MODULE: FINANCIAL MANAGEMENT

ANALYSIS OF FINANCIAL SITUATION AT

MASAN CONSUMER CORP

Instructor: Dr. Nguyen Thi Thu Den

Students: Le Phuoc Thinh
Tran Ngo Thi Dieu
Nguyen Thanh Dat
Nguyen Hoang Nhung
Tran Anh Vu

ĐÀ NẴNG – 13/01/2023
ĐÀO TẠO NGUỒN NHÂN LỰC CHẤT LƯỢNG CAO PHỤC VỤ PHÁT TRIỂN BỀN VỮNG THÀNH PHỐ ĐÀ NẴNG VÀ CHUYỂN ĐỔI SỐ QUỐC GIA

TABLE OF CONTENT
• Introduction about the company – Masan Consumer Corp.
+ General information.
+ Vision, mission, goal.
+ Organizational structure.
+ Business areas.
+ The impact of business environment.
• Analysis of financial situation at Masan Consumer Corp.
+ Analysis of blocks and indexes.
+ Parametric analysis.
+ Financial statement footnotes.
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INTRODUCTION ABOUT THE COMPANY

• Company name: Masan Consumer Corp.
• Abbreviations: Masan Consumer.
• As one of Vietnam's biggest manufacturers of consumer products.
• Trading code: MCH.
• Headquarters: 39 Le Duan street, Ben Nghe ward, District 1, HCM city.
• Currently, the business produces and distributes:
+ Food.
+ Beverage.
+ Home-care products.
+ Others.

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VISION, MISSION AND GOAL

❖ Vision
• Leading consumer products corporation in Vietnam in terms of sales, revenues, and brand recognition.
• Meeting the demands of 100 million Vietnamese customers.
• Attracts top talent, is regarded as the greatest workplace in Vietnam, and represents the excellence and
national pride of Vietnamese people.
❖ Mission
• “We work to better Vietnamese people's material and spiritual lives every day”.
❖ Goal
• Masan Consumer owns 12 brands that are No. 1 in various areas of consumer goods.
• Over 20%/year on average will be added to income between 2020 and 2025.
• By 2025, rank among the top three workplaces in Vietnam.

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COMPANY STRUCTURE DGD in charge of commerce

DGD of Organizational Capacity Development

DGD of Supply Capability Development

Control Board
DGD Acting Director of Operations

General Meeting of Shareholders DGD of Human Resources

DGD in charge of IT
Administrative Council General Director
Senior Product Development Director – Acting
Head of R&D Department

Finance director

Chief Lawyer Compliance Director

(DGD: Deputy General Director)
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BUSINESS AREAS

• Food trading, the purchase and sale of non-alcoholic drinks, mineral water, home care goods, the
organization of commercial introduction and promotion, and associated architectural and technical
consultancy services are the company's major operations.

❖ Brands with more than VND 2,000 billion in revenue in 2021:

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THE IMPACT OF BUSINESS ENVIRONMENT

• Masan Consumer's business prospects are directly linked to Vietnam's economic prospects.
• Impact of the Covid-19 pandemic.
• Strong competition for market share.
• Masan Consumer's costs may fluctuate.
• Masan Consumer depends on its ability to maintain hiring or retention practices for qualified staff
suitable for key management positions.
• Depends on available distribution network.
• Revenue depends on brand image.
• The company may not be successful in developing new products.
• Risk of product contamination.

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ANALYSIS OF BLOCKS AND INDEXES

Analysis of blocks Analysis of indexes
ASSET 2019 2020 2021 2019 2020 2021
Cash and cash equivalents 10.7% 15% 43.1% 100% 174% 593%
Short-term financial investments 0.94% 0.8% 0.6% 100% 109% 87%
Current receivables 11.7% 13.8% 23.4% 100% 146% 293%
Inventories 5.71% 7.2% 7.5% 100% 157% 193%
Current asset 29.3% 37.2% 74.7% 100% 158% 375%
LONG – TERM ASSET 70.7% 62.8% 25.3% 100% 110% 52.7%
Non-current receivables 43.6% 34.4% 0.7% 100% 98% 2.41%
Fixed assets 20.3% 20.7% 18.5% 100% 126% 134%
Real estate investment 0% 0.1% 0% 100% - -
Long-term investment 1.22% 1.0% 0.8% 100% 100% 100%
Other long-term investment 2.74% 4.9% 4.1% 100% 224% 221%
TOTAL ASSET 100% 100% 100% 100% 125% 148%

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ANALYSIS OF BLOCKS AND INDEXES

Analysis of blocks Analysis of indexes
LIABILITIES 2019 2020 2021 2019 2020 2021
Trade creditors 5.37% 4.6% 5.2% 100% 106% 143%
Payable to employees 0.002% 0.07% 0.04% 100% 3863% 2799%
Short-term borrowings 24.9% 26.1% 24.6% 100% 130% 146%
Other payable 0.09% 0.15% 0.18% 100% 209% 281%
Short-term liabilities 39.4% 39.9% 39.3% 100% 140% 164%
Long-term liabilities 1.56% 4.13% 4.35% 100% 331% 413%
OWNERS' EQUITY
Paid-in capital 35.3% 28.5% 24.1% 100% 101% 101%
Share premium 17.4% 14.5% 11.8% 100% 104% 100%
Undivided Profit 15.8% 18% 22.6% 100% 141% 210%
Total owners’ equity 60.61% 55.9% 56.3% 100% 115% 137%
TOTAL LIABILITIES AND OWNERS'
100% 100% 100% 100% 125% 148%
EQUITY
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Analysis of blocks Analysis of indexes

