TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN

VIỆN TIÊN TIẾN, CLC VÀ POHE

PROJECT
Topic:
ANALYZE A FIRM’S FINANCIAL STATEMENT, LONG TERM
FINACIAL PLANNING AND GROWTH, AND STOCK PRICE

Instructor : TS. Trần Thị Lan Phương

Full name : Lê Quỳnh Anh

Student code : 11200144

Class : Quản trị KDQT CLC62B

Hà Nội, tháng 11 năm 2022

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 Vinamilk
I. Overview of the company................................................................................................................3
1. Introduce........................................................................................................................................3
2. Key product....................................................................................................................................3
3. Market.............................................................................................................................................4
4. Wardrobe.......................................................................................................................................4
5. Oriented development (2022-2026)............................................................................................4
II. Balance sheet and income statement during the last three years.............................................6
1. Balance sheet................................................................................................................................6
2. Income Statement...........................................................................................................................7
III. Financial analysis..........................................................................................................................8
1. Short-term solvency......................................................................................................................8
2. Long-term solvency......................................................................................................................9
3. Asset management.....................................................................................................................10
4. Profitable ratio.............................................................................................................................11
5. Market value ratios......................................................................................................................12
IV. Performance Analysis................................................................................................................12
1. Asset analysis..............................................................................................................................12
2. Liabilities and owner equity analysis........................................................................................13
3. Income Statement Analysis.......................................................................................................14
V. Cash flow from Assets during the last 2 years............................................................................14
1. Year 2020.....................................................................................................................................14
2. Year 2021.....................................................................................................................................15
VI. General view about Vinamilk.....................................................................................................16

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 I. Overview of the company
1. Introduce
Vinamilk was founded in 1976
and has since become the leading
company in Vietnam in the processing
and supply of dairy products, ranking
among the Top 10 strong brands in
Vietnam. Operating under the subsidy
mechanism for more than ten years,
Vinamilk, like many other enterprises,
only produced according to plan, but
when entering the market economy,
Vinamilk quickly seized opportunities,
constantly innovated technology,
invested in infrastructure, and diversified
products to preparefor a new journey.
Vinamilk has constantly built a
distribution system to create apremise
for development from three factories
specializing in milk production, namely
Thong Nhat, Truong Tho, and
Dialect.Constantly expanding production and constructing new factories across the
country. Vinamilk has also established a broad and deep distribution network, which it
sees as the foundation of its long-term business strategy. Currently, the company has
over 180 distributors and over 80,000 retail locations across the country(Vinamilk, 2021)

Vinamilk's full name is Vietnam

Dairy Products Joint Stock
Company, established in 1976.
This is an enterprise specializing
in manufacturing, trading milk
and dairy products as well as
related equipment and
machinery in Vietnam.
Vinamilk is currently a leader of
enterprise in the field of
manufacturing dairy products in
Vietnam. Products of this brand
hold most of the market share
across the country, specifically as
follows:
Vinamilk's full name is Vietnam

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Dairy Products Joint Stock
Company, established in 1976.
This is an enterprise specializing
in manufacturing, trading milk
and dairy products as well as
related equipment and
machinery in Vietnam.
Vinamilk is currently a leader of
enterprise in the field of
manufacturing dairy products in
Vietnam. Products of this brand
hold most of the market share
across the country, specifically as
follows:
Vinamilk's full name is Vietnam
Dairy Products Joint Stock
Company, established in 1976.
This is an enterprise specializing
in manufacturing, trading milk
and dairy products as well as
related equipment and
machinery in Vietnam.
Vinamilk is currently a leader of
enterprise in the field of
manufacturing dairy products in
Vietnam. Products of this brand
hold most of the market share
across the country, specifically as
follows
VISION
To become a world grade brand in food and beverage industry, where people put all
their trust in nutrient and health products.
MISSION
To deliver the valuable nutrition to community with our respect, love and responsibility

2. Key product

Vinamilk is constantly introducing new products to the market to gradually

develop products with high profit margins and offer a diverse product portfolio to meet
the needs of a wide range of dairy industry customer segments Vinamilk's key products
include:

 Condensed milk: Longevity Milk, Southern Star.

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  Liquid milk: Vinamilk 100% Flex, ADM.
 Yogurt, ice-cream, cheese: Vinamilk yogurt - ice-cream- cheese; Susu, Probi,
and ProBeauty yogurt.

