Interfood Joint Stock Company (HOSE: IFS), the owner of the popular Wonderfarm herbal tea brand in Vietnam, has reported strong financial recovery in recent years after going through a period of losses from 2008 to 2015. The company has fully distributed its profits to shareholders as dividends, fueling its stock price to hit an all-time historical high.

Established in 1991 as a canned food and seafood processing company for export, IFS signed a brand licensing deal with Wonderfarm Biscuits and Confectionery in 2005 to launch herbal tea and other beverages under the Wonderfarm brand domestically. The Wonderfarm herbal tea quickly became a best-seller in Vietnam, cementing IFS's position in the beverage market.

IFS was converted to a joint stock company in August 2005 and made its debut on the UPCOM stock exchange in late 2006. However, its stock listing joy was short-lived as some of its biscuit products in 2008 were found to contain excessive levels of melamine, triggering losses for the company that year and continued losses thereafter.

In 2010, IFS's debts swelled to over VND600 billion, nearly equaling its total assets. Its shares were subsequently delisted at the end of 2012 amidst the prolonged difficult times. In 2011, IFS's major Malaysian shareholders divested their entire stakes to Kirin Holdings, a large Japanese food and beverage conglomerate.

Since taking over, Kirin has undertaken various restructuring efforts to improve IFS's debt structure and explore new product developments and market targets. After weathering a severe crisis period from 2008-2015 with 7 out of 8 consecutive loss-making years, IFS staged a turnaround under Kirin's management from 2016 onwards through strong cost controls and strategic innovations.

IFS relisted on the Unlisted Public Company Market (UPCoM) in early November 2016. Its stock price has climbed steadily since, reaching a record high of VND35,000 per share currently, up over 16% year-to-date. This valuation expansion is backed by robust financial performance.

In 2023, IFS reported record annual revenue of nearly VND1.9 trillion, up 9% year-on-year. Wonderfarm herbal tea continues to be the key driver, contributing close to VND1.65 trillion or 88% of total sales. IFS swung back to net profit of VND209 billion in 2023, rising 34% compared to the previous year.

As of end-2023, IFS's total assets increased 19% to VND1.46 trillion, with cash and cash equivalents amounting to VND965 billion or 66% of the total. Shareholders' equity made up a robust 86% of the capital structure. Notably, the company has been debt-free since fully paying down its obligations in previous years.

Following the full wipe-out of accumulated losses in 2021, IFS has distributed all of its retained earnings as dividends to shareholders. In 2022, it declared a cash dividend yield of 17.8%, equivalent to over VND155 billion, which mainly benefited its majority owner Kirin Holdings Singapore that owns nearly 96% of IFS.

Looking ahead, IFS is well-positioned to sustain its upturn given Wonderfarm tea's leading market share and the growth opportunities from Kirin's diverse product portfolio under licensing in Vietnam. Barring any unexpected shocks, investors can expect IFS's impressive turnaround journey to continue fueling further share price appreciation over the long run.