Increasing demand for ice cream in Vietnam is serving up sweet results for the KIDO Group, as the Ho Chi Minh City-headquartered company reported a 21% increase in profits to VND 317 billion (approximately US $13.9 million) during the first quarter of this year. While overall frozen food product sales rose 23% compared to the same period in 2018, the ice cream segment surged 37.4%.
Total revenue during Q1 amounted to VND 1.5 trillion (US $67.9 million), down 7% year-on-year due to reduced cooking oil sales and decreasing prices. Revenues for its Tuong An soya oil brand declined by 22% to VND 840 billion (US $36.8 million), while sales of Vocarimex label edible oil plummeted 43% to VND 626 billion (US $27.4 million), according to a Vietnam News online dispatch.
Wel Yo brand yogurt sales also fell, due to growing competition. “Furthermore,” reported Vietnam News, “selling expenses increased by 27% mainly because of increased incentives for frozen product distributors to meet sales targets.”
Founded in 1993 and formerly known as Kinh Do Corporation, KIDO promotes itself as the “King of Frozen Sweets” in Vietnam. This is for good reason, as its Merino and Celano ice cream brands are market leaders nationwide. Its production of a wide assortment of treats at two factories range from single portion dairy ice cream cones and sticks and cones to cups and tubs. Its sales growth has outpaced rivals for a number of years.
Statistica estimates that the total market for ice cream in Vietnam will rise 8.9% to US $74 million in 2019. Per capita consumption, at 0.2 kg, remains low relative to Western countries.
In addition to ice cream, KIDO’s expanding line of frozen products features buns (bao) and balls stuffed with traditional fillings such as pork, quail eggs, custard, and red bean paste, as well as sausage and imported french fries from the Netherlands.