group homework subject financial manegement 1 vinamilk group

The principal activities of the Vinamilk are produce and distribute condensed milk, powdered milk, fresh milk, soya milk, yogurts, ice-cream, cheese, fruit juice, coffee and other produc

DUY TAN UNIVERSITY INTERNATIONAL SCHOOL

Da Nang, December 8, 2023

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I INTRODUCTIO

N

1.1 Foundation and Development: 4

1.1.1 Foundation 4

1.1.2 Development 4

1.2 Structure of Vinamilk Corporation 6

1.2.1 Levels in Vinamilk's organizational structure 6

1.2.2 Analysis of Vinamilk's organizational chart and apparatus structure 6

1.3 Products and Services: 7

1.4 SWOT 12

II SEPERATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 15

III DATA ANALYSIS – VINAMILK CORPORATION 17

3.1 Liquidity Ratio 17

3.1.1 Current Ratio 17

3.1.2 Quick Ratio 18

3.2 Assets Management Ratios 18

3.2.1 DSO (Days Sales Outstanding) 18

3.2.2 Inventory Turnover 19

3.2.3 Fixed assets turnover 20

3.2.4 Total assets turnover 20

3.3 Debt Management Ratios 21

3.3.1 Debt Ratio 21

3.3.2 Times Interest Earned (TIE) 22

3.4 Profitability Ratios 22

3.4.1 Operating Margin 23

3.4.2 Profit Margin (ROS) 23

3.4.3 Return On Assets (ROA) 24

3.4.4 Return On Equity (ROE) 24

3.4.5 Return On Invested Capital (ROIC) 25

3.4.6 Basic Earning Power (BEP) 25

REFERENCE: 27

I INTRODUCTION:

1.1 Foundation and Development:

1.1.1 Foundation

Vinamilk is the biggest dairy company in Vietnam Based on the UNDP 2007 Top

200 largest firms in Vietnam report, it is also the 15th largest company in Vietnam.The principal activities of the Vinamilk are produce and distribute condensed milk,powdered milk, fresh milk, soya milk, yogurts, ice-cream, cheese, fruit juice, coffeeand other products derived from milk We have the leading distribution network inVietnam, giving us broad access to consumers We generate a substantial majority ofour revenues from sales of our products in Vietnam comprising both dairy and non-dairy products and export to countries such as Australia, Cambodia, Iraq, thePhilippines and the United States We are the leading producer of dairy products inVietnam based on sales volume and revenue Our products range from core dairyproducts such as liquid and powdered milk, to value-added dairy products such ascondensed milk, drinking and spoon yoghurt, ice cream, and cheese We offer one ofthe largest dairy portfolios in Vietnam, across a wide selection of products, flavours,and packaging sizes We market the majority of our products under our “Vinamilk”brand, which has been designated as both a Famous Brand and one of the Top 100Strongest Brands in 2006 We have also been voted the top brand in the “Top TenHigh-quality Vietnamese Goods” for each year between 1995 to 2007

1.1.2 Development

Vinamilk has a history of formation and development for more than 40 years withconstant changes and efforts Despite being present in the Vietnamese market for along time, until now, Vinamilk's position in the dairy industry in our country has notchanged even though over the years, foreign dairy brands have entered the market.Vietnam market During its more than 40 years of operation, Vinamilk has gonethrough many different stages of development Each stage has marked progress newbusiness, along with the stability of a large brand with a long history

The period of establishment from 1976 to 1986 of Vinamilk:

On August 20, 1976, Vietnam Dairy Products Company (Vinamilk) was officiallyestablished with the original name Southern Coffee and Milk Company Companyunder General Department of Food Industry in the South

In 1982, the Southern Milk - Coffee Company was transferred to the Ministry ofFood Industry and renamed the Milk - Coffee - Confectionery Enterprise I

Doi Moi period from 1986 to 2003:

In March 1992, the Union Factory of Milk - Coffee - Confectionery I, officiallychanged its name to Vietnam Dairy Products Company (Vinamilk) - under theMinistry of Light Industry The company specializes in the production and processing

of dairy products

In 1994, Vietnam Dairy Products Company built one more factory in Hanoi todevelop the market in the North more conveniently This event raised the total thecompany's factory has increased to 4 The construction is part of the expansion anddevelopment strategy to be able to meet the needs of people's products NorthernVietnam In 1996, Joint Venture with Quy Nhon Frozen Joint Stock Company toestablish Binh Dinh Dairy Joint Venture Enterprise This joint venture has helped thecompany successfully penetrate the Central market in the most favorable way

In 2000, Can Tho Dairy Factory was built in Tra Noc Industrial Park The goal is tobetter meet the needs of consumers in the Mekong Delta Also during this time, theCompany also built an operating warehouse enterprise with the address at 32 DangVan Bi, Ho Chi Minh City In May 2001, the company inaugurated Can Tho DairyFactory

