Phân tích tình hình tài chính công ty cổ phần sữa việt nam vinamilk e

The process of foundation and development: International transaction name: Vietnam Diary Products Joint Stock Company Headquarters: 10, Tan Trao Street, Tan Phu Ward, No 7 District, Ho C

PHÂN TÍCH TÌNH HÌNH TÀI CHÍNH CÔNG TY CỔ PHẦN SỮA VIỆT NAM

VINAMILK

CONTENT

INTRODUCTION 3

1 OVERVIEW OF THE CORPORATION 4

1.1 The process of foundation and development: 4

1.2 Main business fields of the corporation: 8

1.3 Production technology of several products 8

1.4 Management Structure: 10

2 ANALYSE FINANCIAL SITUATION OF THE CORPORATE: 13

2.2 Analyse financial effieciency: 15

2.2.1 Profitability indexes: 15

2.2.2 Indicators of asset management capacities: 17

2.3 Solvency indicators: 18

2.3.1 Solvency indicators: 19

2.3.2 Indicators of loan management: 19

2.4 Combined analysis of effects and risks: 20

2.4.1 First Dupont equation: Return on asset (ROA) 20

2.4.2 Second Dupont equation: Return on equity (ROE) 20

2.4.3 Dupont Map 21

2.4.4 Leverages: 22

In recent years, world economy in general and Vietnam’s in particular have been facing upwith many instable factors The non-stop increase of materials and fuels prices continues tolead to high inflation The domestic economy has experienced a difficult period in 2012.Thousands of businesses go bankrupt, the banking system is in crisis, banking interestschange constantly The weakening of the whole economy affects to businesses and workers.Besides, Vietnamese enterprises are facing with increasingly fierce competition comingfrom foreign firms who have advantages of capitals, management techniques and scientifictechnologies In this context, businesses which have improper strategies, weak operationalcapacity and weak financial capacity will be left behind or go bankruptcy Corporatefinancial analysis is always necessary when it indicates the health of the business and help

to regulate resources properly Not only owners’ business but also investors need financialanalysis so that they can avoid unexpected risks

Vinamilk is a leading corporation in producing milk and dairy products Up to now,Vinamilk accounts for about 39% national market share The company now has over 240distributors and a nationwide system with more than 140,000 points of sale Vinamilkproducts are sold in all supermarket system all over the nation

Our group selects Vinamilk corporation to analyse

1 OVERVIEW OF THE CORPORATION

1.1 The process of foundation and development:

International transaction name: Vietnam Diary Products Joint Stock Company

Headquarters: 10, Tan Trao Street, Tan Phu Ward, No 7 District, Ho Chi Minh city

Structure: 1 office and 17 subsidiaries

Personnel: 4.500 people

Main function: Producing milk and Diary products

VINAMILK is the biggest milk producer and provider in Vietnam According toEuromonitor, VINAMILK accounts for 39% market of soft drinks, milk, yoghurt, freshmilk, condensed milk, soy milk and fruit juice The company has built an extensive network

in Vietnam and had a strong brand In 2011, Vinamilk is one of the most powerful brands inVietnam recognized by the Ministry of Industry and Trade From 2005 to the present, theproducts of company are always on the list of "high-quality Vietnamese goods" voted byconsumers

In 3/1992, The United Enterprises of Milk Coffee Cookies and Candies I is formally

renamed Vietnam Diary Company and comes under the direct management of the Ministry

of Light Industry The company starts focusing on the manufacturing and processing milk and dairy products

In 1994, Vietnam Diary Company (VINAMILK) builds one more dairy factory in Hanoi to cater the market in the northern region, increasing the number of factories to 4:

Thong Nhat Diary Factory

Truong Tho Diary Factory

Dielac Diary Factory

Hanoi Dairy Factory

In 11/2003, the company is converted into joint stock company named Vietnam DiaryProducts Joint Stock Company (VINAMILK)

From 2005 to Present:

