October 29, 2008
Vietnam's Hanoi Milk suffer losses due to melamine scandal
Vietnam's third largest dairy producer suffers big drop in revenue as certain products found to have melamine are recalled.
Managing director of the Hanoi-based film, Nguyen Tuan Anh said revenue in September fell 70 percent and revenue this month would fall even further.
Hanoi Milk is Vietnam's third-largest dairy product company. Shares in Hanoi Milk lost 7.55 percent to close at VND 9,800 on Monday, 27 October 2008, compared to a fall of 5.73 percent in the Hanoi exchange index.
Anh declined to provide any figures but in a statement via the exchange on Monday, 27 October 2008, Hanoi Milk said its net profit in the third quarter of this year to the end of September plunged 79 percent from the second quarter to VND 822 million (US$50,000).
Vinamilk, Vietnam's second-largest listed company and the country's top dairy producer, reported a 35.5 percent jump in proft for the first nine months of this year, reflecting strong demand at home and soaring exports.
Analysts said Vinamilk has not been affected by a crisis in consumer confidence in milk products after a tainted milk scandal in China.
Hanoi Milk said it had recalled several products including sweetened yoghurt earlier this month after tests found melamine in 11 input materials and products.
Anh said Hanoi Milk was operating at less than half of its capacity but the company expected full-scale output again by the end of the year and that purchases of melamine-detecting equipments were done to ensure product safety for the benefit of the consumers.