Kido forges ahead in vegetable oil segment

With Kido's increased share acquisition, the company is tied faster to most players in the vegetable oil market

In late May 2017, the company wrapped up the purchase of more than 32.8 million shares of Vocarimex (ticker code VOC), increasing its total stake to more than 62.1 million, equal to 51 per cent.

Currently, the vibrant vegetable oil market is home to nearly 40 businesses, several of whom have grown into big players, such as Cai Lan, Tuong An, and Nha Be Golden Hope.

Before acquiring a controlling stake in Vocarimex, in November 2016, Kido spent more than VND1 trillion ($45.4 million) on buying a 65 per cent stake in Tuong An JSC.

Besides, by late 2016, Vocarimex also held 49 per cent stake in Golden Hope, 24 per cent stake in Cai Lan, and 17.8 per cent in Tan Binh Vegetable Oil JSC.

According to Kido CEO Tran Le Nguyen, in the upcoming time the company will continue buying businesses in the food industry, and striking cooperative deals with units possessing strong product line-ups to maximise their advantage in the extensive distribution channel.

Kido’s accelerated investment into the vegetable oil segment has helped the company boost its revenue growth significantly.

Accordingly, in the first quarter of this year the company raked in VND1.25 trillion ($56.8 million) in net revenue, more than triple than last year, and accrued a profit of VND245 billion ($11.1 million), a 50 per cent jump on-year.

After acquiring a controlling stake in Vocarimex, Kido’s financial indices are forecast to undergo big changes, particularly from the third quarter this year. With its current size, Kido’s influence is expected to extend far beyond the reach it had when it was running in the confectionery business.

Particularly, before transferring its confectionery business to US-based Mondelez International in late 2014, the company’s revenue was VND4.95 trillion ($225 million) that year.

Kido has yet to convene its 2017 general shareholders’ meeting to deliver its official business targets for this year.

Market observers, however, assume that the company’s revenue might even hit VND7.6 trillion ($345 million) this year.

Kido reports foreign investors lining up for IPO of frozen foods subsidiary Kido Frozen Foods JSC (KDF) has attracted many foreign investors before its official initial public offering, said Tran Le Nguyen, deputy chairman of mother company KDC, at a conference introducing investment opportunities in KDF on March 27.

KIDO frozen food division announces IPO KIDO Corporation (KDC) subsidiary Kido Frozen Foods JSC (KDF) has just announced its plan to hold its initial public offering (IPO) at the beginning of April.

Kido closes vegetable oil acquisition On November 24, Foodstuff producer Kido Joint Stock Company (KDC) completed the purchase of a 65 per cent stake, equalling 12.34 million shares, in Tuong An Vegetable Oil JSC (TAC), according to information published on Ho Chi Minh Stock Exchange’s website.

KDC achieves 80 per cent of profit target on sale of division Food producer KIDO Group announced on Thursday it achieved 80 per cent of the year's profit target by the end of the third quarter after selling the remaining 20 per cent of is snack business to a foreign investor.

Kido gloves are off in M&A bout Kido Group plans to dominate the consumer foods market in 2016 by making aggressive merger and acquisition deals.