Foodstuff producer Kido Joint Stock Company (KDC) plans to buy 26 million shares at no more than VNĐ30,000 each, announced a document of the firm's shareholder meeting. Kido Group JSC, said it will continue to buyback treasury shares, in accordance with the Resolution of the Extraordinary Shareholders Meeting dated December 1, 2014, which says Kido will buyback 30 per cent of total issued shares, equivalent to nearly 77 million shares.
To date, Kido has bought 51 million shares or 19.87 per cent of issued shares. So it will buyback the last treasury shares to fulfil the target.
The firm targeted net sales of VNĐ1.8 trillion, down 43 per cent from 2015, and a before tax profit of VNĐ1.5 trillion, down 71.5 per cent from 2015. It also expected to pay 14 per cent of the 2015 dividend rate in cash and planned a cash dividend rate in 2016 of 16 per cent.
The company attributed the downturn to its investments in new business segments, like cooking oil, instant noodles, and other foodstuffs.
During the quarter the company did not earn a big contribution from its snack business, either, since it had sold 80 per cent of it to Mondelez earlier last year.
Yesterday KDC shares rose 5 per cent to end at VNĐ27,300 on the HCM Stock Exchange