INTERNATIONAL

 UNIVERSITY,  VIETNAM  NATIONAL  UNIVERSITY  –  HCMC  

 

FINANCIAL  REPORT  OVER  5  YEARS  OF  

VINAMILK  COMPANY  
-----------------------------------------------------------------------------------------------

Instructor  
LÊ  ĐẶNG  THUỲ  TRANG  
Student  name  
HUỲNH  LAN  ANH    ..................................................    BAFNIU15040  
BÙI  TRIỆU  MINH    ...................................................    BAFNIU15007  
VÕ  NGỌC  GIA  NHƯ    ...............................................    BAFNIU15174  
 
 

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TABLE  OF  CONTENTS  
INTRODUCTION    .......................................................................................  3  

REPORT  SUMMARY    ..................................................................................  8  

           BALANCE  SHEET    ....................................................................................................  9  

             INCOME  STATEMENT    ............................................................................................  13  

             STATEMENT  OF  CASHFLOW    ..................................................................................  15  

RATIOS  ANALYSIS    ....................................................................................  18  

             SUMMARY  OF  THE  RATIOS  TABLE    .........................................................................  18  

             LIQUIDITY  RATIO    ..................................................................................................  19  

             ACTIVITY  RATIO    ....................................................................................................  21  

             PROFITABILITY  RATIO    ...........................................................................................  23  

             CAPITAL  MARKET  ANALYSIS  RATIO    .......................................................................  25  

             CAPITAL  STRUCTURE  ANALYSIS  RATIO    ..................................................................  26  

SUMMARY    ...............................................................................................  27  

APPENDIX    ................................................................................................  28  

REFERENCE    ..............................................................................................  30  

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I. INTRODUCTION

Introduction of Vinamilk:
• In recent years, dairy has become one of the fastest growing sectors in the food industry of Vietnam. Along with the common
trend of developing countries, Vietnam dairy's demand is significantly increasing as a crucial supplementary nutrition source.
• One of the most leading dairy companies in Vietnam, Vietnam Dairy Product Joint-stock Company (Vinamilk), has operated
over 30 years and gained noticeable successes in the Vietnamese fresh milk market.
• Vinamilk today is considered as a Vietnamese enterprise that can deliver value to consumer successfully by understanding
consumer needs, communicating and building long-term relationship between their brand and consumers.

1. Company profile

Ø Vinamilk is the biggest dairy company in Vietnam. Based on the UNDP 2007 Top 200 largest firms in Vietnam report, it is
also the 15th largest company in Vietnam.
o In 2010, Vinamilk became the first company in Vietnam to be included in the Forbes Asia's 200 Best Under A Billion list that
highlights 200 top small performing and mid - sized companies with annual revenue under $1 billion USD.
o Vinamilk was established in 1976 as the Southern Coffee-Dairy Company, with the mission to take over the operations of three
nationalized dairy factories in South Vietnam: Thong Nhat (belonging to a Chinese company), Truong Tho (formerly owned by
Friesland Foods), and Dielac (Nestle).
o In 1978, the company first renamed to United Enterprises of Milk Coffee Cookies and Candies I.
o In 1993, the company finally became the Vietnam Dairy Company.
o In 2003, following its IPO to the Ho Chi Minh Stock Exchange, the company legally changes its name to Vietnam Dairy
Products Joint Stock Company (Vinamilk).

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Ø The principal activities of the Vinamilk are produce and distribute condensed milk, powdered milk, fresh
milk, soya milk, yogurts, ice-cream, cheese, fruit juice, coffee and other products derived from milk.

Ø Vinamilk's main competitors are Dutch Lady Vietnam, a division of Friesland Foods, Nestle Vietnam, Abbott, Mead
Johnson, Friso and Nutifood.

Ø Dairy Sector in Vietnam is too attractive potential, with over 90 million people market and a high population growth rate, about
1.2% per year.

Ø Research firm The Nielsen released information, the consumer budget spent on consumer goods in urban areas is 32% milk.

