KDC, formerly known as Kinh Do Corporation and currently one of the leading food producers in Vietnam, said its after-tax profit in the second quarter was VND29 billion (US$1.25 million), bringing the six-month profit to VND47 billion (US$2 million), down 89% year-on-year, stated the group.
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One of the reasons behind a sharp decrease in KDC's profit was the one - off financial income in the first quarter in 2017 of VND531 billion (US$22.95 million) and the depreciation and amortization of goodwill resulting from the revaluation of Vietnam Vegetable Oils Industry Corporation (Vocarimex)'s assets after the consolidation of books in the January - June period.
Edible oil business has become KDC's main source of revenue since its acquisition of 51% stake in Vocarimex in May 2017. Specifically, revenue from the sale of this product reached VND5.53 trillion (US$239 million) in 2017, up 690% year-on-year, followed by frozen food, ice cream and instant noodles with VND1.49 trillion (US$64.4 million), up 6.9%.
KDC's biggest expense in the first half of 2018 was principal repayment of VND2.43 trillion (US$105 million), while interest payment reached VND77 billion (US$3.32 million). The group's short- and long-terms payables stood at VND1.94 trillion (US$83.8 million).
