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Vinamilk (VNM VN) – H1 2026 Earnings – Net Profit Rises 38.5% on Strong Sales Growth
Summary of H1 2026 results and outlook of Vinamilk JSC (VNM VN)
- Revenue reached VND34,996bn (+17.9% y/y), with domestic sales rebounding and international sales accelerating further. Domestic sales, making 76% total revenue, increased by 12.5% y/y on both a 3-4% list-price adjustment and a richer mix toward higher-priced products. On a quarterly basis, Q1 sales grew 20.4% y/y against last year’s low base from distribution-system restructuring, before moderating to a still-healthy 6.6% y/y in Q2 as restocking normalized. Meanwhile, international sales surged 39.2% y/y, accounting for 24% of revenue. Sales in Cambodia (a third of total international sales) more than tripled y/y as VNM captured demand displaced by the collapse in Thailand’s dairy exports to Cambodia following the border closure that took full effect since October 2025. Sales to the Middle East (~37%) still grew ~15% y/y despite the Strait of Hormuz disruption, as VNM rerouted Iraq-bound shipments through Jordan. Gross margin expanded to 43.1% from 41.2% on lower input costs, higher scale, and higher contribution of higher-margin products, lifting net profit by 38.5% y/y to VND5,596bn.
- Vietnam’s dairy market is forecast to grow at a 4.7% CAGR over 2025 to 2030 (Euromonitor), increasingly led by premium and differentiated categories. Baby food (both formula milk & food) and milk alternatives should outpace maturing staples such as liquid milk and condensed milk, while per capita consumption of 27 liters, still below regional peers, leaves room for growth as incomes rise. Despite falling birth rates, wider product variety and higher spending per child should support baby food value, while population aging drives adult and elderly nutrition. VNM is responding by broadening its premium, functional and plant-based portfolio, expanding its dairy store network toward 1,000 outlets by YE2026, and deepening ecommerce and modern trade penetration. Internationally, VNM plans to further penetrate existing markets and enter underserved Asian countries and new destinations, supported by wider range of tailored nutrition, premium products and stronger sustainability credentials.
- For H2/2026, domestic sales growth is projected to decelerate as restocking and low-base effects fade. International sales remain the key growth engine. Cambodia sales still lead as the H2/2025 comparison base still included Thai dairy imports until near-zero in October 2025, albeit offset by softer Middle East sales amid geopolitical disruptions. Gross margin forecast takes into consideration higher input costs flow through (Skim Milk Powder +15% y/y), while SG&A remains elevated on 50th-anniversary marketing spending, resulting in the relatively flat net profit year-over-year.
Interested in VNM? Read our previous analysis on VNM’s quarterly earnings.
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Featured image credit: https://www.vinamilk.com.vn/