 Soy milk and beverage: GoldSoy soy milk, Vfresh, Icy. (Vinamilk - Vươn cao Việt
Nam - Vinamilk, 2021)

3. Market

Domestic market

Product of this brand hold most of the market share across the country,
specifically as follows(2021):

 54.5% domestic dairy market share

 40.6% market share of drinking yogurt
 84.5% market share of edible yogurt
 79.7% market share of condensed milk

Foreign market

Key export product

 Powder Milk  Soya drink

 Condensed product  Milk drink
 Cereal  Beverage
Today, Vinamilk’s products have been exported to more than 40 countries
worldwide, which include the South East Asian, the Middle East, Africa and other
countries.

4. Wardrobe

The Vietnamese dairy market is highly competitive. Besides domestic milk

producers such as Hanoimilk, Longthanhmilk or more recently TH Truemilk,…Vinamilk
also has to compete with imported products with big names like Abbott, Mead Johnson,
Nestlé, Dutch Lady... However, last year Vinamilk continued to maintain its leading
position with the overall market share for all dairy products at more than 50%

5. Oriented development (2022-2026)

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PRODUCT DEVELOPMENT AND EXPERIENCE FOR CONSUMERS

- Consolidating the leading position in Vietnam's dairy industry

- Speed up product research and develop new products, aiming to serve

comprehensive nutritional needs

- Put the consumer experience at the heart of developing Omni channel outreach and
distribution strategies

STARTING NEW BUSINESS OPPORTUNITIES

- Exploiting business opportunities in new markets through M&A, JV, or venture capital
activities

- Support and invest in start-up projects in line with the company's growth strategy

» Continue to strengthen traditional export markets and seek opportunities to shift

investment in local production

PROMOTE THE APPLICATION OF TECHNOLOGY IN SUSTAINABLE

AGRICULTURE

- Application of Internet of Things technology, big data, and automation and robotics,
thereby improving the transparency, exploitation efficiency, and biodiversity study of
farming, ranching, and mining operations

- Developing the largest international standard dairy farm system in Vietnam

» Implementation of international standards on sustainable development, increased use

of green energy, circular economy, protection of water and land resources

BECOME A DESTINATION OF FINANCIAL BANKS

- Continue to build a corporate culture towards innovation and creativity

- Set up working and training environment for employees new transformation

opportunity owner

II.

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 II. Balance sheet and income statement during the last three years
1. Balance sheet

  Balance Sheet Common-size Balance Sheet

All number in Million VND            
Period ending 31/12/2019 31/12/2020 31/12/2021 2019 2020 2021
ASSET            
A. Current assets 24,721,565 29,665,726 36,109,911 55.31% 61.25% 67.71%
1. Cash and cash
equivalents 2,665,195 2,111,243 2,348,552 5.96% 4.36% 4.40%
2. Short-term investments 12,435,744 17,313,680 21,025,736 27.82% 35.75% 39.42%
3. Short-term receivables 4,503,155 5,187,253 5,822,029 10.07% 10.71% 10.92%
4. Inventories 4,983,044 4,905,069 6,773,072 11.15% 10.13% 12.70%
5. Other current assets 134,427 148,481 140,523 0.30% 0.31% 0.26%
B. Non-current assets 19,978,308 18,766,755 17,222,493 44.69% 38.75% 32.29%
1. Fixed assets 14,893,540 13,853,808 12,706,599 33.32% 28.60% 23.83%
Tangible fixed assets 13,743,910 12,717,307 11,620,095 30.75% 26.26% 21.79%
Cost 26,227,436 27,037,635 27,645,343 58.67% 55.83% 51.84%
Depreciation -12,483,527 -14,320,328 -16,025,248 -27.93% -29.57% -30.05%
Intangible fixed assets 1,149,630 1,136,500 1,086,503 2.57% 2.35% 2.04%
2. Investment properties 62,018 59,997 60,050 0.14% 0.12% 0.11%
3. Long-term investments 986,676 973,441 743,862 2.21% 2.01% 1.39%
Total assets 44,699,873 48,432,481 53,332,403 100.00% 100.00% 100.00%
LIIABILITIES AND
OWNER EQUITY            
A. Liabilities 14,968,618 14,785,358 17,482,289 33.49% 30.53% 32.78%
I. Short -term liabilities 14,442,852 14,212,646 17,068,417 32.31% 29.35% 32.00%
1. Account payable 3,648,446 3,199,186 4,213,888 8.16% 6.61% 7.90%
2. Note payable 10,794,406 11,013,460 12,854,529 24.15% 22.74% 24.10%
II. Long-term liabilities 525,766 572,712 413,872 1.18% 1.18% 0.78%
B. Owner's equity 29,731,255 33,647,122 35,850,114 66.51% 69.47% 67.22%
1. Common stock and
paid in surplus 21,855,793 26,737,396 28,255,854 48.89% 55.21% 52.98%
2. Retained earnings 7,875,462 6,909,726 7,594,260 17.62% 14.27% 14.24%