Ø Euromonitor also estimates, Vietnam Dairy sales in 2015 reached $4 billion, an increase of approximately 23%.

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Ø Next few years, the dairy industry will continue to develop the potential when demand for this product per capita growth of
about 9% per year (equivalent to 18 liters per person per year in 2013 to 27- 28 liters / person per year in 2020), according to
the Vietnam Department of animal Husbandry.

Ø This figure is still lower than Singapore (45 liters) or Thailand (35 liters). The comparison of the potential between the
countries in the context of the tariff removed will be the driving force for world dairy companies to rethink the problem of
market access priorities post-TPP Vietnam.

2. Information about business areas, products and market

v Three principal business activities:
ü Producing, trading milk and dairy products.
ü Producing and trading beverage.
ü Breeding dairy cows, producing fresh milk material (in 100% capital owned 
companies).

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v Main market:
• Vinamilk products mainly serve Vietnam market with all lines of product. Domestic market takes account of 80% of
Vinamilk’s total revenue.
• For foreign market, the main markets of Vinamilk are Middle-East area, South-East Asia, and Africa. Main exported products
are powdered milk and condensed milk.
• For dosmetic market, milk prices in Vietnam have not been reduced by even influenced by the input costs (electricity, water,
food workers) and large exchange rate fluctuations. Expenses for advertising, exhibits, dealer discount are also seen as factors
that affect the price of milk. According to Euromonitor, the average cost of milk in Vietnam finished around $1.4 per liter, still
higher than the US $1.2 - $1.3 per liter in New Zealand and Australia.

3. Company vision:
Becoming a world grade brand in food and beverage industry, where people put all their trust in nutrient and health products.

Mission: Delivering the most valuable nutrition to community with fully respect, love and responsibility.

Core Values:

• Integrity: integrity, transparency and morals can be found in whatever we do.

• Will: dare to think, to do, to take responsibilities and to overcome challenges to 
realize the committed targets.
• Creativity: highly appreciate the passion, unique discovery and innovative solutions.
• Efficiency: focus on added-values in all our works, investments and business activities.
• Respectability: Self-respecting, equality and dedication to the growth of the company are what we really appreciate at
Vinamilk.
• Harmony of interests: Interests of Vinamilk are also the interests of its employees, partners, government and society.
• Openness: Constructive and straight communication is the base for our team to become more united and stronger.

4. Business philosophy:
Vinamilk desires to become one of the most favorite brands in every region and territory. Therefore, they keep in their mind
and their heart that the quality and innovation are always the most important companions. They also put customer-centered and commit
to respond to all their needs.

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5. Development strategy
Ø Vinamilk also known as a company do not hesitate to spend money on advertising, the cost increase over the years, from the
advertising, sales accounted for 1.85% (2011) up to 4.15% (9 months in 2015).
Ø This increase, on the other hand, also reflects the intense competition situation on the dairy market.
Ø The long-term development strategy of Vinamilk is to achieve the target revenue of USD 3 billion and become one of the 50
biggest dairy companies in the world in the period of 2012-2017.
Ø Within this period, there are 3 important areas that create the driving forces to help Vinamilk achieve its mission:

1. Developing strategic human resource management.

2. Maintaining and managing activities towards sustainable development
3. Planning and implementing Knowledge, Innovation, and Change management.

Ø Vinamilk’s strategic priorities are:

Assets investment plan:

• To achieve the target revenue of USD 3 billion in the period of 2012 – 2017.
• To maintain dividend payments to shareholders with an annual dividend rate of at least 30% on par value.
Customers:

• To be an enterprise with high customer satisfaction on product quality, affordable prices, and the leading distribution system in
Vietnam.
Corporate governance:

• To be an enterprise with accredited professional management and structure.

• To be an enterprise where the working environment enables employees to make out their best capabilities and contribution to
the common goals, thus being one of the best working places for employees.

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II. REPORT SUMMARY

Ø The main objective of this report is to evaluate financial health of Vinamilk under Vietnamese circumstances and give some
recommendations for creditors or banks, and investors.

