Kinh Do divests financial investments
By Quoc Hung - The Saigon Times Daily
Workers at a cake production line of Kinh Do Corporation - Photo: Quoc Hung
HCMC – Kinh Do Corporation (KDC) has announced to basically finish divesting its financial investments in the year’s second quarter as part of its strategy of restructuring investments.
Kelly Wong, deputy general director for financials, said that the firm’s management board has decided to make divestments in both Nutifood and Tribeco as such investments are no longer suitable to its strategy.
Specifically, the stake transfer at Nutifood resulted in a loss of almost VND71.32 billion for Kinh Do while it earned VND1.7 billion from the divestment at Tribeco, according to its consolidated financial report of the second quarter.
Besides, the firm obtained VND18 billion by selling shares in its investment portfolio, but it did not mention the specific profit.
According to Kinh Do’s management board, the stake transfers at these two companies have left an impact on the firm’s short-term profit but will bring in long-term benefits, specifically with the resource focus on food production and business expansion in the future.
Regarding its staple products of confectionery and food, Kinh Do still achieved a revenue growth with an after-tax profit of over VND65.9 billion in the year’s first half despite economic difficulties.
Kinh Do suffered a loss of VND5.4 billion in the first six months resulting from the stake transfers. Besides, the firm will issue bonus shares to shareholders at a rate of 20% next month and then merge Vinabico into the group.