Ms. Mai Kieu Lien: Vinamilk prioritizes keeping selling prices stable to support purchasing power

The above message was stated by Vinamilk leaders at the annual shareholders’ meeting on the morning of April 22. According to Ms. Lien, in case the increasing trend lasts, the company will adjust according to the roadmap, avoiding sudden increases and the expected increase is only about 2-3% to limit the impact on consumers.

The prospect of purchasing power is also an issue of concern to many shareholders this morning when the dairy industry is in a downward trend, although general consumption has shown signs of recovery.

Ms. Mai Kieu Lien, General Director of Vietnam Dairy Products Joint Stock Company (VNM), said that the fast-moving consumer goods (FMCG) industry in the first quarter improved, increasing by 4.3 percentage points over the same period. However, the dairy industry alone still had negative growth of about 3.7%.

“If there are no positive factors, while geopolitical fluctuations are still unpredictable, purchasing power will hardly have the motivation to increase strongly again,” she said. However, if the business maintains its current growth momentum, Vinamilk is expected to contribute to pulling this market up by about 1.5-2% this year.

The picture of weak purchasing power is also clearly reflected in 2025 – a period recognized by business leaders as a “year of testing”. The dairy industry was under pressure when demand decreased by 2.4%, input costs increased and competition was fierce, while Vinamilk simultaneously implemented internal restructuring. Although creating short-term pressure, this process is considered necessary by businesses to strengthen long-term competitiveness.

In that context, the business still maintains stable growth. The company’s consolidated revenue reached 63,724 billion VND, an increase of 3.1% over the same period and the highest level ever. The business’s profit after tax reached 9,414 billion VND, slightly decreasing due to the impact from the first quarter but gradually improving over the following quarters; EPS reached 4,028 VND.

This year, Vinamilk targets consolidated revenue of 66,477 billion VND and profit after tax of 9,828 billion VND, an increase of about 4% compared to the previous year, in the context that the market is forecast to recover slowly.

At the end of the first quarter, the company recorded consolidated revenue of 16,178 billion VND and profit after tax of more than 2,458 billion VND, an increase of 24.7% and nearly 55% respectively compared to the same period in 2025.

Regarding profit distribution, shareholders approved the 2025 cash dividend of 43.5% (4,350 VND per share). The company has previously advanced 25%, the remaining 18.5% will be paid by the Board of Directors within 6 months from April 22. For 2026, the business plans to maintain cash dividends of at least 50% of profit after tax, flexible according to actual business results.

Responding to shareholders’ concerns about the low market price of VNM shares, Ms. Mai Kieu Lien said that the stock price depends on market supply and demand, business results and sustainable development prospects of the enterprise. “Not only Vinamilk, many other stocks also decreased following the general market movements,” she said, emphasizing that current dividends are still maintained at an attractive level.

From an operational perspective, Middle East tensions put export activities under pressure as shipping times lengthen and logistics costs increase. Vinamilk has adjusted shipping routes, coordinated with partners to ensure delivery schedules, and worked with suppliers to stabilize raw material sources. In the long term, businesses continue to diversify markets and supplies to reduce dependence.

In the international market, the Middle East is still a traditional region, contributing about 7.7% of VNM’s consolidated revenue, maintaining double-digit growth in 2025 and the first quarter of 2026. Meanwhile, China recorded growth of over 20%, thanks to products developed specifically according to consumer tastes.

In parallel with business activities, the congress also approved the dismissal of member of the Board of Directors for Mr. Alain Xavier Cany according to the resignation letter, and at the same time planned to elect additional personnel when the current number is lower than the maximum according to regulations. Enterprises also adjusted and supplemented a number of business lines according to new regulations, expanding into the retail and information technology sectors.

Regarding long-term prospects, Vinamilk leaders assess that the Vietnamese dairy market still has room for growth thanks to the large population size and aging trend, leading to increasing nutritional needs. Segments such as plant milk, adult nutrition, probiotic supplements or high-protein lines are forecast to grow better than the general average, while traditional industries continue to maintain stable growth.

Vinamilk said it will continue to invest in production and distribution systems, expand the scale of the cow herd and improve management capacity to strengthen the foundation for sustainable growth in the coming years.