• Q3 Net Consolidated Revenue: VND15.5 trillion, declined 0.6% year-on-year.

• Q3 Export Revenue Growth: Increased 10.3%.

• Q3 Overseas Subsidiaries Revenue Growth: Increased 8.5%.

• Q3 Domestic Revenue Decline: Decreased 2.4% due to natural disasters.

• Nine Months Revenue: VND46.3 trillion, growth of 3.5% year-on-year.

• Q3 Gross Margin: 41.2%.

• Q3 Net Profit Margin: 15.5%.

• Q3 Net Profit: VND2.4 billion, declined 5.1% year-on-year.

• Nine Months Net Profit Growth: Nearly 10% growth year-on-year.

• Probiotic Drink Nine Months Growth: Increased 30% year-on-year.

• Plant-Based Milk Nine Months Sales Growth: Increased 2 times year-on-year.

• Green Farm Fresh Milk Nine Months Growth: Increased 16% year-on-year.

• Balance Sheet Liquidity: Cash and term deposits account for half of total assets; debt accounts for 15% of total assets.

• Warning! GuruFocus has detected 4 Warning Signs with STC:VNM.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• International markets showed strong performance with exports increasing by 10.3% and overseas subsidiaries growing by 8.5% in Q3.

• The company achieved a 3.5% revenue growth over the first nine months of 2024, with exports increasing nearly 18% and overseas subsidiaries by more than 13%.

• Yogurt, a high-margin product, now accounts for 25% of total revenue and has been the fastest-growing category over the past five years.

• Plant-based milk sales doubled compared to last year, making Vietnam Dairy Products JSC the market leader in this category, excluding soy milk.

• The company maintains a strong balance sheet with high liquidity, as cash and term deposits account for half of total assets, and debt is only 15% of total assets.

Negative Points

• Net consolidated revenue in Q3 declined slightly by 0.6% compared to last year, with domestic market revenue decreasing by 2.4% due to natural disasters.

• Net profit in Q3 fell by 5.1% year-on-year due to margin contraction.

• Mocchau Milk's sales performance was severely affected by the typhoon in the North, impacting overall revenue.

• The company has not raised prices for several years, limiting its ability to expand margins through price increases.

• SG&A margin on sales remained unchanged quarter-on-quarter but declined slightly year-on-year due to weak top-line performance.

Q & A Highlights

Q: Can you provide the latest sales mix for Vinamilk, particularly the contribution of yogurt and other categories? A: Liquid milk accounts for about 40% of domestic revenue, yogurt 25%, condensed milk over 20%, with the rest being powder milk and non-dairy products. Formula milk is around 12%, and non-dairy products are about 3% to 4%. - Trung Dong, Investor Relations