Ø The report includes:

• The financial statements of Vinamilk in recently 5 years.
• The financial ratios of Vinamilk compared to NutiFood - a benchmark company of Vinamilk.
• Developing suggestions to loan and invest from the outside of creditors and invertors.

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BALANCE SHEET 2015 2014 2013 2012 2011

ASSETS

A. CURRENT ASSETS 16,731,875,433,624 15,522,309,519,016 13,018,930,127,438 11,110,610,188,964 9,467,682,996,094

I. Cash and cash equivalents 1,358,682,600,684 1,527,875,428,216 2,745,645,325,950 1,252,120,160,804 3,156,515,396,990

1. Cash 1,212,517,600,684 993,333,794,600 1,394,534,283,673 852,120,160,804 790,515,396,990

2. Cash equivalents 146,165,000,000 534,541,633,616 1,351,111,042,277 400,000,000,000 2,366,000,000,000

II. Short-term financial investments 8,668,377,936,330 7,467,962,935,026 4,167,317,622,318 3,909,275,954,492 736,033,188,192

1. Short-term investments 525,980,876,577 7,607,171,306,426 4,313,292,575,718 4,039,304,630,112 815,277,431,792

2. Provision for diminution in value of available for sale securities -72,195,440,247 -145,974,953,400 -145,974,953,400 -130,028,675,620 -79,244,243,600

3. Held to maturity investments 8,214,592,500,000 0 0 0 0

III. Account receivables - Short-term 2,685,469,151,432 2,728,421,414,532 2,728,421,414,532 2,246,362,984,001 2,169,205,076,812

1. Short-term trade accounts receivable 2,202,396,055,303 1,894,721,027,784 1,894,721,027,784 1,269,841,759,012 1,143,168,467,855

2. Short-term prepayments to suppliers 126,289,719,352 423,820,755,014 423,820,755,014 576,619,318,260 795,149,182,591

3. Other short-term receivables 359,995,340,900 417,266,719,643 417,266,719,643 403,754,490,615 232,805,433,796

4. Provision for short-term doubtful debts -3,211,964,123 -7,387,087,909 -7,387,087,909 -3,852,583,886 -1,918,007,430

IV. Inventories 3,810,095,215,771 3,217,483,048,888 3,217,483,048,888 3,472,845,352,518 3,272,495,674,110

1. Inventories 3,827,369,319,952 3,227,859,954,432 3,227,859,954,432 3,476,300,517,903 3,277,429,580,780

2. Provision for decline in value of inventories -17,274,104,181 -10,376,905,544 -10,376,905,544 -3,455,165,385 -4,933,906,670

V. Other current assets 209,250,529,407 160,062,715,750 160,062,715,750 230,005,737,149 133,433,659,990

1. Short-term prepayments 156,056,494,506 129,708,362,747 129,708,362,747 72,343,567,655 56,909,099,519

2. Deductible value added tax 53,192,367,873 13,465,035,833 0 0 74,772,661,634

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3. Value added tax to be reclaimed 0 0 25,468,115,542 154,118,437,302 0

4. Taxes and other receivables from state authorities 1,667,028 0 4,886,237,461 0 0

5. Other current assets 0 4,886,237,461 0 3,543,732,192 1,751,898,837

B. LONG-TERM ASSETS 10,746,300,510,728 10,247,828,541,941 9,856,483,929,198 8,587,258,231,415 6,114,988,554,657

I. Long-term receivables 20,898,388,770 7,395,303,671 736,666,667 0 0

1. Other long-term receivables 15,324,688,421 7,395,303,671 736,666,667 0 0

II. Fixed assets 8,214,134,749,497 8,890,084,022,717 8,918,416,535,379 4,477,059,115,159 5,044,762,028,869

1. Tangible fixed assets 7,795,345,501,520 7,548,188,780,138 7,849,058,771,126 4,223,443,459,603 3,493,628,542,454

Cost 13,059,721,039,709 11,782,649,084,362 11,147,267,493,199 6,512,875,316,427 5,301,826,836,260

