Vinacafe Bien Hoa (VCF) announced on 8/10 that it will distribute a 2024 cash dividend. The payout ratio is 480% of the par value, meaning each shareholder will receive 48,000 VND per share.

With over 256.7 million outstanding shares, the company will distribute nearly 1,276 billion VND. However, the majority of this dividend will go to the parent company, Masan Group (MSN). As of the end of July, Vinacafe Bien Hoa had 538 shareholders, with Masan Beverage (a subsidiary of Masan Consumer, under MSN) holding 98.78% of the capital.

Nguyen Dang Quang's consumer goods empire will therefore receive over 1,260 billion VND from this dividend. The remaining 15 billion VND will be distributed among 537 minority shareholders.

Vinacafe Bien Hoa products on supermarket shelves in TP HCM. Photo: Quynh Tran

Vinacafe Bien Hoa products on supermarket shelves in TP HCM. Photo: Quynh Tran

Vinacafe Bien Hoa regularly distributes dividends, often at high rates. In 2017, they paid a cash dividend of 66,000 VND per share. In 2019, 2020, 2021, and 2024, the dividend was around 24,000-25,000 VND.

VCF's consistent profitability since 2007, with profits in the hundreds of billions of VND, enables this dividend policy. Last year, they reported revenue of approximately 2,556 billion VND, an increase of nearly 9%, and a net profit of 446 billion VND, a slight decrease of nearly 1%.

In the first half of this year, Vinacafe Bien Hoa achieved revenue of nearly 1,309 billion VND and a net profit of over 249 billion VND, representing increases of 23% and 33% respectively. This additional profit brings the company's total accumulated profit to nearly 1,635 billion VND.

Vinacafe Bien Hoa originated from the Coronel coffee factory established in Dong Nai in 1968. The company operates three factories with a total capacity of over 4,000 tons per year. Their famous products include Vinacafe, the first instant coffee produced by Vietnamese people, and B'fast nutritional cereal.

In 2011, Masan Consumer acquired VCF. Since then, the company has expanded its beverage lines to include Wake-up coffee, Phil instant coffee, and Wake-up Coffee 247 energy drink. They also export to international markets such as China, the US, Canada, Taiwan, Japan, and South Korea.

VCF, Vinacafe Bien Hoa's stock code, is the highest-priced stock on the HoSE and second highest in the entire market, trailing only F88. At the opening of today's trading session, VCF hit its ceiling price of 358,400 VND per share, a more than 70% increase compared to the end of the year. However, trading volume is low, typically ranging from a few hundred to a few thousand shares per session due to its concentrated ownership structure.

With Masan Consumer holding 98.79% of VCF, the company currently doesn't meet the requirements for a public company. The 2024 Securities Law stipulates that a public company must have at least 10% of its voting shares held by at least 100 investors who are not major shareholders.

Tat Dat