IDP Q1 2026 Net Profit Surges 130% to VND 244B, Hits 35% of Full-Year Target

Overview

International Milk Lof (IDP) reported a 130% year-on-year surge in Q1 2026 net profit to VND 244 billion, achieving 35% of its full-year profit target. Revenue grew modestly by 4% to VND 1,900 billion, while cost controls boosted margins. The company also outlined dividend plans and progress on its Binh Duong expansion project.

Key Facts

• Q1 2026 net profit: VND 244 billion, up 130% YoY (from ~VND 106 billion in Q1 2025).
• Q1 2026 revenue: VND 1,900 billion, up 4% YoY.
• Full-year 2026 profit target: VND 700 billion (nearly 3x 2025).
• Full-year 2026 revenue target: VND 8,300 billion (+11.7% YoY).
• Q1 results achieved 23% of revenue target and 35% of profit target.
• Total assets at end-March 2026: ~VND 7,800 billion; cash and equivalents ~VND 1,900 billion.
• Retained earnings: ~VND 1,864 billion.
• 2025 dividend plan: 50-80% of par value; 2026 dividend plan: 20-80%.
• Binh Duong project investment: VND 2,800 billion (VND 300 billion equity, VND 2,500 billion debt).

What Happened

International Milk Lof (IDP) released its Q1 2026 financial statements, showing net profit of VND 244 billion, a 130% increase from the same period last year. Revenue rose only 4% to VND 1,900 billion, but selling and administrative expenses declined sharply, driving the profit surge. The company attributed the cost improvements to operational efficiencies.

At its annual general meeting, shareholders approved a 2025 dividend of 50-80% and a 2026 dividend of 20-80%, depending on performance. The meeting also authorized the board to adjust the investment plan for the Binh Duong branch project, which has a total investment of VND 2,800 billion. The project, located in Bau Bang Industrial Park, aims to process milk and dairy products, as well as non-alcoholic beverages.

Market Context

IDP shares trade on HOSE. The stock has been supported by strong earnings momentum and a high dividend policy. The Q1 profit beat reinforces the company’s turnaround trajectory after a period of margin compression. The dairy sector in Vietnam remains competitive, but IDP’s focus on cost control and its established brands (Kun, LOF Ba Vi, Malto) provide a buffer. The company’s cash position of VND 1,900 billion and retained earnings of VND 1,864 billion offer financial flexibility.

Strategic Significance

The Q1 results demonstrate IDP’s ability to expand margins even with modest revenue growth, a key factor for long-term profitability. The high dividend payout signals management’s confidence in cash flow generation. The Binh Duong project, once operational, could add significant capacity, but the heavy reliance on debt (VND 2,500 billion) introduces execution and financial risk. Investors should monitor the project’s progress and the company’s ability to maintain cost discipline.

What to Watch

• Q2 2026 earnings release to see if profit growth is sustainable.
• Updates on the Binh Duong project timeline and capital deployment.
• Dividend payment schedule for 2025 and 2026.
• Any changes in selling and administrative expense trends.
• Competitor moves in the dairy sector that could pressure revenue growth.