“2 con tom” instant noodles lowest profit in 10 years and record low dividend
In 2021, the Covid19 epidemic caused the revenue and profit of Colusa – Miliket (owner of the “2 con tom” noodle brand) to plummet, but the recent news of dividend payment made shareholders more confused.
Colusa – Milike Food Company said that in 2021, it will sell 16,300 tons of finished products. The company collected more than 570 billion VND, down 7% compared to the previous year and failed to fulfill the target of 710 billion VND originally set out.
Although all kinds of costs were cut, for example, the company cut 40% of its employees during that period, but the profit still went down, the company reported a profit after tax of VND 18 billion, down 36% compared to the previous year and is the lowest level in a decade.
Following that corollary, the shareholder who owns each Colusa share – Miliket, the owner of the “2 con tom” instant noodle brand, is about to receive a dividend of VND 1,700.
The rate of cash dividend for 2021 that has just been approved by the Board of Directors of Colusa – Miliket Food Joint Stock Company is 17%. This is the lowest level since this company first announced its dividend in 2013. In previous years, the dividend was usually maintained above 30% and in some years increased to nearly 34%.
Failure to achieve the profit target is the main reason for the sharp drop in dividends. According to the business management’s explanation, there are three reasons why the profit did not reach the target: the high price of raw materials, the cost of implementing the “three spot” model, and the arrears of land rent. previous years.
This year, the company aims to sell 19,000 tons of noodles, congee, noodle soup, and instant noodle soup. Planned revenue and profit before tax are VND 792 billion and VND 26 billion, respectively.
Instant noodles “2 con tom” are still the mainstay products, besides the products of instant noodles, porridge, noodles, instant noodle… This brand was present on the market before 1975 and almost monopolized the market. for a long time. The company’s paper noodles have a period of accounting for over 80% of the market share.
____________
Vietnam Startup Day 2022 – The most startup-minded business festival to expand your business to Vietnam market.
?25-26 August,2022 – HCMC, Vietnam
?Get Tickets: https://vietnamstartupday.bssc.vn/vi/dang-ky-tham-du/
?Booking booth in event: https://vietnamstartupday.bssc.vn/vi/dang-ky-trung-bay/
____________
Vietnam is one of the most dynamic emerging countries in the East Asia region with a digital population of 72.10 million internet users, and one of the rare economies having a positive GDP growth rate by 2020 and 2021. Vietnam is also a gateway to expanding your business to Singapore, Malaysia, Thailand, and other countries in Southeast Asia.
