During the period 2016 – 2019, VPMilk only reported profit once – 67 million dong in 2016.
Brand creation through football sponsorship
The Vietnam Professional Milk Joint Stock Company (VPMilk) was founded in July 2014, but it took two years for the company to officially launch its formula milk product lines for babies and pregnant women under the brand names IQLac Pro and IQLac Pro Mom.
In March 2017, VPMilk caused a stir in the market when it pledged to sponsor Hoang Anh Gia Lai football club with VND 50 billion for the 2017 and 2018 seasons. This was an impressive level of sponsorship for the general level of Vietnamese football, not only then, but also before and even now.
A year later, in April 2018, VPMilk continued to work with Vietnam national football team head coach Park Hang-seo, who officially became VPMilk’s exclusive brand ambassador.
On March 24, 2021, Coach Park Hang Seo met with a VPMilk representative, demonstrating his commitment to continue as an exclusive brand ambassador.
Before that, in the second half of 2020, VPMilk launched a condensed milk product with the brand “Mr. Park”. The product packaging showed the image of the head coach of the Vietnam national football team.
VPMilk has been quite successful in brand promotion campaigns. In addition to condensed milk, the company also supplies other products such as formula milk, ready-to-use formula milk, fresh milk, yogurt and a bird’s nest soft drink.
Data from VietTimes shows that VPMilk (the parent company) posted revenue growth in the 2016-2019 period, but that the company reported only one-time profit in 2016 with an after-tax profit of just VND 67 million. In subsequent years, VPMilk reported losses with a three-year cumulative after-tax loss of nearly VND 82 billion.
In 2017 and 2018, VPMilk posted net sales of VND 141 billion and VND 210.3 billion, and reported after-tax losses of VND 39.3 billion and VND 31.4 billion, respectively.
In 2019, VPMilk’s net sales reached VND 225.1 billion, up 7% from the previous year; After-tax losses fell to 11.1 billion dong.
The accumulated losses have also eroded nearly 100 billion dong of VPMilk’s charter capital. As of December 31, 2019, VPMilk’s total assets were VND 155.4 billion, and shareholders’ equity at VND 47.8 billion, down 7% and 16.7%, respectively, compared to the beginning of the year.
Who owns VPMilk?
As VietTimes has noted, VPMilk was established in July 2014. Its headquarters are located at 21A, Quarter 2, Nguyen Thi Thap Street, District 7, in Ho Chi Minh City (known as VPMilk Building). The Chairman of the Board of Directors and its legal representative is Ms. Nguyen Thi Thu Phuong (born 1977).
VPMilk owner Nguyen Thi Thu Phuong
Besides VPMilk, Ms. Phuong is the legal representative of other enterprises such as Bao Lam Mineral One Member Company Limited, Bao Lam Trading Company Limited, Kim Phat Production – Trading Co., Ltd. and Nam Duong Investment Joint Stock Company.
Nam Duong Company was established in June 2006. The head office address is R4-93 Hung Gia 2, Phu My Hung, District 7, Ho Chi Minh City.
According to the home page introduction, Nam Duong’s main business activities are in retail, distribution, logistics, communications and manufacturing. The company is a partner of many large enterprises such as Namyang Dairy Products Group, Nanum CnC Company, MBC Television Studio (Korea), Boditech Company (Boditech Med, Inc.) and Traphaco Pharmaceutical JSC.
Similar to VPMilk, Nam Duong (the parent company) reported continuous losses over the 2016-2019 period. The company probably also reported losses from prior years as equity was negative at the end of 2016.
In 2016 and 2017, Nam Duong had net sales of VND 282.9 billion and VND 85.6 billion, respectively, and after-tax losses of VND 30.7 billion and VND 20.2 billion.
As of 2019, Nam Duong’s net sales reached VND 191 billion, up 71.4% from the previous year; The after-tax losses amounted to 10.2 billion dong, while it lost 25.2 billion dong in 2018.
As of December 31, 2019, Nam Duong’s total assets were VND 325.2 billion, down 10% from the beginning of the year; and shareholders’ equity was negative 81.5 billion dong.
In June 2018, the owner of VPMilk, Ms. Nguyen Thi Thu Phuong, mortgaged more than 3.33 million shares of Hoang Anh Gia Lai JSC (Stock Code: HAG) with a private bank.
Through Viettimes