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 2. Income Statement

Income Statement Common-size income statement

All number in Million VND

Period ending 2019 2020 2021 2019 2020 2021

Revenues 56,400,230 59,722,908 61,012,074 100.00% 100.00% 100.00%
Revenue deductions 82,107 86,622 92,909 0.15% 0.15% 0.15%

Net revenues 56,318,123 59,636,286 60,919,165 99.85% 99.85% 99.85%

Costs of goods sales 29,745,906 31,967,663 34,640,863 52.74% 53.53% 56.78%

Gross profit 26,572,217 27,668,623 26,278,301 47.11% 46.33% 43.07%

Financial income 807,317 1,581,093 1,214,684 1.43% 2.65% 1.99%

Financial expenses 186,970 308,569 202,338 0.33% 0.52% 0.33%

In which: Interest
108,825 143,818 88,799 0.19% 0.24% 0.15%
expenses
Share of (loss)/profit in
-5,717 3,882 -45,044 -0.01% 0.01% -0.07%
associates
Selling expenses 12,993,455 13,447,493 12,950,670 23.04% 22.52% 21.23%
General and administration
1,396,302 1,958,155 1,567,312 2.48% 3.28% 2.57%
expenses
Net operating profit 12,797,090 13,539,381 12,727,620 22.69% 22.67% 20.86%

Other income 249,446 212,386 422,823 0.44% 0.36% 0.69%

Other expenses 250,827 233,231 228,208 0.44% 0.39% 0.37%

Results of other activities -1,380 -20,845 194,616 0.00% -0.03% 0.32%

Share of associates and…

Earning before interest & tax 12,904,535 13,662,354 13,011,034 22.88% 22.88% 21.33%

Profit before tax 12,795,710 13,518,536 12,922,235 22.69% 22.64% 21.18%

Income tax expense - current 2,238,366 2,310,674 2,320,982 3.97% 3.87% 3.80%

Income tax benefit - deferred 3,012 -27,870 -31,282 0.01% -0.05% -0.05%

Net profit after tax 10,554,332 11,235,732 10,632,536 18.71% 18.81% 17.43%

Attributable to:
Equity holders of the
-26,844 136,795 100,059 -0.05% 0.23% 0.16%
Company
Non-controlling interest 10,581,176 11,098,937 10,532,477 18.76% 18.58% 17.26%

Basic earning per share 5,478 4,770 4,517 0.01% 0.01% 0.01%

Diluted earnings per share

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 III. Financial analysis
1. Short-term solvency

Liquidity ratios      
  2019 2020 2021
Current ratio 1.71 2.09 2.12
Quick ratio Times 1.37 1.74 1.72
Cash ratio 0.18 0.15 0.14

Current ratio
The current ratio measures a company’s ability to pay off short-term liabilities
with current assets. During the analysis period from 2019 to 2021, the current ratio of
the company is quite high, at more than 2 times. Specifically, this ratio has increased
over the above analysis period, from 1.71 times in 2009 to 2.12 times in 2021. With this
data, the bank can assured when making short-term loans to the company to
supplement working capital for the Company's operations.
Quick ratio
The quick ratio measures a company’s ability to pay off short-term liabilities with
quick assets. Vinamilk's quick ratio at the end of 2021 was 1.72 times, so if we remove
inventories, Vinamilk's ability to pay short-term debts is still very good. This ratio of the
company was all higher than 1 during the analysis period from 2019 to 2021, and the
lowest was 1.37 times in 2019. Vinamilk's quick ratio has decreased significantly
compared to the ratio. Compared with the industry average, Vinamilk's quick solvency is
also in the top group and tends to be stable for a long time.
Cash ratio
The cash ratio measures a company’s ability to pay off short-term liabilities with
cash and cash equivalents. This ratio of Vinamilk in a period from 2019 to 2021 was
0.18, 0.15, 0.14, respectively. Compared with the data on the industry average instant
ratio at the end of 2021, it can be said that Vinamilk has a very good loan balance,
enough to pay all short-term debts immediately. The company's instant solvency has
remained stable and good over the years.
In general, the company's short and long-term solvency are at a very good level
compared to the market and with the company's current debts (current ratio is above 2
in 2020 and 2021, quick ratio is always above 1) so that the company's ability to pay its
debts is well guaranteed. Although the company's debt is large, there is always a
surplus to meet debt repayment obligations when due, thereby reducing liquidity risk of
current and future liabilities. The financial position of the company is quite good.

