Financial analysis of VIETNAM DAIRY joint stock company (VINAMILK)

FACULTY OF FINANCE AND COMMERCE Topic: Financial analysis of VIETNAM DAIRY Joint Stock Company (VINAMILK) from 2016 to 2020 HCM City, 21/06/2021 I INTRODUCTION 1.1 About the company Table 01- General information of Vinamilk VINAMILK Full name VIETNAM DAIRY Joint Stock Company ( VINAMILK ) Address Tan Xuan Street, Tan Phu Ward, District 7, Ho Chi Minh City Phone, Fax 8.54155555 Website www.vinamilk.com.vn Email vinamlik@vinamilk.com.vn Slogan "International Quality - Vinamilk Quality" Established On August 20, 1976 Vinamilk has now become the leading company in Vietnam in processing and supplying dairy products, ranked in the Top 10 strong brands in Vietnam Vinamilk not only dominates the domestic dairy market but also exports its products to many countries around the world such as the US, Australia, Canada, 1.2 About the product: Vinamilk has a lot of products made from milk, such as: - Organic Nutritional Products - Vinamilk Water Milk - Vinamilk Yogurt - Vinamilk Powdered Milk for Pregnant Mothers and Children - Mileage powder - Adult Nutrition Products - Condensed milk - Soft Drinks - Ice Cream - Cheese - Soy Milk - Vietsugar Road - - 1.3 About the market: - 1.3.1 Domestic market - According to Nielsen, Vinamilk 100% fresh milk product of Vietnam Dairy Products Joint Stock Company (Vinamilk) is the leading product in terms of both quality sold by enterprises in the fresh milk segment from 2015 to present For many years, Vinamilk has always led the market with fresh milk products and many nutritional products of international quality With efforts to improve technology and pioneer, list of "terrible" products, diverse and new continuously, developing dairy herds in both quantity and quality, wide distribution system and diverse platform: 12 global gap standard farms, nearly 150 herds of dairy cows, 13 manufacturing plants milk production, subsidiaries, link domestic; subsidiaries, link foreign - Vinamilk continues to consolidate and affirm its position as the No dairy company in Vietnam 1.3.2 Overseas markets - In general, Vinamilk is still asserting its strength with stable business results According to recently published statistics, this enterprise has risen six places in the list of top 50 dairy companies in the world, rising to 36th position This shows that the internal strengths are being properly promoted by Vinamilk At the right time and in the right way, in choosing a sure direction in the domestic market to create the impetus for reaching out to international markets - Up to now, Vinamilk has exported to 56 countries and territories with a total turnover of more than 2.4 billion USD in which there are countries with very high requirements for nutritional quality such as Japan, Canada, USA, Australia, Thailand - 1.4 Opponents - 1.4.1 Direct opponent - The competition of dairy companies in the battle over pasteurized fresh milk, pasteurized fresh milk, and raw milk (milk powder) - With the characteristics of the industry, the dairy market is increasingly competitive There are more than 50 dairy companies in Vietnam, most of which are small and medium-sized companies - However, the dairy market is mainly focused on the two manufacturers with the largest market share, Vinamilk, accounting for more than 50% of the dairy industry, followed by Friesland Campina Vietnam Followed by products with the same market share of imported milk from firms like Mead Johnson, Abbott, Nestle…TH true Milk, Nutifood, - Powdered milk is the most fiercely competitive segment today - In the Vietnamese market, powdered milk and imported dairy products account for a large market share, of which Vinamilk is still being trusted by Vietnamese users and is on the rise, holding 40% of the domestic market share However, on the other hand, Vinamilk's representative also said that "will face many challenges from the opportunities that are opening up" when Russia and EAEU countries are countries with a very developed dairy industry for a long time - Before the strategies of competitors, for Vinamilk to operate in strongly competitive dairy industry, it requires the company to constantly invest in R&D, and at the same time strengthen marketing campaigns, promote images, create pressures