The equitization period from 2003 to present:

In November 2003, the company was transformed into Vietnam Dairy ProductsJoint Stock Company With crypto trading on the Vietnamese stock exchange of thecompany is: VNM Also in 2003, Khanh Thanh Company added milk factories in BinhDinh and Ho Chi Minh City

In 2004, the Company obtained a summ of shares of Saigon Dairy Products JointStock Company, increasing the number of capital conditions to VND 1,590 billion.Until 2005, the Company continued to purchase shares of business partners in BinhDinh Dairy Joint Stock Company In June 2005, the company inaugurated the Nghe

An Dairy Factory On January 19, 2006, the company was listed on the stock exchange

Ho Chi Minh City At the time the capital of the State Capital Investment and TradingCorporation holds 50.01% of the company's charter capital On August 20, 2006,Vinamilk officially renewed the company's brand logo

In 2009, the enterprise has developed 135,000 distribution agents, 9 factories andmany dairy farms in Nghe An, Tuyen Quang In 2012, the company continued tochange the brand's logo

In the period 2010 - 2012, the enterprise built a milk powder factory in Binh DuongProvince with a total investment capital of 220 million USD In 2011, Da Nang DairyFactory came into operation with a private capital of up to 30 million USD

In 2016, Inaugurated the first dairy factory in foreign country, which isAngkorimilk Dairy Factory in Cambodia By 2017, continue to inaugurate DalatOrganic Yogurt Farm - the first organic dairy farm in Vietnam

Up to now, Vinamilk owns a system of 13 factories across the country Thefactories all meet the strictest international standards, with modern technology toproduce most of the main product lines of the dairy industry.

1.2 Structure of Vinamilk Corporation

1.2.1 Levels in Vinamilk's organizational structure

According to Vinamilk's organizational structure diagram, all levels in the companyare stratified in the following order: supreme management level, intermediatemanagement level, grassroots management level and employees

Image 1: Structure of Vinamilk Corporation

1.2.2 Analysis of Vinamilk's organizational chart and apparatus structure

Through the above diagram, Vinamilk currently has the following functionaldepartments:

General Meeting of Shareholders

The General Meeting of Shareholders of Vinamilk's organizational structureconsists of all shareholders – voting rights holders from ordinary shareholders tovoting preference shareholders The General Assembly is the highest decision-makingbody of a joint-stock company

The General Meeting of Shareholders will have the right to decide on the businessplan and tasks to ensure production based on the development orientations of the

company In addition, the General Meeting of Shareholders may also decide to amend

or supplement the charter capital of the company

Some other powers of the Board of Shareholders are to elect or dismiss, dismissmembers of the Board of Directors and the Supervisory Board or decide on dissolution

or reorganization of the company

Board of Directors

The Board of Directors is the highest management body in Vinamilk'sorganizational structure This position has full authority on behalf of the enterprise todecide all issues related to the company's goals and interests, except for matters withinthe competence of the general meeting of shareholders Vinamilk's Board of Directors

is elected by the General Meeting of Shareholders, consisting of a Chairman of theBoard of Directors and 10 General Meetings of Shareholders

Director, General Director of the company

The director or general director of Vinamilk is the person who runs the company'sbusiness activities The position will be held by the board responsible for appointingone person from the board or hiring new personnel

Board of Supervisors

The Supervisory Board in the organizational structure consists of 4 members elected

by the General Meeting of Shareholders The term of office of the elected supervisoryboard is 5 years Members will be re-elected and the number of terms is not limited.The Supervisory Board has the function and task of checking the legality,reasonableness, honesty and prudence in the process of managing and operatingbusiness activities Inspection and supervision activities include accounting, statisticsand financial reporting to ensure the interests of shareholders legally In particular, thisunit will operate independently of the board of directors and the board of directors

1.3 Products and Services :

At Vinamilk, product quality is a vital factor, the first seed that is cherished,nurtured, and cultivated to become a great fruit That is the value that endures overtime, helping Vinamilk to firmly face challenges Quality is the key to SustainableDevelopment

In addition, Vinamilk uses QR code traceability technology for product lines such

as 100% Organic Fresh Milk, 100% Fresh Milk, and Vinamilk Organic GoldPowdered Milk Accordingly, each product will have only one unique QR code withinformation encrypted by Blockchain that cannot be replaced, modified, orcounterfeited Just scan the QR code at the bottom of the product box, and consumerscan easily access full product information

Vinamilk not only diversifies its product categories but also respects and cherisheseach product through formulas with special nutrients that are suitable for physicalconditions at all ages and satisfy all the needs of family members Vinamilk has morethan 250 products in 13 product categories:

