 net profit rose 31.7% y/y to VND2,827bn, partially offsetting earlier weakness.
- Looking ahead, the domestic market is expected to post low single-digit growth. Euromonitor projects total market value to expand at a 2.0% CAGR over 2025-2030. Yogurt and sour milk are expected to lead at 4.8% CAGR, followed by milk alternatives at 2.1%, supported by rising health-oriented consumption. In contrast, liquid milk and milk powder are projected to grow more modestly at 1.5% and 1.4% CAGR, respectively, reflecting urban market maturity and demographic shifts.
- VNM continues to reinforce its leadership through product innovation and channel expansion. In 2025, the company launched and relaunched 100 new products to capture shifting consumer preferences, including premium yogurt variants, plant-based offerings, and functional dairy drinks targeting elderly consumers. It also strengthened its presence in modern trade and e-commerce while deepening rural market penetration. Internationally, VNM aims to sustain momentum in its established markets while gradually expanding into additional geographies. Internationally accredited production standards, competitive pricing, and tailored offerings support its export competitiveness.
- In 2026, domestic sales are to increase by year-over-year on restocking demand following the completion of last year’s restructuring. International revenue is to decline slightly, reflecting weaker contribution from Iraq market amid ongoing regional tension which is partly offset by stronger demand in other export markets. Gross profit margin is expected to improve, supported by a decline in average milk input costs. According to the USDA, global milk supply remains ample following strong output late last year, while demand from major importers stays relatively stable.
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Featured image credit: https://www.vinamilk.com.vn/
