Investors pump nearly $1m into SCC

Saigon Cosmetics Corporation (SCC) has attracted VNĐ 二 二 billion (US$ 九 四0,000) from two new shareholders to support growth as competition heats up in the domestic cosmetics market.— Photo theleader.vn

HÀ NỘI — Saigon Cosmetics Corporation (SCC) has attracted VNĐ 二 二 billion (US$ 九 四0,000) from two new shareholders to support growth as competition heats up in the domestic cosmetics market.

For the first time in the  一0 years since it became a public company, the Saigon Cosmetics Corporation (SCC) has announced two strategic investors are buying over  一 million shares more than a month after launching private offerings. They are Ho Chi Minh City Securities Corporation (HSC) and Ngô Hùng Dũng.

Of these, HSC has registered to buy more than  八 四 二,000 shares limited transfer in a year, holding  八. 八 七 per cent of SCC’s capital after the issuance. Meanwhile, Ngô Hùng Dũng has registered to buy more than  一 九 四,000 shares, holding  二.0 五 per cent of the capital.

With the price of VNĐ 二 一,000 per share, SCC has expected to earn VNĐ 二 二 billion. The money will be invested to buy machinery and equipment, upgrade the factory and develop a system of  一0 new design shops in HCM City and Hà Nội.

This is the first time the corporation has invited a financial institution to join SCC as a major shareholder.

On December  二 九,  二0 一 七, the Saigon Trading Corporation (Satra) sold its  七. 三 per cent of shares at SCC. The remaining major shareholders of SCC include the Board of Directors, the Control Board, the foreign organisation and the employees.

Recently, SCC has recovered its business. In  二0 一 七, it gained a year-on-year increase in revenue of  一 九 per cent to VNĐ 三 三 三 billion and growth in profit to VNĐ 一 四 九 billion from perfume with the famous brand of Miss Saigon.

Last year, SCC’s net profit was posted at VNĐ 三 八 billion, nearly doubling in  二0 一 六. This was the highest profit recorded since the company’s equitisation.

However, its business result is small compared with the demand of the domestic cosmetics market at $ 二. 二 billion by  二0 二0.

Now, foreign brands account for  九0 per cent of the local cosmetics market, including L’Oreal, Ohui, Whoo, The Body Shop, The Faceshop and Shiseido.

In addition, SCC has faced competition with new foreign brands from Thailand and South Korea and other local companies, as well as unfair competition from counterfeit and low quality products in the market, reported theleader.vn online newspaper.

With the fierce competition in business, SCC has changed its business strategy to focus on building its own showroom system and researching natural products.

Before  二00 六, SCC focused on export cosmetic export products, accounting for  六0 per cent of its total sales. Now, the domestic market, with the major retail channel being agents and supermarkets, has contributed more than  八 六 per cent to its total revenue.

Last year, the company developed more than  一00 new products such as shampoo, hand wash and sprays as well as a new design for Miss Vietnam perfume. — VNS