Vinamilk H1 profit up 21 pct on strong sales

Vietnam's top dairy firm, Vinamilk VNM.HM, reported a 21% rise in first-half net profit as robust exports and local demand boosted sales.

The company, the largest on the country's main stock exchange .VNI with a market value of $1.2 billion, said on Friday its six-month net profit accounted for 60.8% of its profit target for the full year.

"The revenue and profit growth are in place thanks to a growth in both exports and domestic sales," Vinamilk's Deputy General Director Ngo Thi Thu Trang said in a statement sent to Reuters.

The Ho Chi Minh City-based company reported a net profit of 693 billion dong ($42 million) for the first six months of 2008 on a 27% rise in revenue to 3.96 trillion dong .

Trang said Vinamilk's exports soared 149 percent while domestic sales rose 23%.

On Friday, the company's shares closed up 2.6 percent at 118,000 dong in line with a strong broader market.

Vinamilk has previously projected net profit would rise more than 18% this year to 1.14 trillion dong, while revenue would jump 23% to 8.2 trillion dong.

Trong said Vinamilk was retaining its forecast.

Vietnam has been battling double-digit inflation since last November, with consumer prices in June rising nearly 27% from the same month last year.

Vinamilk plans to list nearly 8.8 million shares overseas this year, increasing its share capital by 5% to 1.84 trillion dong. ($1=16,513 dong) (Reuters)