April 8, 2008

Vinamilk projects 18-percent hike in 2008 profit

Vietnam Dairy Products Joint-Stock Co., or Vinamilk, expects an 18 percent rise in profit this year due to increased demand for products including formula milk, cheese and ice-cream.

The country's biggest manufacturer of dairy products is projecting a jump of its net to VND1.14 trillion (US$71 million) from VND963 billion (US$59.78 million) last year.

Sales are to rise 23 percent to VND8.2 trillion (US$509 million) from VND6.68 trillion (US$414.67 million) in 2007, the conglomerate said during the weekend.

The profit increase are foreseen despite the country's record level inflation rate in more than a decade as dairy products are already seen as necessities in Vietnamese household.

Hoang Xuan Quyen, chief analyst of Tan Viet Securities Inc. in Hanoi, said dairy products would not be affected by inflation like other products and thus demand for milk products wil remain strong and would likely surge further this year.