Vinamilk firmly holds its position as a leading listed company after 20 years of equitization

2023 marks the 20th anniversary of Vinamilk's equitization. Over two decades, the "giant" of the dairy industry has proven its production and business model's effectiveness and stable management capacity in the face of market changes.

More than a decade of being named in prestigious rankings

Last weekend, Nhip Cau Dau Tu Magazine, in collaboration with Thien Viet Securities Company, announced the ranking of the "Top 50 most effective business companies in Vietnam" (TOP50). In its 12th year, this ranking honours 50 businesses holding 34% of the total market capitalization, equivalent to 80 billion USD.

Top 50 "Most Effective Business Companies in Vietnam" measures the business results of businesses for 3 consecutive years, based on 3 growth indicators: revenue, return on equity (ROE) and earnings per share. Measurement results aim to evaluate the enterprise's management capacity objectively.

Also read: Vinamilk is in the top 5 most sustainable milk brands globally

Two more Vietnamese dairy producers licensed to export to China

With a return on equity (ROE) reaching 30% and a market capitalization of 6.57 billion USD, Vinamilk is the only representative of the dairy industry named in this year's rankings. The enterprise also maintained a sustainable position in the Top 50 for 12 consecutive years, demonstrating the enterprise's solid ability to withstand economic fluctuations over the past decade.

Mr. Do Thanh Tuan - Director of External Affairs Vinamilk received the title of Top 50 "Most effective business companies in Vietnam"

Previously, the "giant" of the dairy industry also appeared in the list of "50 Best Listed Companies" of Forbes Vietnam for the 11th consecutive year since this ranking.

Accordingly, in 2022, Vinamilk ranks 5th in market capitalization, with revenue and profit after tax reaching more than 60,000 billion VND and nearly 8,600 billion VND, respectively. The company aims to reach 63,380 billion VND in total sales by the beginning of 2023, up 5.5% from the previous year and 8,622 billion VND in profit after tax.

In terms of product structure, Vinamilk holds an overwhelming market share in many key product industries. The company owns more than 146,000 dairy cows under exploitation (including a system of farms and cooperative farmers) and operates 15 farms in Vietnam and Laos, along with 16 dairy factories, according to Forbes' report.

Vinamilk's factory system is constantly invested and expanded according to the highest international standards to keep up with the company's business growth.

Growth comes with sustainable development

2023 marks 20 years since Vinamilk officially equitized - a turning point that helped this enterprise skyrocket in charter capital, revenue and profit. Total revenue and pre-tax profit of the leading unit in the dairy industry have skyrocketed 15 and 13 times, respectively. Vinamilk had barely accumulated 1,590 billion VND in charter capital before equitization started in December 2003. The company's capitalization worth will have surpassed 159,000 billion VND by the end of 2022.

Vinamilk is also in the top businesses with the highest cash dividend payments on the stock exchange, with a total payment value for 2004 - 2022 of more than 76,700 billion VND. This unit also holds the leading position in the domestic market share of the dairy industry. The above numbers show the effectiveness of production and business models and management capacity over time.
Not only does it maintain a stable performance in domestic rankings, but effective production and business activities also help the Vinamilk brand increase its value in the eyes of international valuation units. In August 2023, Brand Finance (the world's leading brand valuation organization headquartered in the UK) announced that Vinamilk's brand value continued to increase to 3 billion USD (from more than 2.8 billion USD last year).

Sustainable development is 1 of 4 strategic spearheads of Vinamilk in the period 2022 - 2026

Thanks to that, this "big guy" increased one more rank, holding the number 2 rank in the "Top 100 most valuable brands in Vietnam" and continues to affirm its position as "The most valuable food brand in Vietnam" and "The 6th largest milk brand globally". In particular, Vinamilk is the only representative of Southeast Asia in the "Top 5 Most Sustainable Dairy Brands Globally".
"Sustainability is becoming an important trend. Vinamilk is promoting the trend of sustainable development in the food industry, capturing the needs of consumers who are becoming more conscious in choosing food. Thanks to that, they are always the most popular brand for Vietnamese people," said Mr Alex Haigh - Asia-Pacific CEO of Brand Finance.
Many things in common help businesses maintain high growth in revenue and profits. Notably, the level of commitment of the leadership team to the core business and sustainable development trends according to ESG criteria (Environment - Society - Governance). Sustainable development is also one of Vinamilk's four strategic spearheads in 2022 - 2026.