In the first quarter, International Dairy Products Joint Stock Company (IDP) recorded an after-tax profit of 236 billion dong, completing more than half of the whole year profit plan.

In the first three months of the year, the owner of Love in Farm milk brand recorded a revenue increase of about 10% over the same period, to VND 1,246 billion, bringing gross profit up by 6%. This period’s gross profit margin reached more than 41%, continuing to maintain a high level compared to the common level of many enterprises in the industry.

The company also cut costs related to sales and marketing, helping to reduce total selling costs by more than 25%. As a result, profit after tax increased by 33% over the same period, reaching VND 236 billion. Only in the first quarter of the year, International Milk has completed more than 52% of the full year profit plan.

Compared to the strong growth momentum in 2021, IDP sets a rather modest business plan this year. Because company leaders predict that the epidemic will still affect production and business activities and income of the majority of people. Milk is an essential consumer commodity, but demand has also been reduced when consumption in this industry fell 7% last year.

In addition, the company and the dairy industry also face the challenge of diversifying products, expanding scale in the medium and long term, searching for marketing strategies with products that are suitable for tastes…

This year, International Dairy has focused on building factories to prepare for future growth. Company leaders want to contribute 2,800 billion VND to Binh Duong branch project. In addition, the Cu Chi and Ba Vi projects, which were originally only for processing milk and dairy products, now add production of non-alcoholic beverages and mineral water.

After two years of changing hands, International Milk’s business results have improved markedly. Before that, this business has been doing badly in a row, with low profit or constant loss since 2014. In which, 2017 has the heaviest loss with nearly 300 billion dong. IDP starts improving business results and accelerates growth in 2020.

At that time, VinaCapital and Daiwa sold all their capital in International Milk. The company welcomes new shareholders including Ban Viet Securities, Lothamilk and Blue Point, and a few key individual shareholders. At the beginning of last year, Lothamilk divested all shares, the buyer was Gold Field International.

IDP shares also saw positive movements almost during the first 3 months of the year. This code hit a peak of 164,400 dong per unit at the end of March, close to the highest level in history at the beginning of October 2021. However, in April, the market price of IDP dropped to around 125,000 VND per share.

Recently, International Dairy stocks started a new uptrend, reaching the ceiling price in one session. IDP code was only listed at the beginning of last year, although the market price cooled down, it still increased nearly 3 times compared to the first trading day.

By VnExpress