Converting into a joint-stock company has led to excellent results in doing business.Ordinance targets of the State exceed in comparison with previous year before equitizationprocess contributes significantly to the sublimation of the economy: total revenue increases

by 188%; net profit after tax goes up 5.2 times; Profit after tax / equity ratio increases by75%; payments to the State budget increases 4.6 times; billions are invested to modernizemachines and technology; exports reach 444.7 million USD; annual average productionreaches over 560 thousand tons; fresh milk collection has increased annually from 10 - 17%

on volume and value; total equity increases annually and reaches over 11 trillion in 2012;average income of workers increases by 68% The factories always adhere to the productionprinciple which bases on the needs of market to adjust plans properly VINAMILK also tries

to implement strict management, improve product quality, diversify product categories, givepriorities to products which have competitive advantages, high values and market stabilities.Besides, the company practices saving on all stages of production process, especially onfuels and materials On doing business: the company implement a strategy to dominate 75%national market share; expanding markets in which domestic market takes central role;Locating outlets in all over the country with the network of 183 distributors, 94,000 points

of sales in 64/64 provinces and cities Marketing innovation and effective marketingactivities are researched carefully The company actively searches for foreign relations,looking for new exporting markets and maintaining traditional markets at the same time

The company has formed domestic raw material areas by building 5 dairy farms: TuyenQuang dairy farms (2007); Nghe An dairy Farm (2009); Thanh Hoa dairy farms (2010) ;Binh Dinh dairy farm (2010); Lam Dong dairy farm (2011); with 5900 cows in total.Support and encourage farmers by purchasing milk products with high price (higher thanthe world price), accepting lower profits from processing stage (15 - 25 billion every year)

to offset high purchasing prices of milk Moreover, VINAMILK provides technical supports

of preliminary processing, storage and preservation of raw milk to farmers in 2005, thecompany purchases 92,500 tonnes of milk; 5 years later (2010), the volume of milkpurchased goes up to 127,000 tonnes (increases by 38%) 550,000 tons of milk which areworth over 2,000 billion are bought by company in 5 years, an average annual increase of10-20 % on volume and value, creating favourable for the increase of national dairy herdfrom 104,000 (2005) to over 130,000 (2010) The company strictly implement regulations

on fire prevention, safety of production facilities and assets Effective implementation ISOand HACCP certification, building wastewater treatment system at all processing bases;coordinate with local authorities to improve the natural environment In 2008-2009 dairyfactories: Thong Nhat, Truong Tho, Saigon are awarded as “Green Business” by theMinistry of Natural Resources and Environment for achievements in environmentalprotection The company has opened the gateway towards large potential markets of North

America, the Middle East, Asia, America, Australia, Canada, France, Russia, Germany,Poland, Czech Republic, China , the Middle East, Asia, Laos and Cambodia.

By making use of equity and other capitals, the company can afford essential needs,especially on doing business programs effectively In 5 years, the company has investedabout 4,500 billion VND on modernizing machines and equipments, productiontechnologies and building 2 new processing factories and 2 subsidiaries: Lam Son DiaryFactory (12/2005); Vietnam Beverage Factory (2010), Can Tho subsidiary (1998); HanoiLogistics Company (2010) At the same time, VINAMILK is promoting the construction of

2 modern fully-automated Megacenter in the North (Tien Son) and in the South (BinhDuong), 2 factories: Dielac Powdered Milk 2 in Binh Duong and Da Nang Diary Factory.these factories are expected to go into operation in late 2012 Many modern refined linesoriginating from advanced industrial countries like the U.S., Denmark, Italy, Germany, theNetherlands have been installed by leading experts 300 kinds of high quality products arelaunched afterwards Giving autonomy in production for membered factories to make fulluse of capacities is proving efficiency in new era

Regarding human resources, the company has recruited more than 50 children of internalofficials through the examination of dairy technology to build up future legacy forces Morethan 100 scientists, engineers are sent to acquire domestic short-term technologies; 12people attend the Director training courses ;

Over the years, the company participates actively and regularly in social activities asThankfulness activities ; Taking care of 20 Vietnamese heroic Mothers in 2 provinces ofQuang Nam and Ben Tre; Poverty alleviation; Searching and supporting people in flood-affected areas, Contributing to the funds: For dear Truong Sa; Stone contribution to buildTruong Sa; Poor Patient Support ,Victims of Agent Orange; Young talent, Rising Vietnam,Funds against children malnutrition ; Scholarship for children in flooded areas Grants

1.2 Main business fields of the corporation:

Production and sales of cookies, soy milk, canned milk, powdered milk; providingtechnological foods, accessories, chemicals which support agricultural activities However,diary products are mainly manufactured

