VNM - Domestic sales volume continues to strengthen in Q3 2016 - Earnings Flash

Financial statements show volume growth in the domestic market accelerated to 21% in Q3 2016 vs Q3 2015 compared to 19.5% in H1 2016 vs H1 2015, which is impressive amid sluggish industry growth in the urban cities. On the other hand, unlike our expectation, domestic GPM did not show further margin expansion in Q3 2016, which we attribute to either more promotion activities (e.g. buy four, get one free) or higher input prices than we previously projected.