IDP is a familiar name to Vietnamese consumers with milk brands such as LiF, Kun, Bavi, and LOF.
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The IDP Board of Directors has announced the documents for the Annual General Meeting 2024, scheduled to be held on March 15th at 217 Nguyen Van Thu Street, Da Kao Ward, District 1, Ho Chi Minh City, according to the finalized list on February 19th, 2024.
Profit plan for 2024 is around 850-950 billion VND.
Looking back at 2023, IDP’s leadership stated that despite fierce competition from other companies in the same industry, especially in marketing and promotion activities, IDP’s market share continued to increase in all major segments participating in the market, including a 3% increase in Fruit Milk, 0.3% increase in Drinking Yogurt, and 2% increase in Chocolate and Oat Milk.
As a result, the company’s revenue reached a record high of 6,655 billion VND, an increase of over 9% compared to 2022, but only achieved 93% of the annual plan. Net profit increased by 10% to 894 billion VND, the highest level in history. Therefore, the company exceeded the profit target of 776 billion VND set for 2023.
In 2024, IDP plans to achieve a net revenue of 7,800-8,000 billion VND, corresponding to a 17-20% increase compared to the previous year. The projected net profit is estimated to be around 850-950 billion VND, which means a 5% decrease in the worst-case scenario and a 6% increase in the best-case scenario.
Regarding the distribution of profits, the company has completed the first dividend distribution of 2023 with a rate of 85% (8,500 VND/share) based on the finalized list on January 19th, 2024. IDP plans to distribute the second dividend for 2023; however, the rate, time, and payment method will be delegated to the Board of Directors to decide.
Relocation to Binh Duong, Company name and logo changes
One important agenda item that IDP will present to the shareholders is changing the name of International Dairy Products Joint Stock Company to Lof International Dairy Products Joint Stock Company. At the same time, the company’s brand identity, including the abbreviated name, logo, website domain, email, forms, publications, media, abbreviated name, etc., will be changed from IDP to LOF.
Source: IDP
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In addition, the Board of Directors proposes changing the registered office address from Thon Duc Thinh, Tan Linh Commune, Ba Vi District, Hanoi City to Lot C-13A-CN, N16 Street, Bau Bang Industrial Park, Dau Tieng District, Binh Duong Province.
To serve production and business needs and expand the export market, IDP proposes adding the business line of “Wholesale trade of other specialized goods not classified elsewhere,” including the trading of packaging, plastic products such as bags, bottles, cardboard packaging, paper packaging, etc.
Abandoning the plan to produce non-alcoholic beverages, continuing to request a delay in the implementation of the 2.8 trillion VND project in Binh Duong
 IDP factory in Cu Chi. Photo: IDP
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IDP, established in 2004, is a familiar name to Vietnamese consumers through milk brands such as LiF, Kun, Bavi, and LOF. The company has 2 factories in Ba Vi and Cu Chi. Currently, IDP is actively expanding its presence in the Southern market with a project in Binh Duong.
Specifically, the 2022 extraordinary General Meeting of Shareholders of IDP approved the establishment of the Investment Project of Lof International Dairy Products Joint Stock Company – Binh Duong Branch with the purpose of processing milk and milk-based products, producing non-alcoholic beverages, and mineral water. The project has a total investment of 2,800 billion VND, including 300 billion VND from the company’s capital contribution and 2,500 billion VND in loans.
In the written feedback round in July 2023, IDP shareholders approved the discontinuation of the production of non-alcoholic beverages and extended the start date of the milk processing project and milk-based product capacity of 300,000 tons/year from Q1 2024 to Q4 2024.
In the upcoming General Meeting of Shareholders, the Board of Directors continues to propose changing the construction schedule of the basic project to Q2 2024, the machine installation schedule to Q3 2024, and putting the construction into operation from Q1 2025.
Issuance of nearly 1.2 million ESOP shares
In the stock market, IDP’s stock price has remained stable at 250,000 VND/share in the past 8 sessions, with extremely low liquidity and many sessions without transactions. The company’s market capitalization is currently over 15,300 billion VND.
Recently, International Dairy Products announced the issuance of nearly 1.2 million shares under the Employee Stock Ownership Plan (ESOP), equivalent to 1.9% of the total outstanding shares. The issuance price is 10,000 VND/share, significantly lower than the market price of IDP, corresponding to a total issuance value at par value of nearly 12 billion VND.
Employees on the list to purchase ESOP shares will be required to make payment during the period from March 1st to March 11th, 2024. These shares will be restricted from transfer for a period of 1 year from the end of the issuance period.
| IDP stock price from the beginning of the year |