1.3 Production Technology of several products

For the target of accelerating growth, the company applies new technologies, installsmodern processing equipment, increases processing capacity and expands productionfacilities, develops local raw materials areas…In 5-years (from 2005 to 2010), totalinvestment reaches 4.469 billion VND The investment has created high labor productivityand expanded production scale, which contribute to the increase of revenues and profits.Work arrangement, innovation and development to improve business performance inCentral Resolution 3, Course IX has been made clear and effective by the company:contributing trillions Dong to the State budget; dividends are guaranteed according to theResolution of the annual General Meeting of shareholders, businessés are diversified

Continue to implement centralized accounting model to improve conditions for modernizing

of machinery and technology Establish health nutritional counseling centers across thecountry, visit and provide free milk for thousands of children, primary school children andmalnourished Scientific and technological activities have always been regarded as keybreakthrough In 5 years of research, the company has launched over 30 new products,approved many initiatives to benefit the State hundreds of billions Dong, typical products asDielac Alpha 1,2,3; 100% fresh dairy products…

Modern facilities and and techniques are important factors contributing to the ensuredquality of products Equipments and production technology imported from advancedcountries such as Sweden, the U.S, Denmark, the Netherlands, France, Germany,Switzerland, help to ensure the quality and food safety

1.4 Management Structure:

ORGANIZATIONAL STRUCTURE OF VIETNAM DIARY PRODUCTS

JOINT STOCK COMPANY (VINAMILK) (Issued under Decision No 66/QD-CTS.NS/12 on 24/05/2012)

Functions and duties of Department of Finance:

 Functions:

- Advisors for Board of Directors on executive management of financial economic andaccounting activities in accordance with accounting law and regulations

- Advisors for Board of Directors on the control of finance and accounting at subsidiaries

- Promote financial mobilization and manage the use of financial resources mobilized

- Setup, promote and balance financial plans properly in every period

- Manage receivables and expenditures, purchases and sales of goods and services, makefull and timely deductions for payments to the budget, tax liabilities and other obligations tothe State under the law

- Setup periodically financial statements and other reports relating to accounting activity andsubmit to General Manager

- Disseminate and provide financial regulations of the Company to relevant departments asneeded

- Preserve and store accounting and financial documents, vouchers

- Secure data and accounting records of the Company

- Perform other duties assigned by General Director and Board of Directors

 Rights:

- Be involved in setting plans of revenues, expenses, production and personnel management

- Propose General Manager to balance funds and assets of the company to get effectiveproduction, business and management

- Control finance and accounting of subsidiaries

- Rights to refuse unlawful payments under regulations of the company and the law

- Be included in arranging, promoting and disciplining staff of management department andother related departments

2 ANALYSE FINANCIAL SITUATION OF THE CORPORATION:

2.1 Analyse financial situation through financial statements

Analyse the balance sheet:

I Cash and cash equivalents 415.417.916.497 234.843.207.079 234.843.207.079 3.101.435.901.849

II Short-term financial investments 2.314.253.566.692 2.092.259.762.292 2.092.259.762.292 736.033.188.192 III Receivables 753.498.136.776 1.119.075.135.003 1.119.075.135.003 2.126.947.803.251

Based on above balance sheet, we have figure of Asset/Capital Structure:

From the balance sheet and the figure, it can be seen that main assets of company areshort-term assets, accounting for about 60% total assets (2009: 5.050 trillion) and being inthe range of 50-60% in both 2010 and 2011 (at the end of 2011: 9.279 billion) The structurereflects the characteristic of a food company which provides products of short-time limits(dairy products, etc.), the amount of current assets must change constantly

In contrast to Asset structure, capital of company is mainly equity In 2009, equity is6.462 billion, accounting for 76.65% total capital; then equity goes up to 7.956 billion,accounting for 73.9% in 2010 and to 12.412 billion in 2011, accounting for 79.74% ofcapital structure That capital structure allows the company to minimize financial risks andnot be affected by interest However, it also indicates that the company does not useleverages well The business results between 2010 and 2012 illustrates that inefficiency; Theincrease of capital from 10.763 billion in 2010 to 15.564 billion in 2011 (an increase of45%) only make profit increase by 570 billion (about 16% compared to 2010)