Force for the company in many aspects such as cost, revenue, profit but it is also a positive factor contributing to increasing competitiveness and creating momentum for Vinamilk to develop 1.4.2 Potential opponent - The dairy industry in general and the market for pasteurized milk products in particular in Vietnam is an attractive industry with high profit margins On the other hand, the market potential in Vietnam is still quite large, so it can be said that this is an industry that attracts many domestic and foreign companies to participate in the future Barriers to entering the industry: - Technology techniques: quality management technologies ( KCS ), complex formulations as well as high requirements on packaging to ensure milk quality - Capital: to enter the industry, a large amount of initial investment is required for factories and machinery… - Commercial factors are difficult in creating a brand: customers are increasingly finding it difficult to accumulate and create There is no small pressure from the system of difficult customers in the distribution area - Specific resources: such as input materials, especially raw materials must be imported from abroad, human resources for production require high expertise…  Although this is a very attractive industry, Barriers to market entry are also not lacking in difficulties It can be said that in the future, milk products 100% pure pasteurized fresh milk products will face many new domestic and foreign competitors - 1.5 Company development orientation - - Vision: Vinamilk will focus all resources to become a healthy dairy and food company with the fastest and most sustainable growth in the Vietnamese market with a strategy to build product lines with long-term competitive advantages - - Mission: Vinamilk constantly diversification of product lines, expanding distribution territory to maintain a sustainable oil leading position in the domestic market, and maximize the profitability of the Company's shareholders The company's objectives and pursuit of a business development strategy are based on the following key factors: - Become in 30 milk company the world's largest - Leading in the first creative innovation nature high application - Strengthening the leading position of Viet Nam dairy industry - Become a dairy company that creates the most value in southeast ASIA II SUSTAINABLE DEVELOPMENT II.1 Define and explain sustainable development II.1.1 Define sustainable development - Sustainable development is a development that meets the needs of the current generation without damaging the ability of future generations to meet those needs based on a close and harmonious combination of economic growth, solving social problems, and protecting the environment - 2.1.2 Explain the three economic: social, environmental and factors - Factors Sustainable Development in a business: a sustainable development enterprise needs 03 important and inseparable factors, including stable economic growth, solving social problems and protecting the environment - Economic factors: is the process of achieving stable and steady economic growth; highly productive; use science and technology in production without negatively affecting society and the environment Ensure the sustainability of the economy not only develops an increasingly healthy economy but also avoids future economic recessions or stagnation - Social factor: is developed to ensure fairness in society, zero hunger and reduce poverty, create jobs, increase incomes for workers, and ensure that people have the opportunity to have full access to basic services such as health and education but don't cause adverse economic and environmental impacts Ensure social sustainability to create opportunities for everyone in society to be equal; reduce the risk of social conflict or war - Environmental factor: is the rational use of natural resources, avoiding over-exploitation of available resources; maintaining biodiversity, atmospheric stability; limiting the problem of environmental pollution; mitigating the impacts of climate change and natural disasters; Ensure environmental sustainability to satisfy the natural and environmental needs of present and future generations II.2 Sustainable development at Vinamilk - Vinamilk has conducted the