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 2. Long-term solvency

Long-term solvency      
  2019 2020 2021
Total debt ratio 33.49 30.53 32.78
Equity multiplier 150.35 143.94 148.76
Percent
Debt-equity ratio 50.35 43.94 48.76
Long-term debt ratio 1.74 1.67 1.14
Times interest earned 117.5806111 93.99752465 145.5223032
ratio

Total debt ratio

The debt ratio measures the relative amount of a company’s assets that are

provided from debt. Vinamilk's debt ratio in the period from 2019 to 2021 ranged from
30.5% to 33.5%. Vinamilk's debt ratio over the years tends to be stable at less than
35%. This shows that the company has a policy of using debt at a reasonable and
stable level over time. Vinamilk's debt usage compared to other companies in the same
industry such as Hanoimilk is slightly below the industry average. This shows that the
company's financial autonomy is very good when its own capital ensures more than
70% of total assets and is less affected by fluctuations in market interest rates.
Long-term debt ratio
The long-term debt ratio represents the company's ability to pay off its long-term
debt for project investment in the coming year. The company's long-term debt to equity
ratio is very low, only 1.14% of equity at the end of 2021, and no more than 2% in the
whole period 2019-2021. This shows that the Company tends to use its own capital to
carry out investment activities to expand production and the company's debt is mainly
short-term debt. The company's short-term debt is lower than that of suppliers. This
shows the good financial ability of the company.
Times interest earned ratio
EBIT: Earing before interest and taxes of Vinamilk was almost unchanged over a
three year period at nearly 13 billion. This means that the company's business situation
is showing signs of slowing down. In the next coming years, the company needs to have
a product market expansion strategy to increase EBIT.
Moreover, because Vinamilk's loans are not much and profitability is very good,
the ratio of profit before tax and interest to loan interest of Vinamilk in the period of
2019-2021 are very high and higher than 100% in 2019 and 2021. The company's
ability to repay debt is very good and can be completely trusted.

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 In general, Vinamilk has a strategy of using its own capital in investment
activities rather than borrowing from banks. The company's short-term debt is also
mainly payable to suppliers. Vinamilk's financial capacity is very good and the company
has very little risk of leverage. But the excessive use of equity will affect the company's
ability to increase profits and distribute to shareholders. It is very safe to provide credit
to Vinamilk.
3. Asset management

Efficiency ratios      
  2019 2020 2021
Inventory turnover Times 5.66 6.47 5.93
Days of inventory on hand Days 64.48 56.45 61.52
Receivables turnover Times 16.43 15.6 14.26
Days of sales outstanding Days 22.21 23.4 25.59
NWC turnover Times 5.48 3.86 3.20

Fixed asset turnover Times 3.99 4.15 4.59

Total asset turnover Times 1.37 1.28 1.2
Equity turnover Times 2.01 1.88 1.75

Inventory turnover
Vinamilk's inventory turnover in 2020 increased much compared to 2019, 6.47
compared to 5.66, but in 2021 it decreased slightly at 5.93. This shows that Vinamilk's
product consumption rate is showing signs of slowing down compared to the company's
production rate. But this did not have much impact on the company's operations, and
was mainly caused by a sharp increase in ending inventory, as the company stockpiled
goods to meet production needs. This can be explained by the fact that Vinamilk has
invested in a new factory system under the ecological farm system in 2021 in Thanh
Hoa, Quang Ngai, Tay Ninh and thus increase milk production compared to previous
years at the same time as well as many orders at the end of the year. The frequent
change of inventory turnover over the years may be due to the Company's lack of good
management of its sales and production. However, the inventory turnover rate reported
and increased in the period 2008-2011 also shows that the Company is having a good
sales speed.
Day’s sale inventory
As inventory turnover of Vinamilk increased markedly in 2020 at 6.47 and then
fell to 5.93 in 2021, the Vinamilk’s day sale inventory was fluctuated over the period
from 2019 to 2021 at 64.48 days, 56.45 days, 61.52 days, respectively.
Receivables turnover