ANALYSIS OF BLOCKS AND INDEXES
2019 2020FROM THE INCOME
2021 2019 STATEMENT
2020 2021
Sales 100.0% 100.0% 100.0% 100% 126% 147%
Revenue deductions 3.3% 2.7% 1.2% 100% 103% 52%
Net revenue 96.7% 97.3% 98.8% 100% 126% 150%
Cost of goods sold 57.0% 57.5% 57.5% 100% 127% 152%
Gross profit 39.8% 39.8% 41.3% 100% 125% 148%
Income from financial activities 3.1% 3.0% 2.5% 100% 122% 116%
Financial activities expenses 1.2% 1.3% 0.9% 100% 131% 107%
- Interest cost 1.2% 1.1% 0.8% 100% 121% 96%
Share in profits of associates 0.04% 0.05% 0.05% 100% 167% 167%
Selling expenses 15.1% 16.3% 16.7% 100% 135% 159%
General and administrative expenses 4.1% 3.6% 3.8% 100% 109% 131%
Operating profit 22.6% 21.7% 22.5% 100% 120% 142%
Other income 0.008% 0.009% 0.018% 100% 133% 325%
Other expenses -0.11% -0.07% -0.03% 100% 80% 35%
Other profit 0.10% 0.06% 0.01% 100% 76% 13%
Net profit before tax 22.5% 21.6% 22.5% 100% 120% 143%
Current corporate income tax expense 2.1% 3.5% 3.4% 100% 214% 239%
Deferred corporate income tax expense -0.1% -0.3% -0.3% 100% 428% 482%
Net profit after tax 20.5% 18.4% 19.4% 100% 113% 136%
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ANALYSIS OF FINANCIAL INDEXES FROM CASH FLOW STATEMENT

Component 2021 2020

Net revenue 27,773,635,217,733 23,342,734,481,397
Cash flows from operating activities 5,816,347,040,287 4,678,338,462,250
Cash flows from operating activities / Net revenue
0.209 0.200

Purchase and construction of fixed assets and other long-

(959,414,551,044) (1,469,923,979,055)
term assets
Adjusted interest expense 228,945,751,950 286,953,132,557
Free Cash Flow 4,858,755,053,923 3,211,199,029,362
Cash flows from investing activities
2,099,670,030,277 (5,211,545,280,965)

Cash flows from financing activities

1,285,390,373,787 2,159,185,983,349

Net decrease/(increase) in cash and cash equivalents

13,013,125,962,658 3,818,494,309,952

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LIQUIDITY ANALYSIS RATIOS

Masan Consumer Industry average

Ratios Formula 2018 2019 2020 2018 2019 2020

Current asset
Current ratios (Rc) (dong) 0.8 0.9 1.9 1.22 1.25 1.46
Current liabilities

Quick ratios (Rq) (dong) Current asset − inventory 0.6 0.8 1.7 0.43 0.45 0.63
Current liabilities

Net credit sales

Receivable Turnover (round) 57.6 62.28 55.54 12.13 15.06 14.24
Average accounts receivable

Day’s sales receivables (day) 360 6.25 5.78 6.48 30.08 24.24 25.64
Receivable turnover

Cost of Goods sold

Inventory turnover (round) 9 8.9 7.8 4.24 4.69 4.48
Average Inventories

Day’s sales in inventory 360

40 40.44 46.15 86.18 77.75 81.53
(day) Inventory turnover

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FINANCIAL LEVERAGE

Masan Consumer Industry Average

Ratios Formula 2019 2020 2021 2019 2020 2021

Total debt
Debt – equity ratio (RD/E ) 0.65 0.79 0.78 0.82 1.44 1.23
Total equity

Total debt ratio (RD) Total assets − Total equity

0.39 0.44 0.44 0.45 0.59 0.55
Total assets

Long-term debt to equity Total long − term debt

0.025 0.069 0.072 0.018 0.039 0.038
ratio Shareholder ′ s Equity

EBIT
Interest coverage ratio 18.7 17.09 24.85 14.86 13.77 16.75
Total interest expense

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PROFITABLE RATIOS
Masan Consumer Industry Average
Ratio Formula
2019 2020 2021 2019 2020 2021
Net income
Profit margin (%) 43.04 42.49 42.45 28.80 26.45 25.35
Sales
Operating Profit Margin Net profit
23.50 22.47 22.81 14.91 13.90 14.18
(%) Net revenue

Net profit margin (%) Net profit

21.25 19.17 19.67 13.71 12.13 12.59
Sales

Total asset turnover Net income 0.99 1.01 1 0.84 0.91 0.9
Total assets

ROA (%) Net profit

21.46 19.65 19.53 9.85 6.87 8.73
Total asset

Net profit
ROE (%) 34.58 33.87 34.79 18.00 14.46 20.32
Equity

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MARKET VALUE RATIOS

Masan Consumer Industry Average

Ratios Formula
2019 2020 2021 2019 2020 2021
Earning Per Share Net income − Dividend payments
(EPS) weighted average shares outstanding 6.25 6.40 7.66 4.26 3.28 4.35

Price to Earning Ratio Share Price

11.51 14.53 15.22 8.17 11.16 13.17
(P/E) Earning per share
Price-To-Book Ratio Market price per share
4.09 4.62 4.9 2.45 3.69 3.56
(P/B) Book value per share

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CONCLUSION
• Strict financial management strategy.
• Ensure effective debt collection policy.
• Improve research and product development activities.
• Optimizing sales and marketing costs.
• Improved ability to pay.
• Improve the efficiency of inventory management.

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