Company Overview : Vietnam Dairy Products Joint Stock Company Vinamilk was established in 1976, quickly becoming a leading manufacturer of dairy products in Vietnam and one of the leadi
NON-FINANCIAL DATA
CORPORATE INFORMATION
Vietnam Dairy Products Joint Stock Company (Vinamilk) was established in
1976, quickly becoming a leading manufacturer of dairy products in Vietnam and one of the leading dairy companies in the world
Vinamilk has invested in international facilities in the US, Poland and New Zealand to assert its position as an international enterprise with strong potential and resources
Vinamilk has dominated the dairy market for 40 years with many quality dairy products: powdered milk, liquid milk, yogurt, condensed milk Vinamilk giant dairy group has appeared in more than 45 countries in any country By merging and exporting, we can see Vinamilk's products everywhere, Vinamilk has now become a familiar dairy brand among domestic and international consumers Export sales account for 13% of the company's total revenue
Up to now, Vinamilk has built 14 manufacturing factories, 2 logistics factories, 3 branches of sales offices, one dairy factory in Cambodia (Angkormilk) and one representative office in Thailand b Product:
Vinamilk has more than 200 types of products and consumes 18 million products per day
But when it comes to vinamilk, consumers will immediately think of the outstanding product and also the product that makes Vinamillk brand that is 100% fresh milk From there, it is the premise for Vinamilk to make other types of products such as: organic milk powder, condensed milk, energy drinks, yogurt, snack powder, adult nutrition products, soft drinks, ice cream, cheese, roasted rice milk, coffee, coconut water, and even sugar
Domestic market International markets Competitors
Vinamilk is the leading enterprise in Vietnam that produces milk and dairy products Currently, Vinamilk accounts for about 39% of the national market Up to now, the company has more than 220 NPP on vinamilk product distribution systems and over 1,400 points of sale nationwide Sales through all supermarkets nationwide
Vinamilk has competitive advantages such as the leading position in the industry supported by well-established brands
Diversified product portfolio, nationwide distribution and sales network Sustainable relationship with suppliers
Production technology and equipment meet international standards
The main markets are classified as follows:
✓ The rest: USA, Australia, Maldives, Suriname
Vinamilk is currently facing relatively high competition from domestic and foreign brands such as: TH True Milk,
The future dairy market will continue to expand and Competition level increases
VINAMILK COMPANY d Detail of Board Directors:
ANALYSIS OF SHAREHOLDERS Shareholders Structure and Important Shareholders
Shareholders Structure and Important Shareholders
STRATEGIC PLANNING AND MARKET POSITION B FINANCIAL DATA
Analysis of Income Statement
Vinamilk continues to maintain financial stability in 2019.Consolidated net revenue reached 56,318 billion VND in 2019, up 7.1% over the same period in 2018.Vinamilk continues to maintain financial stability in 2019 Consolidated net revenue reached VND 56,318 billion for the whole
2019, up 7.1% over the same period in 2018.Compared to growth of 2.7% in 2018, the 6.3% growth in 2019 mainly comes from:
➢ Volume growth led by some major product lines with double-digit growth In addition, some high-end product lines also recorded impressive growth, showing Vinamilk's suitable direction in the product portfolio's high-end strategy
➢ Vinamilk is one of the pioneers participating in the National School Milk Program By the end of 2019, Vinamilk has won the bid in the form of public bidding in 21 provinces and cities across the country, to implement the School Milk Program
Nowadays, businesses expand production companies, shops and the number of labor resources Besides, the cost of goods and services also increased significantly, affecting this result However, in parallel with the increase in revenue, the focus on operating costs is a necessity VNM still does well in exploiting profit based on this operating expense The operating costs of the company tend to increase from 2017 to 2019 In 2019, it reached VND
44,656 billion, an increase of approximately 12% compared to 2017 This increase in costs mainly focused on selling costs Consolidated SG&A in
2019 reached 25.6% of net revenue, stable compared to 25.5% in 2018 The total non-audit service costs incurred in 2019 only accounted for 32% of the audit service fees for the year
Corporate income tax on consolidated profit or loss for the year includes current income tax and deferred income tax Income tax is recognized in the consolidated statement of income unless there are any income taxes on the items that are recognized directly in equity, then the income tax is also recognized directly into equity In 2018, tax costs decreased compared to 2017 but by 2019, it increased dramatically The total tax expense in 2019 is more than VND 2,200 billion Tax costs significantly impact the company's profits Contributing to the total expenses the company spent to earn erratic after- tax profits in the past 3 years
In 2017, it reached 8,778 billion but in 2019 reached 12,632 billion, increasing approximately 43% The company has focused on using existing assets to increase production efficiency The specific expression is the significant growth in revenue of VNM in 2019 The total cost of depreciation over time of the company increased significantly Focus on fixed assets and investment properties
Analysis of Financial Position
According to data from Vinamilk's financial statements for the period of
2017 - 2019, the company's total assets have increased over the past 3 years In
2019, Vinamilk's total assets reached 44,699,873,386,034 VND, higher than the figure of 34,667,318,837,497 VND in 2017 In the total assets structure of the company, in 2019, almost growth in cash and other financial investment, but by the end of 2018, the spending of money on investments was dramatically reduced to expand projects on expanding production activities based on the company's debt factor is weak to pay the seller, so there is no need to concentrate money too much This shows that the company operates stably, the number of assets is increasing, inventories in 2 years are showing signs that the company is growing and succeeding each year.