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 The average debt does not exceed 30 days, specifically in 2021 the receivables turnover
reached 14 rounds with 28 days of receivables turnover, which was slower than in 2019 of
16.43 rounds with 22 days of receivables turnover. The company boosted sales to reach the
revenue target of 60000 billion VND. It can be seen from Vinamilk's very good revenue growth
over the years while there is strong competition from domestic and foreign dairy firms. The
management of Vinamilk's receivables in comparison with other companies in the industry and
companies on the Vietnam stock exchange is evaluated at a good level.

NWC turnover

Working capital turnover determines the number of days a business completes a

business cycle. Vinamilk's working capital turnover in the period 2019-2021 was reduced
dramatically from 5.48 in 2019 to 3.2 in 2021. This is because the company's short-term assets
increased significantly in 2021 (46% increase compared to 2019) resulting in no growth in
capital turnover.

Fixed Asser turnover

The efficiency of using fixed assets on revenue or asset turnover of the company
increased steadily in the period from 2019 to 2021. This shows that Vinamilk manages and
invests its fixed assets very closely with a clear plan and calculates the benefits to the company
when making the investment. Comparing with the fixed asset utilization efficiency of another
dairy company in Vietnam, Hanoimilk in the period 2020-2021, which is 2.66 times in 2020 and
3.78 times in 2021, Vinamilk shows very good investment efficiency compared to other
companies in the industry.

4. Profitable ratio

Profitability ratios      
    2019 2020 2021
Gross profit margin  % 47.18 46.4 43.14
ROE % 37.79 35.02 30.31
ROA % 25.79 23.83 20.7

Profit margin

The company's core business has a very positive profit-to-net sales ratio, ranging from
43-47% in the period 2019-2021. Profit from business activities is always above 40% of
Vinamilk compared to other enterprises in the industry, which is very high. Although in the
period of 2019-2021, Vinamilk milk scandals about ingredients used to produce milk have
"problems", but revenue and profit from Vinamilk's business activities still grow very well. This
shows Vinamilk's solid position in the domestic dairy market and consumers' trust in the
company. In addition, a high profit rate like Vinamilk is very difficult to obtain in the current
difficult period of Vietnam.

ROE

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 The ratio of profit after tax on equity of Vinamilk decreased markedly from 37.8% in 2019
to 30.3% in 2021. However, compared with the overall coefficient of the whole industry and
listed companies on Vietnam's stock exchange. , Vinamilk's profitability was still quite good.

ROA

The ratio of profit after tax to total assets of Vinamilk in the period 2019-2021 was over
20% and in 2019 it was nearly 26%. This is a very impressive indicator even for Vietnamese
and international businesses, not to mention the company's long-term sustainability. Compared
to many businesses in the dairy and food business in Vietnam, this is an impressive return on
assets ratio. This shows that the Company has used its assets very well in bringing profits to the
Company.

5. Market value ratios

Profitability ratios      
    2019 2020 2021
P/E Times 19.17 17.8 17.14
P/B Times 6.82 6.76 5.04
Price-earning ratio

Earning per share measures the net income earned on each share of common stock.
The company's P/E ratio at the end of 2011 was 17.11 and during 2019-2021 was always above
17.0, the company's EPS in 2021 was VND 5,000 which was lower than 2020 with 6,110.
Vinamilk's P/E ratio is currently at a very high level compared to other companies. This is
because investors expect the company's growth in the future with its impressive profitability and
many ongoing investment projects.

Market to book ratio

Vinamilk's P/B ratio for the period 2019-2021 was at 5 - 6.8. Compared to the current
companies on the Vietnamese stock market, Vinamilk's P/B ratio is high for the reasons
mentioned above.

In general, the market is currently valuing Vinamilk's stock at a high level compared to
its current value as well as other companies in the market. The reason is the market's
expectations about the company's good development ability. The investment in Vinamilk shares
at this time is safe, but the return from dividends to investors is not high. However, the market
currently evaluates Vinamilk very well and the stock price has increased sharply over the years,
so the profit margin of Vinamilk shares is still quite good.

