This was a rare occasion where Mr. Thanh personally attended and shared his thoughts directly with the shareholders. During the meeting, Mr. Thanh also opened up about his decision to shift the focus from traditional confectionery to essential food products.
Mr. Trần Kim Thành, founder and chairman of Kido Group, shared his insights at the annual general meeting held on the morning of June 19, 2024.
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Kido Group, formerly known as Kinh Đô Joint Stock Company, mainly operated in the confectionery sector. In 2014, the company sold its confectionery business to a foreign partner, changed its name to Kido, and officially entered the essential food industry.
According to Mr. Thanh, this shift actually started 16 years ago, right after the financial storm hit the global economy. “Since 2008, after the financial storm swept the world, everything has become unstable, and looking at the macro perspective has become increasingly complex. Up to now, the world has never really stabilized again,” he said.
Drawing from his experience in 2008, Mr. Trần Kim Thành realized that only industries closely related to daily essential needs have the potential to weather the storms.
Therefore, he harbored plans to transform Kido from confectionery to essential goods. However, it wasn’t until 2014 that the group found a partner to take over the confectionery business.
With the substantial financial gains from this transaction, Kido acquired Vocarimex, an edible oil production company, marking their entrance into the essential food industry. After nearly a decade, the company has become a giant in the food industry, offering a diverse range of products, from edible oils and butter to fresh cakes, mooncakes, and their recent ventures into the bao and spice markets.
Currently, the company holds the leading market share in the ice cream industry with a 47% share (mainly Celano and Merino), is the second-largest player in the edible oil market with brands like Tường An, Marvela, and Olita; leads the plant-based butter category with nearly 75% market share, and is the top producer of steamed buns with the Thọ Phát brand…
Selling is the key to business success
Mr. Thanh also has a unique perspective on business operations, differing from some other companies.
“In business, the key to success sometimes lies not in the product or management but in the ability to sell. Maintaining distribution channels through a diverse range of products ensures a stable output,” emphasized Mr. Trần Kim Thành. “Thanks to this fundamental advantage, Kido smoothly navigated the COVID-19 pandemic, while many giants in the same industry had to shut down due to difficulties.”
Mr. Thanh also stressed the importance of strengthening internal capabilities. “If we don’t continuously improve our competitiveness, we will struggle to survive in the market,” the chairman asserted.
He added that Kido’s workload has significantly increased compared to the past due to market challenges, and the company has had to explore markets in remote areas.
Nevertheless, with its extensive distribution network and diverse product portfolio, Kido confidently aims for a pre-tax profit target of 800 billion VND in 2023. “Despite the challenges in the first half of the year, we remain optimistic about achieving our 2024 goals through the efforts of our management and the growth of our product categories. We aspire for Kido to restore its rightful scale,” shared Chairman Thanh.
KIDO Group Reports Earnings of VND 21.7 Billion in Q1 2024
In Q1 2024, KIDO reported after-tax profit of VND 21.7 billion, while in the same period last year, the company made a loss of VND 150.6 billion.
