In August 2017, on the occasion of vacation with my family at the resort in Hoi An, I was pleasantly surprised to see bottles of mineral water branded Vikoda and Danh Thanh lined up in the refrigerator for guests. Before that, I used to only see other branded mineral water bottles in hotels and resorts, while the brand Danh Thanh and Vikoda seemed to appear only at popular grocery stores or common supermarkets.In August 2017, on the occasion of vacation with my family at the resort in Hoi An, I was pleasantly surprised to see bottles of mineral water branded Vikoda and Danh Thanh lined up in the refrigerator for guests. Before that, I used to only see other branded mineral water bottles in hotels and resorts, while the brand Danh Thanh and Vikoda seemed to appear only at popular grocery stores or common supermarkets.

That wonderment is the early result of a strategic transformation. By now, it will not be astounding to see mineral water Danh Thanh and Vikoda at high-end conferences, luxury hotels and resorts, besides showing up at supermarkets and restaurants.That status transformation is due to the company’s determination to change when positioning the product line with competitive advantage, high class, in line with the trend of using clean, environmentally friendly products for consumers use.By means of its modern and friendly product design, especially the Vikoda product line that uses glass bottles instead of plastic ones, the company is showing its determination to become a socially responsible business enterprise.

Market success inevitably leads to success in financial results. Revenue in 2019 reached VND 290 billion, 34% higher than the previous year and more than double compared to the previous 5 years. The revenue growth reflects the strategy of structuring and repositioning products and markets that have moved in the right direction. That, along with solutions to improve management efficiency, especially inventory management and sales, helped the company achieve a pre-tax profit of VND 20.3 billion in 2019, many times higher than that of the previous year. The number was just barely lossless for the previous two years. The restructuring process has initially been successful.

Even so, with group and company leadership, Vikoda is still far from reaching its potential. With the advantage of high pH mineral water source - very rare in the Vietnamese market and very suitable for Vietnamese consumers who often eat a lot of acid-forming substances - along with investment in mining technology and production lines. products, the company is confident that sales can reach more than 800 billion within the next 5 years. In 2020, the company sets a sales target of 352.57 billion, 21.5% higher than in 2019 and pre-tax profit of 28.18 billion, up 39%.

Along with ambitious goals is a specific strategy and plan to accomplish. At the AGM at the end of June, Vikoda's management recognized the importance of the post-restructuring implementation process. In this process, it is not the big investments but the concentration of resources on the main product, mineral water, with the research and improvement of the product packaging design in accordance with the market demand; strengthen brand promotion; new product development; expanding distribution channels into the system of supermarkets, resorts and resorts; maintain the main consumption market in the Central region, the Highland and expand the market share to the West, key channels in Ho Chi Minh City, etc. are the growth factors.

If the set plans are completed, or at least the post-restructuring growth of 2019 continues in the coming years, it is not difficult to imagine the business value. According to the analysis of the group's financial strategy department, if the revenue in the next 5 years reaches 800 billion with revenue growth from 16.5% to 24.2% depending on the business cycle and then a steady growth. 4% annually, the enterprise value according to the cash flow method for owners can reach nearly 900 billion dong, or more than 72,000 dong/share under current market risk conditions and cost and cost ratio. similar operating costs in 2019.

Quach Manh Hao