IV. Performance Analysis

1. Asset analysis

From the end of 2019, within just 2 years, the company's total assets increased by
nearly 10,000 billion VND. This is a huge growth for a company that has been operating for
many years and has a large scale like Vinamilk. This increase is due to the fact that the
company's short-term assets have grow dramatically, while long-term assets witnessed a

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gradual decline of 2000 billion VND . In its total assets structure, short-term assets accounted
for 67.71% at the end of 2021, a clear increase from 55.31%% of total assets in 2019.

Notably, short-term assets increased by 60% in 2011, with a total value of more than
35,000 billion VND, of which mainly short-term investment increased, reaching more than
20,000 billion VND. This means Vinamilk's investments are highly effective and bring great
profits to the company. Besides, the company's receivables and inventories also increased by
nearly 3,500 billion in 2021. This could be due to the fact that Vinamilk expand their market. The
increase in inventory and short-term receivables, along with the company's receivables forecast
as analyzed above,

Regarding the company's long-term assets, Vinamilk was declined slightly by 2,000
billion VND due to depreciation and the company virtually disn’t invest in new long-term assets.
The company's fixed assets, accounting for more than 75%%, long-term assets, have also fell
steadily and continuously over the years. In 2020, fixed assets fell by 1000 billion VND and in
2011 it was 1100 billion VND The decrease of fixed assets, mainly machinery and equipment,
shows that the company is in the stage of Vinamilk is in the stage of slowing down and there is
no need to boost production because there will be a surplus of goods.

2. Liabilities and owner equity analysis

The company's liabilities almost unchaged in 2020 and went up by nearly 3,000 bllion
dong in 2021. The proportion of long-term debt only accounts for nearly 4% of the company's
total liabilities, and accounts for a negligible proportion of the total capital because the company
mainly financed the project with equity. Current liabilities mainly include trade and other
payables and no debt. With this capital structure, interest expense is insignificant compared to
the company's size and revenue

Between 2019 and 2021, the company's equity accounted for more than 65% of total
capital, and increased steadily through the period. Compared to the end of 2019, the company's
equity increased by 6,000 billion VND. The company's equity ratio has always been above
200% of total debt in the period 20019-2021, showing that the company's ability to repay debt
and self-financing is very good. In 2020, the company issued new shares, increasing its capital
to nearly 4,000 billion VND. This capital increase will help the company have more resources to
carry out major development projects in the future, accelerate the growth of the company in the
coming time and ensure the company's operations against market risks. market during the
economic crisis. However, the retained earnings of Vinamilk almost unchanged at around 7,000
to 7,500 billion VND. From the analysis of the company's cash flow statement, it shows that
Vinamilk tends to self-finance the company's development rather than borrow from outside
sources, so the increase in equity Ownership is a good basis for the company to continue to
grow strongly as in the past period.

In general, the large proportion of equity in total capital together with insignificant debt
ratio shows that the stability of the capital used by the company is high and safe. At the same
time, the low financial leverage ratio shows that the company has not made good use of the tax
shield to increase profits for the company. The company's financial capacity is assessed as very
strong, there is no risk of lack of capital and can face very good liquidity risk.

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 3. Income Statement Analysis

2019 2020 2021 Tăng trưởng 2019-2021

Net revenue 7.15% 5.89% 2.15% 8.17%
Costs of goods sales 6.42% 7.47% 8.36% 16.46%
Earning before tax 6.17% 5.65% -4.41% 0.99%
EBIT 3.42% 6.46% -5.37% 0.74%

Net revenue from business activities in 2011 was VND 60,919 billion VND, up
8.17% compared to 2009. Revenue from business activities has always growth but not
significantly. Revenue from operating activities accounted for 80% of total revenue in
2021, and remained above 80% throughout 2019-2021. The company's financial and
other revenue is always lower, only nearly 20% in 2021 and 18% in 2020. This shows
that the company mainly focuses on its main business line and generates real profit
from the business. business rather than investing outside the industry much to seek
profit.
Accompanying the revenue growth is the growth in company profits. Profit before
tax in 2021 increased by just 1% compared to 2019. This due to the fact that the cost of
good sales and other expenses increased slightly. Note that in 2021, earning after tax
of Vinamilk even have a negative growth by 5.37%, from 11,325 billion VND in 2020 to
10,642 billion VND in 2021 . The increase in COGS significantly reduces the profit of the
enterprise in the period. The increase in the ratio of COGS to revenue proves that the
company is weakening in control of its production process when increasing the cost of
goods sold. These number prove that Vinamilk’s business got worse from 2020 to 2021
and they are having difficulty in growing it’s revenue and on a downward trend. In the
coming years, the company needs to have a new strategy and expand its market share
to foreign countries.
V. Cash flow from Assets during the last 2 years
1. Year 2020
Operating Cash Flow = EBIT + Depreciation – Tax = 13,662,354 + 14,320,328 –
(2,310,674-27,870) = 25,699,878 (million VND)
Net Capital Expenditure = Ending Net Fixed Assets – Beginning net Fixed Assets +
Depreciation = 12,717,307– 13,743,910 + 14,320,328)) = 13,293,725 (million VND)
Change in Net Working Capital = Ending NWC – Beginning NWC = (Current assets
2020 – Current liabilities 2020) - (Current assets 2019 – Current liabilities 2019) =
(29,665,726 - 14,212,646) – (24,721,565 - 14,442,852) = 5,174,367 (million VND)

