Colusa - Miliket Food Company (Comifood) reported a pre-tax profit of 26 billion VND, an 11% decrease from the previous year, missing its target of 29 billion VND. This marks the lowest profit in four years, or eight years if excluding 2021's results impacted by the pandemic. The primary reason for this decline was an additional 6 billion VND land lease payment for the 2015-2020 period.

Despite the profit decline, Comifood recorded an 8% increase in revenue last year compared to the same period, reaching over 800 billion VND, its highest ever. Most of this revenue came from the domestic market, with only about 90 billion VND from exports.

Despite intense competition, the company's production and sales steadily grew. This growth was driven by marketing efforts that evoked the nostalgic "two-shrimp" brand, new sales channels, and a diversified product portfolio. Comifood maintains a stable position in niche segments, particularly traditional distribution channels like markets and eateries.

Last year, soaring raw material prices reduced the gross profit margin to below 27%. This means for every 100 VND in revenue, the company earned approximately 27 VND before deducting selling expenses, employee salaries, and other costs.

Colusa - Miliket owns the "two-shrimp" instant noodle brand. This brand has been in the market since before 1975, with its kraft paper packaging popular among consumers, at one point almost monopolizing the domestic market. A mergers and acquisitions consulting firm noted that the company's greatest value lies in its nostalgic brand, deeply rooted in the memories of many generations, fostering trust and loyalty from a specific customer base.

Commenting on last year's business performance, Tran Hoang Ngan, General Director of Comifood, stated that the company's production capacity had reached its maximum. While competitors consistently expand their scale, Comifood often had to decline orders.

The main reason for this limitation is that the company's sole factory in Thu Duc, TP HCM, is operating at full capacity and cannot increase output further.

Workers produce instant noodles at Colusa - Miliket Food Company in Thu Duc, 3/2025. *Photo: Quynh Tran*.

At an extraordinary shareholder meeting in late March, Ngan emphasized the urgent need to build a new factory. The company had this initiative in mind since the 2018-2022 period but has only recently pushed for its implementation. Moving forward, the company is also considering building a factory in the North to optimize transportation costs and increase market share.

The new factory represents a total investment of approximately 800-900 billion VND. It will have a designed capacity of about 49,000 tons of products annually, including: noodles, pho, hu tieu, and spices. Ngan stated, "The new factory is expected to meet growth demands for at least three years, while also optimizing operating, maintenance, and labor costs compared to current levels."

To accelerate implementation, the company recently finalized a plan to acquire a business in Giang Dien Industrial Park, Dong Nai, thereby indirectly gaining ownership of a nearly 4-hectare land plot. This transaction is estimated at approximately 200 billion VND.

According to management, inheriting an existing legal entity and project will shorten administrative procedures by 6-12 months. Additionally, the company gains an advantage in collateral for bank loans.

As of late last year, the company held assets valued at approximately 300 billion VND and a chartered capital of 48 billion VND. Comifood recently approved a plan to issue 9.6 million shares to existing shareholders, tripling its chartered capital to 144 billion VND.

Phuong Dong