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 UNIVERSITYINTERNATIONAL SCHOOL

GROUP HOMEWORK

SUBJECT FINANCIAL MANEGEMENT 1: CLASS PSU-FIN 301 MIS:

SUPERVISOR LUU THI THU HUONG: STUDENT GROUP VINAMILK GROUP:

Da Nang, December 8, 2023

ĐẠI HỌC DUY TÂNPHIẾU CHẤM ĐIỂM ĐỒ ÁN MÔN HỌCKHOA QLKT VIỆT MỸ PSU (Dành Cho Đồ Án Nhóm)

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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, coffee and other products derived from milk We have the leading distribution network in Vietnam, giving us broad access to consumers We generate a substantial majority of our revenues from sales of our products in Vietnam comprising both dairy and non-dairy products and export to countries such as Australia, Cambodia, Iraq, the Philippines and the United States We are the leading producer of dairy products in Vietnam based on sales volume and revenue Our products range from core dairy products such as liquid and powdered milk, to value-added dairy products such as condensed milk, drinking and spoon yoghurt, ice cream, and cheese We offer one of the 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 100 Strongest Brands in 2006 We have also been voted the top brand in the “Top Ten High-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 with constant changes and efforts Despite being present in the Vietnamese market for a long time, until now, Vinamilk's position in the dairy industry in our country has not changed even though over the years, foreign dairy brands have entered the market Vietnam market During its more than 40 years of operation, Vinamilk has gone through many different stages of development Each stage has marked progress new business, 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 officially established with the original name Southern Coffee and Milk Company Company under General Department of Food Industry in the South.

In 1982, the Southern Milk - Coffee Company was transferred to the Ministry of Food 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, officially changed its name to Vietnam Dairy Products Company (Vinamilk) - under the Ministry 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 to develop the market in the North more conveniently This event raised the total the company's factory has increased to 4 The construction is part of the expansion and development strategy to be able to meet the needs of people's products Northern Vietnam In 1996, Joint Venture with Quy Nhon Frozen Joint Stock Company to establish Binh Dinh Dairy Joint Venture Enterprise This joint venture has helped the company 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 to better meet the needs of consumers in the Mekong Delta Also during this time, the Company also built an operating warehouse enterprise with the address at 32 Dang Van Bi, Ho Chi Minh City In May 2001, the company inaugurated Can Tho Dairy Factory.

The equitization period from 2003 to present:

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

In 2004, the Company obtained a summ of shares of Saigon Dairy Products Joint Stock Company, increasing the number of capital conditions to VND 1,590 billion Until 2005, the Company continued to purchase shares of business partners in Binh Dinh 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 Trading Corporation 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 and many dairy farms in Nghe An, Tuyen Quang In 2012, the company continued to change the brand's logo.

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

In 2016, Inaugurated the first dairy factory in foreign country, which is Angkorimilk Dairy Factory in Cambodia By 2017, continue to inaugurate Dalat Organic Yogurt Farm - the first organic dairy farm in Vietnam.

Up to now, Vinamilk owns a system of 13 factories across the country The factories all meet the strictest international standards, with modern technology to produce 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 company are stratified in the following order: supreme management level, intermediate management 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 functional departments:

General Meeting of Shareholders

The General Meeting of Shareholders of Vinamilk's organizational structure consists of all shareholders – voting rights holders from ordinary shareholders to voting preference shareholders The General Assembly is the highest decision-making body of a joint-stock company.

The General Meeting of Shareholders will have the right to decide on the business plan 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, dismiss members 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's organizational structure This position has full authority on behalf of the enterprise to decide all issues related to the company's goals and interests, except for matters within the 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 the Board 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's business activities The position will be held by the board responsible for appointing one 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 supervisory board 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 operating business activities Inspection and supervision activities include accounting, statistics and financial reporting to ensure the interests of shareholders legally In particular, this unit 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 over time, helping Vinamilk to firmly face challenges Quality is the key to Sustainable Development

In addition, Vinamilk uses QR code traceability technology for product lines such as 100% Organic Fresh Milk, 100% Fresh Milk, and Vinamilk Organic Gold Powdered Milk Accordingly, each product will have only one unique QR code with information encrypted by Blockchain that cannot be replaced, modified, or counterfeited Just scan the QR code at the bottom of the product box, and consumers can easily access full product information.

Vinamilk not only diversifies its product categories but also respects and cherishes each product through formulas with special nutrients that are suitable for physical conditions at all ages and satisfy all the needs of family members Vinamilk has more than 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

Strengths are the positive point of a company that keeps it ahead of the competition Following are Strengths in SWOT Analysis of Vinamilk:

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% of the 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 other nutritional 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 the brand among the local people results in the people choosing Vinamilk over other brands.

International standard manufacturing equipment and Technology- Vinamilk

uses equipment and technology on par with the global big-name industries It uses European techniques for manufacturing and Niro Denmark technology for eject desiccation Using new and advanced technology helps Vinamilk maintain the hygiene 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 Vinamilk has seen a nearly 60% rise in sales and launched various schemes to keep up with the demand Also marketing its use of advanced technology and its new products increases the awareness among the people Social media marketing is one of the demeaning marketing strategies used by companies If you wish to learn the latest skills 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 and increase 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 the growth of the company These problems need to be addressed before it becomes more troublesome 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 imported giving rise to a large capital use If raw materials are used from Vietnam itself it will 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 must come up with new schemes and plans to continue the export business sector of the company 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 always targeted Vinamilk and spread unfounded rumors among the people and caused panic The company should keep up to its reputation in the market with the latest skills of online reputation management which are crucial for any company If you are interested in learning this skill, check out IIDE’s Online Reputation Management Course now.

Opportunities of Vinamilk

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