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Cash Flow from Assets = OCF - NCE - Change in NWC = 25,699,878 - 13,293,725 -
5,174,367 = 7,231,786 (million VND)
Cash flow to creditors = Interest paid – Net new borrowing = 143,818 – (572,712 -
525,766) = 96,872 (million VND)
Cash flow to stockholders = Dividends paid – Net new equity = 136,795 –
(26,737,396 - 21,855,793) = -4,744,808 (million VND)
2. Year 2021
Operating Cash Flow = EBIT + Depreciation – Tax = 13,011,034 + 16,025,248 -
(2,320,982 + (-31,282)) = 26,746,582 (million VND)
Net Capital Expenditure = Ending Net Fixed Assets – Beginning net Fixed Assets +
Depreciation = 12,706,599 - 13,853,808 + 16,025,248 = 14,928,036 (million VND)
Change in Net Working Capital = Ending NWC – Beginning NWC = (Current assets
2021 – Current liabilities 2021) - (Current assets 2020 – Current liabilities 2020) =
(36,109,911 - 17,068,417) – (29,665,726 - 14,212,646) = 3,588,414 (million VND)
Cash Flow from Assets = OCF - NCE - Change in NWC = 8,230,132 (million VND)
Cash flow to creditors = Interest paid – Net new borrowing = 88,799 – (413,872 -
572,712) = 247,639
Cash flow to stockholders = Dividends paid – Net new equity = 100,059 –
(28,255,854 - 26,737,396) = -1,418,399 (million VND)
In general,
- Operating cash flow: From the number in 2020 and 2021, the OCF of Vinamilk
was almost unchanged. The reason of this situation could be a slowdown in
market development of Vinamilk in VietNam. In the next five years, Vinamilk
need to expand their market to foreign market in order to raise their EBIT.
- Net Capital Expenditure: Since Vinamilk is a company specializing in the
production of dairy products, they need to invest a large amount of money on
fixed assets than spending on R&D such as dairy farm, production machinery
and equipment,… In 2020 and 2021, the company spent more than 13,500 billion
VND in Capital.
- Change in net working capital: The change in net working capital of Vinamilk
decreased markedly from 5,174,367 to 3,588,414 million VND. However ,this
number was still very good and the business of the enterprise is stable, the
financial obligations of the company have been met and it is possible to invest in
other activities. Since the change in net working capital decreased, it means that
change in current assets is less than a change in current liabilities. This due to
the fact that Vinamilk was expanding therefore they have increased their short
term liabilities to meet the demand.

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 - Cash flow from Asset: Vinamilk always have positive cash flow on asset and
stable. This shows Vinamilk's excellent financial management ability
- Cash flow to creditors increased markedly to 247 billion VND in 2021, which was
2.5 times higher than 2020. Cash flow to stockholders was 3 times decrease
from 4700 billion VND to 1400 billion VND. This means Vinamilk is gradually
reducing debt from shareholders and using cash and cash equivalent.

VI. General view about Vinamilk

The financial analysis of Vinamilk in the period 2019-2021 has shown that
Vinamilk is a company with very good financial position, high liquidity, but in slightly
slowdown.
The company's revenue and profit growth meets the requirements of investors.
Good financial situation, suitable to provide credit. The company's risk of default
is very low.

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Citation
1. Vinamilk(2021)_Annual Report
2. Vinamilk(2019),(2020),(2021)_Financial Report
3. Vinamilk(2021) Trang thông tin điện tử tổng hợp CafeF
4. Vinamilk(2021)_VietStock
5. CFI Team(2022)_Financial Ratios_CFI Education

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