Sustainable Development Report since 2012 and is separate from the Company's Annual Reports This enterprise is always appreciated for its consistency with sustainable development goals, maintaining growth in production and business activities in parallel with focusing on human development, social responsibility activities, community-oriented and environmental protection - Economic factor: Based on Vinamilk's financial report data from 2016-2020, the team drew a chart to see the difference between profit after tax and corporate income tax Chart 01- Net income after Tax and Tax of Vinamilk in 2016- 2020 (Unit: billion) - In general, the company's profit after tax in 2017 increased compared to 2016 However, this number decreased in 2018 The reason is that Vinamilk has paid a large amount for selling expenses such as increasing promotions, displaying, introducing products, and supporting sales Because of the purposeful investment, Vinamilk's profit after tax quickly recovered and increased sharply in 2019 and 2020 It can be said that investing in selling and marketing expenses has helped this company increase sales revenue as well as gain more market share, in both old and new segments, old products, and new products From the above data, it can be concluded that: Vinamilk always maintains its No.1 position in Vietnam's dairy industry because diversifying products to meet the nutritional needs of consumers; applying modern equipment to cow raising and milking to improve milk yield and quality… - Vinamilk pays taxes at the District Tax Department, Ho Chi Minh City- where this business is headquartered As well as profit after tax, the tax payable to the government of this company in 2017 increased compared to 2016; in 2018: decreased; 2019 and 2020: strong increase Vinamilk has contributed to promoting local economic development in dairy farms and factories; buying cow's milk from farmers; Despite all the fluctuations of Covid-19, Vinamilk has always actively contributed to economic growth in Vietnam - Social factors: Based on Vinamilk's Sustainable Development Report, the team drew chart 02 to see the increase in Vinamilk's employees over the years 2016-2020 - Chart 02: Number of employees at Vinamilk in 2016-2020 (Unit: people) Through the chart above, it can be seen that the number of employees of Vinamilk increases year by year The company has contributed to creating jobs for thousands of people, buying milk from farmers, and improving the material and spiritual life of its employees Therefore, Vinamilk is always rated as one of the best places to work in Vietnam The Company has deducted 10% of profit after tax into the Bonus and Welfare Fund to reward employees according to performance evaluation; implement the agreed benefits under the Collective Labor Agreement and spend on social, charity and community activities Some benefits that this company's employees receive such as human resource training courses tablets; routine health care; work-life balance (giving gifts to employees, giving gifts to employees' children, vacations, sports-art activities ); regimes for female employees (maternity allowance, child care allowance, gifts ); allowances and rewards (lunch allowance, right to buy and own shares, etc.) - In addition to the benefits for the company's employees, Vinamilk also actively organizes volunteer programs for the community: community support activities (Mid-Autumn Festival, voluntary blood donation, flood support, ); Vietnam Rising Milk Fund - for children in difficult circumstances, without sufficient nutrients; The Vinamilk Scholarship Fund - Nurturing Vietnamese young talents - encourages primary school students across the country to have good academic achievements and a spirit of excellence in learning and training Vinamilk is a company that implements social factors well; meets the target of 17 sustainable development goals of the United Nations as zero hunger, reduce poverty, healthy life, and reduce inequalities - Environmental factors: As a company highly appreciated for sustainable development, Vinamilk always seeks solutions to minimize adverse impacts on the environment; find ways to effectively use inputs (materials, energy, water), and control outputs to minimize impacts on the environment The company