Here’s everything to know about VPMilk, the owner of the ‘Mr. Park’ milk brand

During the 2016 – 2019 period, VPMilk reported profit only once – 67 million dong in 2016.

Brand creation via football sponsorship

The Vietnam Professional Milk Joint Stock Company (VPMilk) was established in July 2014, but it took two years for the company to officially launch its product lines of formula milk for babies and pregnant women under the brand names IQLac Pro and IQLac Pro Mom.

In March 2017, VPMilk caused a stir in the market when it pledged to sponsor Hoang Anh Gia Lai football club with VND 50 billion for the 2017 and 2018 seasons. This was an impressive level of sponsorship for the general level of Vietnamese football, not just at that time but also before and even now.

A year later, in April 2018, VPMilk continued to cooperate with the head coach of the Vietnam national football team Park Hang-seo, who officially became the exclusive brand ambassador for VPMilk.

On March 24, 2021, coach Park Hang Seo met with a representative of VPMilk, demonstrating his commitment to continue as the exclusive brand ambassador.

Before that, in the second half of 2020, VPMilk launched a condensed milk product with the brand “Mr. Park”. The image of the head coach of the Vietnam national football team was printed on the product’s packaging.

VPMilk has been quite successful in brand promotion campaigns. In addition to condensed milk, the company provides other products such as nutritional formula milk, ready-to-drink formula milk, fresh milk, yogurt, and a bird’s nest soft drink.

VietTimes data shows that in the period 2016 – 2019, VPMilk (the mother company) recorded growth in revenue, but the company only reported a one-time profit in 2016 with after-tax profit of only 67 million VND. In the following years, VPMilk reported losses with an accumulated loss after tax for three years amounting to nearly VND 82 billion.

In 2017 and 2018, VPMilk recorded net revenue of VND 141 billion and VND 210.3 billion, and reported after-tax losses of VND 39.3 billion and VND 31.4 billion, respectively.

In 2019, VPMilk’s net revenue reached VND 225.1 billion, up 7% over the previous year; after-tax losses fell to 11.1 billion dong.

The accumulated losses also eroded almost 100 billion dong of VPMilk’s charter capital. As of December 31, 2019, total assets of VPMilk reached VND 155.4 billion, and equity at VND 47.8 billion, down 7% and 16.7%, respectively, compared to the beginning of the year.

Who owns VPMilk?

As VietTimes has noted, VPMilk was established in July 2014. The head office is located at 21A, Quarter 2, Nguyen Thi Thap Street, District 7, in Ho Chi Minh City (known as VPMilk Building). The chair of the Board of Directors and the legal representative is Ms. Nguyen Thi Thu Phuong (born 1977).

VPMilk owner Nguyen Thi Thu Phuong

In addition to VPMilk, Ms. Phuong is the legal representative of other enterprises such as Bao Lam Mineral One Member Company Limited, Bao Lam Trading Company Limited, Kim Phat Production – Trading Co., Ltd., and Nam Duong Investment Joint Stock Company.

Nam Duong Company was established in June 2006. The  head office address is at R4-93 Hung Gia 2, Phu My Hung, District 7, in Ho Chi Minh City.

According to the introduction on its homepage, Nam Duong’s main business activities are in the fields of retail distribution, logistics, communications and manufacturing. The company is a partner of many large enterprises such as Namyang Dairy Products Group, Nanum CnC Company, MBC Television Studio (Korea), Boditech Company (Boditech Med, Inc.), and Traphaco Pharmaceutical JSC.

Similar to VPMilk, in the 2016 – 2019 period, Nam Duong (the mother company) continuously reported losses. The company also likely reported losses from previous years because the equity at the end of 2016 was negative.

In 2016 and 2017, Nam Duong recorded net revenue of VND 282.9 billion and VND 85.6 billion, respectively, and after-tax losses of VND 30.7 billion and VND 20.2 billion.

Entering 2019, Nam Duong’s net revenue reached VND 191 billion, up 71.4% over the previous year; after-tax losses were 10.2 billion dong, while in 2018 it lost 25.2 billion dong.

As of December 31, 2019, Nam Duong’s total assets had reached VND 325.2 billion, down 10% compared to the beginning of the year; and equity was at a negative 81.5 billion dong.

In June 2018, the owner of VPMilk, Ms. Nguyen Thi Thu Phuong, mortgaged more than 3.33 million shares of Hoang Anh Gia Lai JSC (Stock code: HAG) at a private bank.

By Viettimes

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Source: Vietnam Insider