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Vinamilk (VNM VN) – H1 2025 Earnings – Domestic Setbacks Offset by Rising Global Sales
Summary of H1 2025 results and outlook of Vinamilk JSC (VNM VN)
- Net revenue declined 3.6% y/y to VND29,659bn, driven by a 5.6% drop in domestic sales (79.7% of total revenue), following short-term disruptions from distribution restructuring in the traditional channel in Q1. Although distributors resumed stocking in Q2, with sales 36.0% higher than Q1, normalization may take another quarter. Meanwhile, global sales grew 5.1% y/y (20.3% of total), supported by strong demand in the Middle East and Asia, partly offsetting delayed orders from Cambodian distributors amid border tensions with Thailand.
- Net profit declined 16.9% y/y to VND4,043bn reflecting a narrower gross margin of 41.2% (-100bps y/y) on higher input milk material costs, wage adjustments, and slightly higher selling and administration expenses. The higher contribution of modern trade channels also required more discounts and intensified spending on marketing and branding during the increased competition from other local brands.
- Outlook: Vinamilk is well-positioned to regain high single-digit growth, supported by product innovation, brand renewal, and overseas expansion. Vietnam’s dairy market offers moderate growth potential, with per capita consumption at 28 kg in 2023—still below regional peers. However, the rise of modern trade and e-commerce is intensifying competition among both local and international brands, as consumers become increasingly sophisticated with greater choice. Over the past two years, VNM has responded proactively, not only through premiumization and a launch of new product variants that address health-oriented trends—such as more fresh milk options, upgraded infant formula milk featuring Vietnam’s first infant formula with six human milk oligosaccharides, and plant-based alternatives—but also by refreshing its brand image through modernized packaging, revamped retail stores, and updated marketing approaches across offline and ecommerce channels. At the same time, it continues to explore overseas markets, leveraging its competitive pricing as a key advantage.
Interested in VNM? Read our previous analysis on VNM’s quarterly earnings.
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Featured image credit: https://www.vinamilk.com.vn/