Total Assets Inventories Share Capital Current Liabilities Non - Current Liabilities
The inventory of Vinamilk has changed significantly from 2017 to 2018 The number of inventories increased rapidly from 4,021,058,976,634 VND to 5,525,845,959,354 VND , possibly because the company was influenced by competitors so the company sold less products, leading to an increase in inventories, making the company's profit in 2018 is not high However, in 2019, this number has fall slightly to
4,983,044,403,917 VND The company has tried to overcome it by attracting more customers to buy its products, making inventories decrease, thereby improving profits c Share Capital
From 2017 - 2018, equity increased from 14,514,534,290,000 VND to
17,416,877,930,000 VND and this number will be maintained until 2019 Vinamilk has attracted investors to invest in the company by how to sell stocks on an exchange From actual data, it shows that Vinamilk is currently one of the leading companies in the stock market and has continuously maintained in recent years d Current Liabilities
From 2017 to 2019, short-term debt accounts for a large proportion and this number has not changed significantly over the years, short-term debts include trade payables, payables to employees and a short loan In the future, it is possible that Vinamilk's future loans will expand production models In general, the company uses equity capital instead of having large debt or long-term debt, so although the debt increase does not affect the financial ability of the company too much In addition, on June 30, Vinamilk signed an agreement to buy and sell shares to transfer securities However, this transaction is not completed yet and is reflected in the short-term payables related to the investment in Bao Viet Bank e Non- current liabilities
Long-term debt from 2017 to 2018 decreased significantly, but 2019 started to rise slightly again According to the report, the reason for the prolonged outstanding debt situation is the decrease in tax debt, which means that the company still bears a tax expense with its revenue and profit
Analysis of Statement of Cash flows
From this diagram, Cash flow from operating activities of the company is always positive over the years In 2018, cash flow decrease comparing to 2017, and it increases back in
2019 This partly shows efficiency in the company's main business Cash flow from operating activities in 2019 of the company stood at 11,410 billion, especially an increase of approximately 40% compared to 2018 The main reason is because of the rapid increase of inventories and accounts receivable in additional revenue of the business A significant part of the revenue has not brought real cash flow to the company, but it is part of the increase in receivables and increased inventories This is not a good sign that the company has activities to promote excessive sales Cash flow adjusted to increase due to a sudden increase in provision in 2019 after a decrease in 2018, provision from doubtful accounts of the company has increased a lot more over the past year From these things, we can also see the risk is of its financial investments Besides, there are risks to liquidation of company assets On another note, the company's spending on tax obligations to the state has increased rapidly over the years and is much larger than the company's revenue growth rate
VINAMILK COMPANY b Investing cash flow
The cash flow from investing is one of the sections on the cash flow statement that reports how much money has been created or spent from different investing activities during a particular period Cash flow from investing activities in the period 2017-2019 increased and decreased significantly Especially in 2019, it will increase from 1,770 billion (2017) to 6,747 billion (2019) There is a huge difference, which means that Vinamilk has carried out many investment activities during this period and has outstanding financial capacity compared to the years It helps to reflect the expectations of investors in large projects for profitable production expansion and high growth
VINAMILK COMPANY c Financing cash flow
Cash flow from financial activities of the company in the period 2017-2019 tends to decrease gradually over the years, from 7,535 units (2017) to 3,515 units (2019) and the largest part of cash flow belongs to stocks ie paid to shareholders Because Vinamilk's investment policy is to use cash flow from its own capital, it is understandable that the negative cash flow from the company's financial activities is understandable and minimizes interest rate risk
Analysis of Ratios
Gross profit ratio of Vinamilk since 2017 has not fluctuated significantly This reflects the relatively good business performance, pricing strategy and cost control levels From 47.7% - 47.2%, it is a relatively stable profit level over the years that not all companies can do like Vinamilk In addition, this shows a solid position and ability to attract various investment capital sources, and Vinamilk's ability to expand production processes
VINAMILK COMPANY b Debt Equity Ratio
The debt to equity ratio helps investors have an overview of the financial strength and financial structure of the business Over the past 3 years from 2017 to 2019, we see that the debt to equity ratio has always been at