Vinamilk lowers '09 net profit target by 3.5 percent

Vietnam's biggest dairy firm Vinamilk has lowered its target for net profit in 2009 by 3.5 percent to 1.44 trillion dong (US$82.5 million) due to increasing costs.

Vinamilk said higher electricity costs, estimated to rise 9 percent from 2008 after the government hiked power prices from March, would affect its earnings.

The Ho Chi Minh City-based firm forecast revenues this year would rise 10 percent from 2008 to 9.22 trillion dong, up from a previous forecast in January of 9.02 trillion dong, Vinamilk said in a 2009 business plan report seen on Wednesday.

The company, which commands about 37 percent of Vietnam's dairy market, aims to pay a cash dividend of 3,000 dong per share in 2009.

Shares in Vinamilk rose 3.9 percent to close at 79,500 dong on Wednesday (Mar 11).

US$1 = VND17,435 (Mar 18)