has built the "Fund of one million trees for Vietnam" to propagate environmental awareness to the community and contribute to a clean living environment In addition, the company also organizes internal programs such as: "Living green with Vinamilk", the "Green Project" collective contest for units, the festival of exchanging boxes - for trees,… - Through the analysis of factors of sustainable development, we determine that: Vinamilk’s a sustainable development company with good economic growth and ensuring social and environmental factors Vinamilk will grow stronger and develop in the long term with the direction associated with sustainable development as in the past years This is good news for the company III STAKEHOLDER: Internal Stakeholders - External Stakeholders - Employees: over 9,000 officials and employees - Manager: CEO – Mrs Mai Kiều Liên - Society: has performed many charitable programs for the community Creditors: banks, individuals - Suppliers: dairy farms are important strategic partners Owners: Mrs Lê Thị Băng Tâm- President of the Board of Management of Vinamilk Shareholders: -Large domestic shareholders -Other shareholders in the country -Foreign shareholders -Foreign shareholders own more than 5% of the shares Government: tax code- 03005869 Customer: -Communication channel retail point: 240,000 -Supermarket retail point: 5,400 -Convenience store channel retail point: 2,400 -Individuals, households - Picture 01: Internal Stakeholders and External Stakeholders 3.1 Internal Stakeholders - Employees: Vinamilk has over 9,000 staff and employees working in 40 units comprising branches, factories, dairy farms, warehouses and subsidiaries, both domestic and overseas - Manager: • Mrs Mai Kiều Liên: General Director • Mr Mai Hoài Anh: International Business Executive Director and run a domestic business (Holding 512,511 shares of VNM at 0.02%) • Mr Trịnh Quốc Dũng: The CEO of Development of Raw Materials Area (Holding 241,950 shares of VNM at 0.01%) • Mrs Nguyễn Thị Thanh Hịa: Supply Chain Executive (Holding 1,108,184 shares of VNM at 0.05%) • Mrs Bùi Thị Hương: Executive Director of Personnel – Administration & Foreign Affairs (Holding 134,176 shares of VNM at 0.01%) • Mr Nguyễn Quốc Khánh: Chief Executive Officer for Research and Development (Holding 29,755 shares of VNM at 0.00%) • Mr Lê Thành Liêm: Chief Financial Officer and Chief Accountant (Holding 493,381 shares of VNM at 0.02%) • Mr Phan Minh Tiên: The CEO of Marketing (Holding 115,716 shares of VNM at 0.01%) • Mr Trần Minh Văn: Executive Producer (Holding 887,236 shares of VNM at 0.04%) - Owners: • Mrs Lê Thị Băng Tâm: The Chairwomen of the Board of Directors, the head of the Personal • section, members of the Reward Subcommittee, Independent Board of Directors Mrs Mai Kiều Liên: Member of the Managing Board, member of the Personnel Subcommittee, member of the Strategic Subcommittee, general Director (Holding 6,400,444 shares of VNM at 00.31% until the date 31/12/2020 and 30,079 shares of the Vietnam Milk cow limited liability • Company until the date 30/06/2020) Mrs Đặng Thị Thu Hà: The Board of Directors does not run, member of the Auditing • • Subcommittee, member of the Reward Subcommittee Mr Đỗ Lê Hùng: The Board of Directors does not run, the Head of the Audit Committee Mr Lê Thành Liêm: Member of the Board of Management, member of the Subcommittee of Auditors, financial Executive director and chief accountant • Mr Lee Meng Tat: Member of the Board of Management does not run, member of the Strategic • Subcommittee, member of the Personnel Subcommittee Mr Michael Chye Hin Fah: Member of the Board of Management does not run, member of the Subcommittee of Audit, member of the Reward subcommittee 3.2 External Stakeholders: - Suppliers: Dairy farms are very important strategic partners of Vinamilk in providing consumers with leading premium products - Society: Vinamilk has carried out many charity programs for the community • For example: Vietnam during fund; “For the health and safety of children – join hands to fight against Covid-19”; A million tree fund for Vietnam; To finish the one million green trees milestone; A school milk program; Pioneering brings optimal nutritional benefits to school age development; Covid-19 precention and control activities - Government: Tax code: 03005869- pays taxes at the District Tax Department, Ho Chi Minh City - Creditors: • Short - term loan: 7,316,497,078,307 VND (31/12/2020) - Table 02: Terms and conditions of current short-term loans with balances as follows: - PRESEN - CURRENC - LENDERS T Y - 31/12/2020 VND - Sumitomo Mitsui Banking Corporation, Ho Chi Minh City - (i) - USD - 2,130,220,000,000 - (i) - VND - 2,071,058,149,400 - (i) - USD - 1,670,816,000,000 - (i) - USD - 1,159,500,000,000 branch - Joint Stock Commercial Bank for Foreign Trade of Vietnam, Ho Chi Minh City branch - MUFJ Bank, Ho Chi Minh City branch - The Development Bank of Singapore Limited - HSBC Bank Vietnam Limited, Ho - (i) - VND - 241,183,928,907 Chi Minh City branch - HSBC Bank USA - (ii) - USD - 23,010,000,000 (i) These loans are not secured (ii) This loan is secured by assets with a recorded value of 819,579 million VND on December 31st,2020 (January 1st,2020: 750,071 million VND) • Long-term loans: 167,421,748,884 VND (31/12/2020) - Table 03: Terms and conditions of long-term loans currently have balances as follows: - LENDERS - HSBC Bank USA - HSBC Bank USA - Individual - - PRESEN - CURRENC - MATURIT T - (i) - (ii) - (ii) Y - USD - USD - VND Y YEAR - 2022 - 2022 - 2039 - 31/12/2020 VND - 117,351,000,000 - 70,735,156,050 - 44,592,834 (i) This loan is secured by assets with a carrying amount of 819.579 million VND on December (ii) 31st,2020 (January 1st,2020: 750.071 million VND) These loans are unsecured - Shareholders: - Table 04: Shareholder structure - Major shareholder (>=5%) - Domestic - Foreign - Treasury shares - Other shareholders ( it's not good for the company Indexes in 2019 and 2020 are lower than the - industry average Comparing: Vinamilk’s Total asset turnover from 2016 to 2018 are larger than i.a: good for company But this ratio in 2019 and 2020: are lower than the industry average- not good  Using total assets to generate the net revenues of the company is not efficient Recommendation:  Increase revenue by pushing inventory  Accelerate products to compete and expand the market  Reduce reseller discounts as low as possible to increase demand  Strengthen fixed asset management and effective use - - 4.2.2.5 Total equity turnover: Show how much amount of equity to create how much amount of revenues - - Total equity turnover = - Table 13: Net revenues, Equity, Total equity turnover, Industry Average - Net revenues (Billion) - Equity (Billion) - 2016 - 46,794 - 22,405 - 2017 - 51,041 - 23,873 - 2018 - 52,561 - 26,271 - 2019 - 56,318 - 29,731 - 2020 - 59,636 - 33,647 - Total equity turnover - Industry Average - - 2.1 - 2.84 - 2.14 - 2.84 -2 - 2.84 - 1.89 - 2.84 - 1.77 - 2.84 - Chart 16: The chart shows Vinamilk’s Total equity turnover from 2016 to 2020 - Explain: For every VND of equity, it generates 2.1 VND in net revenue in 2016; 2.14 in 2017; in - 2018; 1.89 in 2019 and 1.77 in 2020 Trending: From 2016 to 2017, the ratio increased slightly but from 2017 to 2020 it tends to decrease - It’s not good for the company Comparing: The Vinamilk’s Total equity turnover of all years is lower than the industry average - The company uses owner's Equity inefficiently Recommendation: Use equity more efficiently by use part to pay off long-term debt Increase net revenues by:  Increase revenue by pushing inventory  Accelerate products to compete and expand the market  Reduce reseller discounts as low as possible to increase demand 4.2.3 The debt ratios - 4.2.3.1 Debt ratio: Measuring the total assets that are supported by the company’s creditors This ratio is high, which means using the finance of creditors to create the profits will higher - Debt ratio = - Table 14: Total debts, Total assets, Debt ratio, Industry Average - Total debts (Billion) - Total assets (Billion) - Debt ratio (%) - 2016 - 6,972 - 29,378 - 24 - 2017 - 10,792 - 34,667 - 31 - 2018 - 11,094 - 37,366 - 29 - 2019 - 14,968 - 44,699 - 33 - 2020 - 14,785 - 48,432 - 30 - Industry Average (%) - 85 - 85 - 85 - 85 - 85 - Chart 17: The chart shows Vinamilk’s Debt ratio from 2016 to 2020 • Explain: total debt accounted for 24% of total assets in 2016; 31% in 2017; 29% in 2018; 33% in • 2019 and 30% in 2020 The trending: increased sharply in 2016-2017 and 2018-2019 => Not good for the company • • Decreased in 2017-2018 and 2019-2020: good for company Comparing: this ratio is much lower than the industry average => This is great for the company Recommendation: Through the balance sheet, we know that Vinamilk's structure of capital invested and mobilized in the production and business process has low financial initiative Vinamilk need to reduce debt and prioritize long-term debt using a portion of equity or inventory turnover - 4.2.3.2 Debt on equity: Measure the level of using the equity in business activities - - Debt on equity = - Table 15: Total debts, Total owner’s equity, Debt on equity, Industry Average - 2016 - 2017 - 2018 - 2019 - 2020 - Total debts (Billion) - 6,972 - 10,792 - 11,094 - 14,968 - 14,785 - Total owner’s equity (Billion) - 22,405 - 23,873 - 26,271 - 29,731 - 33,647 - Debt on equity - 0.31 - 0.45 - 0.42 - 0.50 - 0.44 - Industry Average - 1.02 - 1.02 - 1.02 - 1.02 - 1.02 Chart 18: The chart shows Vinamilk’s Debt on equity from 2016 to 2020 • Explain: Vinamilk's total debt accounted for 31% of its total equity in 2016; 45% in 2017; 42% in • 2018; 50% in 2019 and 44% in 2020 Trending: The ratio tends to increase sharply in 2016-2017 and 2018-2019 => not good for the company But it's decreased in 2017-2018: good for company much lower than the industry average • => Should continue to maintain this level Comparing: Vinamilk’s Debt on equity from 2016 to 2020 are much lower than the industry average • => Good for company, should continue to maintain this level Recommendation: Debt on equity ratio is more stable than i.a The company's financial balance is very good But Vinamilk needs reduce total debt to a minimum - 4.2.3.3 Interest coverage ratio: Measuring the enterprise’s ability to pay interest from profit The high ratio shows that the company can pay interest when it’s due - - Interest coverage ratio = - Table 16: EBIT, Interest amount, Interest coverage ratio, Industry Average - - 2016 - 2017 - 2018 - 2019 - 2020 - EBIT (Billion) - 11,340 - 12,315 - 12,169 - 12,982 - 13,827 - Interest amount (Billion) - Interest coverage ratio - - 46.5 - 243.87 - 29 - 418.36 - 51 - 236.9 - 108.8 - 119.3 - 143.8 - 96.14 - Chart 19: The chart shows Vinamilk’s interest coverage ratio from 2016 to 2020 - Explain: EBIT is 234.87 times the company's interest expense in 2016; 418.36 in 2017; 236.9 in 2018; 119.3 in 2019; 96.14 in 2020 Over the years, earnings before interest and taxes were enough to pay off loan interest when it came due Trending: In 2017, the index nearly doubled compared to 2016 But it gradually decreased and went - very low until 2020 only 95 times In 2017, the company operated very efficiently Revenue increased slightly, but interest expense decreased by half In the following years to 2020, although revenue increased, interest expenses increased too quickly A part of the company has more long-term loans, causing the solvency ratio to decrease Recommendation: Continue to maintain because although many businesses have debts, they are still - able to pay interest because most debts not generate interest such as: payables to sellers, taxes, payable to employees Pay down long-term debt because long-term debt has a higher interest rate - 4.2.4 The profitability ratios - 4.2.4.1 Gross profit margin: Evaluating the profit level after minus the cost of goods sold - The higher ratio is better - Gross profit margin = - Calculate and draw line chart: The Table 17 and chart 20 below give information about the Gross profit margin of Vinamilk Company and the industry average from 2016 to 2020: - Table 17: Gross Profit, Net Revenues, Gross Profit Margin, Industry Average - Years - 2016 - 2017 - 2018 - 2019 - 2020 - Gross Profit (billion) - 22,336 - 24,234 - 24,611 - 26,572 - 27,669 - Net Revenues (billion) - 46,794 - 51,041 - 52,562 - 56,318 - 59,636 - Gross Profit Margin - 47.73% - 47.48% - 46.82% - 47.18% - 46.4% - Industry Average - 34.34% - 34.34% - 34.34% - 34.34% - 34.34% - - Chart 20: The chart shows Vinamilk’s Gross profit margin from 2016 to 2020 - Explain: The gross profit of Vinamilk accounted for 47.73% of the net revenues in 2016; 47.48% in 2017; 46.82% in 2018; 47.18% in 2019 and 46.4% in 2020 - Trending: Through the chart, we can conclude that the trend of this ratio from 2016 to 2018 decreases so it is not good for the firm But from 2018 to 2019, the trend increases from 46.82% to 47.18%, which is good for the firm The trend from 2019 to 2020 declines from 47.18% to 46.4% - Comparing: Although there are fluctuations in annual the ratio of years is higher than the industry average too much - Recommendation: Through chart 20, we see that the net profit margin of the business tends to decrease but not significantly => The enterprise maintains a good stability while continuing to expand both domestic and foreign markets Businesses should keep this form and develop more in the coming years especially the years still affected by the Covid-19 pandemic such as: • PR, advertising for products – especially products such as liquid milk, yogurt, cheese, => boosting • • - inventory Stock up on input materials such as whole milk powder, find suppliers of materials with better prices => limit input price hikes due to the pandemic Continue to expand foreign markets (be careful in exporting, PR for products, ) 4.2.4.2 Operating profit margin: Measure the percentage of sales earned after expenses are subtracted Showing one VND of net revenues can create how much profit - - EBIT = Financial expenses (interest) + Net income before Tax - - Operating profit margin = - - Calculate and draw line chart: The Table and chart below give information about the Operating profit margin of Vietnam Dairy Products Joint Stock Company and the industry average from 2016 to 2020 - Table 18: Financial expenses (interest), Net income before Tax, EBIT, Net revenue, Operating profit margin, Industry Average - Years - 2016 - 2017 - 2018 - 2019 - 2020 - Financial expenses (interest) (billion) - 47 - 29 - 51 - 109 - 144 - Net income before Tax (billion) - 11,238 - 12,229 - 12,052 - 12,796 - 13,519 - EBIT (billion) - 11,285 - 12,258 - 12,103 - 12,905 - 13,663 - Net revenue - 46,794 - 51,041 - 52,562 - 56,318 - 59,636 - Operating profit margin - 24.12% - 24.02% - 23.03% - 22.91% - 22.91% - Chart 21: The chart shows Vinamilk's Operating profit margin from 2016 to 2020 - Explain: The earning before interest and Tax (EBIT) accounted for 24.12% of the net revenue in 2016; 24.02% in 2017; 23.03% in 2018; 22.91% in 2019 and 2020 - Trending: Through the chart, it is clear that we can conclude that the trend of ratio from 2016 to 2019 decreases, especially, the trending declines significantly from 2017 to 2018, which is not good for the firm The trend from 2019 to 2020 has not changed, is 22.91% - Comparing: Although the annual rate decreases However, this ratio of years is higher than the industry average The operating profit margin accounts for a high proportion compared to the industry average - - Recommendation: Operating profit margin accounting for a relatively high proportion, although it tends to decrease over the years, but it is still higher than the industry average, showing that the enterprise is operating efficiently keep investing but has tight control in the future - 4.2.4.3 Net profit margin: the percentage of profit that the company can create when compared with net revenue Net profit margin = - - Calculate and draw line chart: The Table 19 and chart 22 below give information about the Net profit margin of Vietnam Dairy Products Joint Stock Company and the industry average from 2016 to 2020: - Table 19: Net income after Tax, Net revenue, Net profit margin, Industry Average - Years - 2016 - 2017 - 2018 - 2019 - 2020 - Net income after Tax (billion) - 9,364 - 10,278 - 10,206 - 10,554 - 11,236 - Net revenue (billion) - 46,794 - 51,041 - 52,562 - 56,318 - 59,636 - Net profit margin - 20.01% - 20.14% - 19.42% - 18.74% - 18.84% - Industry Average - 17.54% - 17.54% - 17.54% - 17.54% - 17.54% ... - Operating profit margin = - - Calculate and draw line chart: The Table and chart below give information about the Operating profit margin of Vietnam Dairy Products Joint Stock Company and the... information about the Net profit margin of Vietnam Dairy Products Joint Stock Company and the industry average from 2016 to 2020: - Table 19: Net income after Tax, Net revenue, Net profit margin, Industry...I INTRODUCTION 1.1 About the company Table 01- General information of Vinamilk VINAMILK Full name VIETNAM DAIRY Joint Stock Company ( VINAMILK ) Address Tan Xuan Street, Tan