Vinamilk aims for US$3 billion in annual revenue for 2017

Vietnam Dairy Products Joint-Stock Co., the nation’s largest dairy producer, is expanding rapidly overseas in a bid to boost its annual revenue to US$3 billion in 2017.

Last year, Vinamilk posted US$1.7 billion in revenue, up 14% year-on-year and close to its US$2 billion target.

If it hits the revenue target in 2017, Vinamilk will break into the list of the top 50 milk producers in the world.

The dairy firm has also set a growth target of 8% over the next five years by expanding in the domestic market and boosting exports.

Under the plan, Vinamilk will expand its overseas business to account for half of its total revenue in the next five years.

The dairy firm has unveiled plans to gain a strong foothold in Asia through mergers and acquisitions after 40 years of focusing on the domestic market.

Vinamilk is speeding up its international expansion through acquisitions and investments in local dairy plants, including the purchase of a 22.8% stake in the Miraka plant in New Zealand, a 70% stake in Driftwood, a U.S producer, and a 51% stake in the Angkor plant in Cambodia.

The Vietnamese dairy firm reported revenue of over US$1 billion in the first half of 2016 and US$222.6 million in net profit, up 33% from the same period last year.

State investment arm SCIC, which holds a 44.7% stake in Vinamilk, said it will sell a 9% stake in Vinamilk for at least US$829 million on December 12, offering a minimum bidding price at VND144,000 (US$6.3) per share earlier this week.