KIDO Corporation will continue with merger and acquisition (M&A) deals to gradually gain a bigger domestic market share, said KIDO General Director Tran Le Nguyen.
Nguyen said that Vietnam Vegetable Oils Industry Corporation (Vocarimex), an arm of KIDO, is completing procedures to raise its ownership in Golden Hope to 51% from the current 49%. Nguyen explained that the reason the company decided to acquire a larger stake in such an unprofitable company like Golden Hope, whose annual revenue is only Dong 1.6 trillion (US$70.2 million), is the confidence that KIDOís efficient distribution system and governance will assist Golden Hope to operate more effectively. The remaining 49% stake of Golden Hope is owned by Vietnam Vegetable Oils Industry Corporation.
He mentioned Tuong An Vegetable Oil JSC as an example of which its revenue and profit surged after merged with KIDO.
KIDO is now the 2nd largest cooking oil producer in Vietnam with a market share of more than 30%, and it expects to lead this market in the near future.
Apart from cooking oil, KIDO will also launch new products such as beverages, sauces and instant noodles this year. In addition, its subsidiaries will expand into high-end packaged food products. KIDO will also work with its Thai partner to launch beverage and instant noodle products. In the initial stage, it will distribute such products and will go into production if the market shows positive signs.
KIDO aims to achieve sales revenue of Dong 12 trillion (US$530 million) and a pre-tax profit of Dong 800 billion (US$35.2 million) this year, representing over 70% and 40% growth respectively from 2017. Last year, it generated more than Dong 7 trillion (US$310 million) in revenue, a 3-fold increase over the previous year, buoyed by consolidated revenues of its subsidiaries, namely Tuong An (Dong 4.3 trillion), Vocarimex (Dong 4.4 trillion) and Kido Foods (Dong 1.5 trillion).