Fresh Milk & Nutritious Milk

* Fresh Milk

- Vinamilk fresh milk 100%

- Vinamilk Green Farm

- UHT Vinamilk Flex

Product for pregnant & infant

* Product for pregnant and breastfeeding women

- Optimum Mama Gold

- Dielac Mama Gold

* Product for infant

- Pedia Kenji

- ColosGold

- YOKOGOLD

- Optimum Gold

- Dielac Alpha Gold

- Dielac Grow Plus with Colostrum

- Dielac Grow Plus with Bird’s Nest

- Dielac Grow

- Dielac Alpha

Baby Food

- Ridielac Gold Infant Cereal

- Optimum Gold Infant Cereal

Nutrition product for Adults

Yogurt Drink and Juicy Milk Drink

* UHT Yogurt Drink

- Vinamilk SuSu UHT Yogurt Drink

- Vinamilk Yomilk UHT Yogurt Drink

* Probiotic Drinking Yogurt

- Vinamilk Probi Probiotic Drinking Yogurt

* Juicy Milk Drink

- Vinamilk Hero Juicy Milk Drink

- Vinamilk Fresh Milk Soymilk

- Vinamilk Goldsoy Soymilk

- Vinamilk Double Calcium Soymilk

* Nutmilk

- Super Nut 9 Kinds of Nuts

- Vinamilk Walnut Soymilk

- Vinamilk Almond Soymilk

- Vinamilk Red bean Soymilk

- Artichoke Drink – Less sugar

- Artichoke Drink – Sugar Free

- Green Tea Aloe Vera

- Grape Juice Drink Aloe Vera

- Vinamilk Twin Cows Premium

* Ice Cream for Kids

- Nhoc Kem Ice Cream stick

- Subo Ice Cream stick

* Ice Cream for Young Adults

- Vinamilk Delight Ice Cream stick

- Vinamilk Delight Ice Cream cone

Nationwide Distribution Channel - Since Vinamilk is a long-standing brand its

influence spreads all over Vietnam It has 250 distributors and 200,00 outlets over

64 provinces in Vietnam itself Using its influence it has taken over almost 75% ofthe milk industry based in Vietnam

Diverse Product Range – Not only does Vinamilk sell fresh milk and milk

powder but it also sells different kinds of products like cheese, juices, and othernutritional consumables Diversity in options for the consumer causes an increase

in sales of Vinamilk

Familiar Trademark – Vinamilk is a long-standing name in the industry It has

gradually evolved into a household name for Vietnamese people Familiarity if thebrand among the local people results in the people choosing Vinamilk over otherbrands

International standard manufacturing equipment and Technology- Vinamilk

uses equipment and technology on par with the global big-name industries It usesEuropean techniques for manufacturing and Niro Denmark technology for ejectdesiccation Using new and advanced technology helps Vinamilk maintain thehygiene and quality outfits products and increase the favorability of the brand

Strong Marketing – Vinamilk has started an aggressive Digital Marketing

campaign taking over the social media of Vietnam Since the campaign Vinamilkhas seen a nearly 60% rise in sales and launched various schemes to keep up withthe demand Also marketing its use of advanced technology and its new productsincreases the awareness among the people Social media marketing is one of thedemeaning marketing strategies used by companies If you wish to learn the latestskills in marketing, check out IIDE’s Social Media Marketing Course now

Several subsidiaries – Vinamilk has a large number of subsidiary companies that

promote several other products These subsidiaries operate independently andincrease the awareness of the sales of the parent company Vinamilk

Weakness of Vinamilk

Weaknesses are the internal factors of a company that creates a drawback in thegrowth of the company These problems need to be addressed before it becomes moretroublesome Following are the Weaknesses in SWOT Analysis of Vinamilk:

Raw materials- The raw materials required for manufacturing several products

are imported from outside of Vietnam Nearly 65% of raw materials are importedgiving rise to a large capital use If raw materials are used from Vietnam itself itwill give employment opportunities to the local people

The decline in export Business- Since the pandemic, the export business of

Vinamilk has seen a sharp decline Export business is fickle and Vinamilk mustcome up with new schemes and plans to continue the export business sector of thecompany to keep up with the market at the global level

Negative Press- Rumours have always surrounded Vinamilk regarding the various

products but none of them has been proven to date Competitors have alwaystargeted Vinamilk and spread unfounded rumors among the people and causedpanic The company should keep up to its reputation in the market with the latestskills of online reputation management which are crucial for any company If youare interested in learning this skill, check out IIDE’s Online ReputationManagement Course now

Opportunities of Vinamilk

Opportunities are the positive factors for a company This helps the company togrow in the market and create more customers for its brand Following are some of theOpportunities in SWOT Analysis of Vinamilk: