Thesis
Financial management and analysis of financial indicators of Vinamilk dairy company
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INDEX
INTRODUCTION 2
CHAPTER I: COMPANY INTRODUCTION 3
1.1 General introduction: ........................................................................
1.2 History of formation ..........................................................................
1.3 Company activities:......................................................................
1.3.1. Business lines ..........................................................................
1.4. Theorem of future company development ................................... 1.5. Vinamilk's organizational structure: .............................................. CHAPTER II: THEORETICAL BASIS OF
FINANCIAL ANALYSIS ..............................................................
2.1. Introduction to financial reports................................................................
2.2. Some basic issues of financial analysis. .......................... 2.2.1 . Concept of financial analysis: ..............................................
2.2.2. Purpose and significance of financial statement analysis: ........... 2.2.3. Functions of financial analysis. ......................................
2.2.4. Factors affecting Corporate Finance............ 2.3. Financial ratio groups................................................................. CHAPTER III: CURRENT SITUATION
VINAMILK COMPANY FINANCE......................................................
3.1. Preliminary analysis of production and business performance results ..
3.1.1. Business results analysis......................................................
3.1.2. Asset structure analysis ........................................................
3.1.3. Analysis of capital structure......................................................
3.2. Profitability ratio group: ................................................. CHAPTER IV- SOME RECOMMENDATIONS & SOLUTIONS . ...............
Page
INTRODUCE
Our country's economy is growing, especially after joining the WTO, the market has become more competitive. (Companies only exist when they operate effectively). In the increasingly dominant trend of equitization, not only experts but also people can invest in any joint stock company, especially after the stock market became popular. Some companies only receive a lot of investment when they operate effectively. So how can investors know which company they should invest in to make a profit and avoid risks? That is the company's financial management.
Financial management is an important part of business administration. All business activities affect the financial situation of the enterprise, conversely, good or bad financial situation has an impact on promoting or inhibiting the business process. Therefore, to serve the management of business activities effectively, managers need to regularly analyze the financial situation for the future. Because through calculation, financial analysis tells us the strengths and weaknesses of the business's production and business activities as well as the potentials that need to be promoted and the weaknesses that need to be overcome. From there, managers can identify the causes and propose solutions to improve the financial situation as well as the business situation of their unit in the future. For a business or any business organization, whether large or small, when operating, they all want to operate effectively to earn the most profit and achieve the goals set by the company. To do that requires many factors such as capital, human resources, technology, etc. One of the things that needs to be done is to analyze the financial statements of the enterprise. For these reasons, the G7 group decided to delve into the analysis of financial indicators and this is also the topic of the presentation...
With the guidance of Mr. Nguyen Tan Minh, group G7 completed this essay. In the process of research, there are inevitably shortcomings. We look forward to receiving comments from you and your friends.
CHAPTER I: COMPANY INTRODUCTION
1.1 General introduction:
Vietnam Dairy Products Joint Stock Company (Vinamilk) was established on the basis of Decision No. 155/2003QD-BCN dated October 1, 2003 of the Ministry of Industry on converting the State-owned enterprise Vietnam Dairy Products Company into Vietnam Dairy Products Joint Stock Company. The Company's Business Registration Certificate No. 4103001932 was issued by the Department of Planning and Investment of Ho Chi Minh City on November 20, 2003. Before December 1, 2003, the Company was a State-owned enterprise under the Ministry of Industry. The Company's current registered charter capital is
1,590 billion VND, of which State shareholders account for 50.01% of equity capital, internal shareholders account for 13.10% and external shareholders account for 36.89%
- Full name: Vietnam Dairy Products Joint Stock Company
- Abbreviation: VINAMILK
- Logo:
- Head office: 184 - 188 Nguyen Dinh Chieu, District 3, Ho Chi Minh City
- Phone: (08) 9300 358
- Fax: (08) 9305 206 – 9305 202 – 9305 204
- Web site: www.vinamilk.com.vn
- Email: vinamilk@vinamilk.com.vn
Current charter capital of Vietnam Dairy Products Company: 1,590,000,000,000 VND
Charter Capital Structure as of October 31, 2005 is:
Ownership composition Number of shares owned Percentage (%)
- State shareholder 9,615,000 60.47%
- Internal shareholders 2,158,188 13.57%
- Outside shareholders 4,126,812 25.95%
Total equity 15,900,000 100.00
1.2 History of formation
1976: The predecessor is the Southern Milk and Coffee Company, under the General Food Corporation, with 6 affiliated units: Thong Nhat Milk Factory, Truong Tho Milk Factory, Dielac Milk Factory, Bien Hoa Coffee Factory, Bich Chi Powder Factory and Lubico.
1978: The company was transferred to the Ministry of Food Industry for management and the company was renamed the United Enterprise of Milk, Coffee and Confectionery I.
1988: First time introducing powdered milk and nutritional powder products for children in Vietnam.
1991: First time introducing UHT milk and yogurt products to the Vietnamese market.
1992: The United Enterprise of Milk Coffee and Confectionery I was officially renamed Vietnam Dairy Company and came under the direct management of the Ministry of Light Industry. The company began to focus on the production and processing of dairy products.
1994: Hanoi Milk Factory is built in Hanoi. The construction of the factory is part of the strategy to expand, develop and meet the market demand in Northern Vietnam.
1996: Joint venture with Quy Nhon Frozen Joint Stock Company to establish Binh Dinh Milk Joint Venture Enterprise. This joint venture facilitates the Company to successfully penetrate the Central Vietnam market.
2000: Can Tho Milk Factory was built in Tra Noc Industrial Park, Can Tho City, with the aim of better meeting the needs of consumers in the Mekong Delta. Also during this time, the Company also built a Logistics Enterprise located at: 32 Dang Van Bi, Ho Chi Minh City.
2003: Officially converted into a Joint Stock Company in December 2003 and changed its name to Vietnam Dairy Products Joint Stock Company to suit the Company's form of operation.
2004: Acquired Saigon Milk Joint Stock Company. Increased the Company's charter capital to VND 1,590 billion.
2005: Purchased the remaining shares of the joint venture partner in Binh Dinh Milk Joint Venture Company (then called Binh Dinh Milk Factory) and inaugurated Nghe An Milk Factory on June 30, 2005, located in Cua Lo Industrial Park, Nghe An Province.
* Joint venture with SABmiller Asia BV to establish SABMiller Vietnam Joint Venture Company Limited in August 2005. The first product of the joint venture under the Zorok brand was launched in the market in early-mid 2007.
2006: Vinamilk was listed on the Ho Chi Minh City Stock Exchange on January 19, 2006, at that time the State Capital Investment Corporation held 50.01% of the Company's charter capital.
* Opened An Khang Clinic in Ho Chi Minh City in June 2006. This is the first clinic in Vietnam managed by an electronic information system. The clinic provides services such as nutrition consultation, gynecological examination, pediatric consultation and health examination.
* The dairy farm program was initiated with the acquisition of Tuyen Quang Dairy Farm in November 2006, a small farm with a herd of about 1,400 dairy cows. This farm was also put into operation immediately after the acquisition.
2007: Acquired 55% controlling stake in Lam Son Dairy Company in September 2007, headquartered in Le Mon Industrial Park, Thanh Hoa Province.
Currently: Expanding to international markets and nationwide.
1.3 Company operations:
Industry, business lines and main products: production and trading of canned milk,
Milk powder, nutritional powder, cakes, fresh milk, soy milk, soft drinks and products
from other milk. In addition, Vinamilk also trades in technological foods, equipment
spare parts, supplies, chemicals, raw materials; real estate business, real estate brokerage
production; warehouse and wharf business; automobile transportation business, loading and unloading of goods; production
Export and purchase of wine, beer, beverages, processed foods, tea, roasted and ground coffee
filter - dissolve; and produce and trade in some other industries within the scope of
permitted by law
Company's organizational structure and operations: The company is headquartered at 36-38 Ngo
Duc Ke, District 1, Ho Chi Minh City. The company has 8 milk factories, including 3 factories and 1 workshop.
logistics industry in Ho Chi Minh City and 5 factories located in provinces such as Dong Nai, Can Tho,
Quy Nhon, Nghe An, Hanoi.
1.3.1. Business lines
Vietnam Dairy Products Joint Stock Company (“Company” or “Vinamilk”) was initially established under Decision
Decree No. 420/CNN/TCLD dated April 29, 1993 on the type of State-owned enterprise. Date 1
In October 2003, the Company was equitized according to Decision No. 155/2003/QD-BCN of the Ministry of Industry and Trade.
On November 20, 2003, the Company registered to become a joint stock company operating
according to the Law on Enterprises of Vietnam under Business Registration Certificate No. 4103001932 issued by the Department of Planning and Investment.
issued by the Ho Chi Minh City Planning and Investment Department. On January 19, 2006, the Company's shares
listed on the Ho Chi Minh City Stock Exchange under Listing License No.
42/UBCK-GPNY issued by the State Securities Commission on December 28, 2005.
The main activities of the Company and its subsidiaries include:
- Production and trading of canned milk, powdered milk, nutritional powder, cakes, fresh milk, soy milk
soy, soft drinks and other dairy products;
- Trading in food technology, equipment, spare parts, supplies, chemicals and raw materials.
- Real estate business, real estate brokerage; Warehouse and wharf business;
Cargo transportation; Cargo handling;
- Production and sale of wine, beer, beverages, processed foods, tea, roasted coffee–
grind – filter – dissolve;
- Production and sale of packaging, printing on packaging;
- Production and sale of plastic products.
- General clinic.
- Animal husbandry and cultivation, support services for animal husbandry and cultivation.
- Post-harvest services.
- Seed treatment for propagation.
1.4. Theorem of future company development
The Company's objective is to maximize shareholder value and pursue a business development strategy based on the following key elements:
* Consolidate, build and develop a system of extremely strong brands that best meet the needs and consumer psychology of Vietnamese consumers.
* Develop Vinamilk brand into the most scientifically reputable and trustworthy nutrition brand for all Vietnamese people through the strategy of applying scientific research on the specific nutritional needs of Vietnamese people to develop the most optimal product lines for Vietnamese consumers.
* Investing in expanding production and business through the market of healthy beverage products for consumers through the main brand VFresh to meet the rapidly increasing consumption trend for natural and healthy beverage products.
* Strengthening the distribution system and quality to gain more market share in markets where Vinamilk's market share is not high, especially in rural areas and small cities;
* Exploit the strength and reputation of the Vinamilk brand as a nutrition brand with “the most scientific and trustworthy reputation of the Vietnamese people” to capture at least 35% of the powdered milk market share within the next 2 years;
* Comprehensively develop a portfolio of milk and dairy products to target a wide range of consumers, while expanding to value-added products with high selling prices to increase the overall profit margin of the entire Company;
* Continue to improve the capacity of supply system management;
* Continue to expand and develop a proactive, strong and effective distribution system.
* Develop raw material sources to ensure a stable supply of fresh milk, high quality at competitive and reliable prices