Khanh Hoa Salanganes Nest Soft Drink Joint Stock Company: Outstanding dividend increase

Recently, Khanh Hoa Salanganes Nest Soft Drink Joint Stock Company (stock code SKV) has paid nearly VND 69 billion of dividends in 2022 (dividend reaches 29.8%). This has confirmed successful business results of the company after the Covid-19 pandemic.

Continous growth

The predecessor of Khanh Hoa Salanganes Nest Soft Drink Joint Stock Company is Dien Khanh Sanest One Member Company Limited, under the Khanh Hoa Salangane Nest Company. Since 2003, this factory officially came into operation and became the first factory of industrial production in the field of processing products of Khanh Hoa natural island bird's nest. By 2016, the company officially operated in the form of a joint stock company. In November 2017, SKV shares were officially traded on UPCoM.

Then, the enterprise has made great strides in production and business; its annual revenue has always remained above the threshold of VND 1,000 billion and has grown steadily. In 2017, the company achieved revenue of 1,015 billion VND; by 2019, revenue increased dramatically, reaching VND 2,148 billion. This is also the highest revenue since the company was equitized. In 2022, the socio-economic situation faced many difficulties after the Covid-19 pandemic, but the company still achieved revenue of VND 2,117 billion, up 21% compared to 2021. Although the revenue in 2022 was not the highest, but this was the year the business achieved a record profit, nearly VND 103 billion, up 29% compared to 2021, exceeding 14% of the revenue target and nearly 28% of the profit target.

Production line of Khanh Hoa Salanganes Nest Soft Drink Joint Stock Company

High dividends, rising stocks

Following the achievement in 2022, Khanh Hoa Salanganes Nest Soft Drink Joint Stock Company sets a target to increase revenue by 1.6% in 2023 and profit by 0.4% compared to 2022 (equivalent to revenue reaching VND 2,150 billion and profit of VND 103 billion).

By the end of the first quarter of 2023, Khanh Hoa Salanganes Nest Soft Drink Joint Stock Company has achieved revenue of more than 620 billion VND, up 13% over the same period and profit after tax reached nearly 30 billion VND, higher than 4 billion VND compared to the same period last year. With this result, the company has completed 29% of both revenue and profit after tax targets.

Trinh Thi Hong Van - Deputy General Director of Khanh Hoa Salanganes Nest Company, Chairman of the Board of Directors of Khanh Hoa Salanganes Nest Soft Drink Joint Stock Company said that the company has taken steps to grow. The strong performance in recent years is owing to the fact that the Board of Directors and Executive Board of the company have focused on production and business tasks, and proposed many solutions in the strategy to boost sales. In addition, the company has also proposed effective solutions to reduce inventory costs, selling expenses and business administration costs, so the profit after tax in 2022 increased spectacularly. In the coming time, the leaders and employees of Khanh Hoa Salanganes Nest Company commit to maintain internal solidarity; build, preserve and promote the noble values of the profession; ensure employment, income and welfare regimes for employees to increase further to successfully implement the Resolution of the Annual General Meeting of Shareholders in 2023, ensuring profits and dividends for shareholders, actively contributing to the local socio-economic development, building a strong Sanvinest Khanh Hoa brand in the domestic market and reaching out to the world.

Thanks to favorable business, Khanh Hoa Salanganes Nest Soft Drink Joint Stock Company has always paid a high dividend. In the years of 2019 - 2022, the enterprise maintained the dividend payout ratio at more than 20%. Most recently, SKV announced to pay a cash dividend in 2022 at 29.8% (this was the highest dividend rate of SKV since the first listing of UPCoM in 2017). With 23 million shares outstanding, SKV will spend about VND68.5 billion to pay dividends in this round.

Along with the superiority of profit margin and dividend payment, SKV stock increased strongly. In the context of the stock market going through many fluctuations, but SKV stock has still made a continuous uptrend since October 2022. By the beginning of June, 2023, the code SKV was trading at 31,600 VND/share, up 19% compared to the beginning of the year, thereby reaching the highest level in the past 18 months (from November 2021).

Dinh Lam

Translated by T.T