Revenues have been rising for three years for state-owned Vinataba, but its profits have fallen off the cliff.
Cigarettes of many brands, with Vinataba on the bottom right, for sale on a street in Hanoi. Photo by Shutterstock/Asia Images.
The Vietnam National Tobacco Corporation (Vinataba) has reported average sales growth of 2.2 percent a year since 2016 as it moves towards mid-level products. Sales grew from 3.6 million packs in 2016 to 4.1 million packs in 2018.
Revenues last year were VND19.63 trillion ($845.6 million), up 4.58 percent. After-tax profits plummeted 23 percent to VND1.25 trillion ($53.6 million) as income from financial activities fell sharply.
In a separate consolidated report issued the same week, the company management said frequent media campaigns aimed at raising awareness of the harm caused by tobacco are affecting consumer habits and sales.
It expects revenues to fall by 3 percent this year as a result to VND20 trillion ($865 million) from VND20.63 trillion ($892 million) last year.
The company is also in the property, farming, garments, and travel businesses, and has 11 subsidiaries and six joint ventures.
Vintataba is a wholly state-owned enterprise run by sovereign fund State Capital Investment Corporation, which manages the government’s business investments.