Accumulated depreciation -5,264,375,538,189 -4,234,460,304,224 -3,298,208,722,073 -2,289,431,856,824 -1,808,198,293,806

2. Intangible fixed assets 418,789,247,977 538,207,032,321 531,485,413,625 253,615,655,556 256,046,089,531

Cost 553,684,246,456 691,495,740,057 690,742,242,273 387,180,023,184 383,409,370,867

Accumulated depreciation -134,894,998,479 -153,288,707,736 -159,256,828,648 -133,564,367,628 -127,363,281,336

3. Construction in progress 0 803,688,210,258 149,445,717,001 3,661,955,822,424 1,295,087,396,884

III. Investment properties 142,368,204,632 147,725,868,615 0 117,666,487,460 100,671,287,539

1. Cost 179,678,050,557 179,594,679,077 176,332,062,888 -20,952,098,370 117,666,487,460

2. Accumulated depreciation -37,309,845,925 -31,868,810,462 -26886345887 3,565,241,433,334 -16,995,199,921

IV. Long-term investments 940,365,020,223 700,375,068,841 318,308,294,039 284,428,762,040 846,713,756,424

1. Investments in associates, joint-ventures 397,130,670,931 325,220,122,483 284,629,299,345 217,944,646,507 205,418,475,253

2. Provision for diminution in value of long-term investments -4,740,126,948 -4,857,290,601 -10248632262 -14,355,884,467 -142,350,792,629

3. Held to maturity investments 536,596,000,000 0 0 0 0

4. Other long-term investments 11,378,476,240 380,012,236,959 43,927,626,956 80,840,000,000 783,646,073,800

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V. Other long-term assets 584,855,042,633 341,541,338,443 29,511,279,693 150,152,345,194 107,338,146,303

1. Long-term prepayments 417,329,840,261 183,505,250,834 171,151,838,315 41,073,978,122 25,598,314,795

2. Deferred income tax assets 25,180,187,314 150,793,168,409 115,300,622,640 108,001,947,072 80,643,411,508

3. Other long-term assets 0 7,242,919,200 8,660,335,975 1,076,420,000 1,096,420,000

VI. Goodwill 142,345,015,058 160,706,939,654 174,463,919,182 13,662,186,598 15,503,335,522

TOTAL ASSETS 27,478,175,944,352 25,770,138,060,957 22,875,414,056,636 19,697,868,420,379 15,582,671,550,751

LIABITITIES & OWNER'S EQUITY

A. LIABILITIES 6,554,260,196,767 5,969,901,577,449 5,307,060,807,329 4,204,771,824,521 3,105,466,354,267

I. Current liabilities 6,004,316,835,213 5,453,262,931,031 4,956,397,594,108 4,144,990,303,291 2,946,537,015,499

1. Short-term borrowings 1,475,358,507,208 1,279,525,014,840 178,943,692,147 0 0

2. Accounts payable – trade 2,193,602,809,261 1,898,529,392,924 0 2,247,659,149,802 1,830,959,100,474

3. Advances from customers 19,882,391,510 17,826,386,435 20,929,404,542 21,589,364,414 116,844,952,210

4. Taxes payable to State Treasury 215,807,811,014 502,643,076,304 456,725,904,986 333,952,869,847 287,462,890,828

5. Payables to employees 452,476,117,228 163,476,907,176 137,540,107,294 106,150,509,860 44,740,312,110

6. Accrued expenses 593,485,587,927 637,114,219,782 490,760,970,004 365,103,636,850 260,678,009,293

7. Bonus and welfare fund 405,464,362,576 598,428,618,781 361,477,571,902 406,397,724,109 59,478,925,315

8. Other payables 644,468,337,067 355,719,314,789 1,341,762,807,045 664,137,048,409 346,372,825,269

II. Long-term liabilities 549,943,361,554 516,638,646,418 75,454,828,818 59,781,521,230 158,929,338,768

1. Other long-term liabilities 2,814,519,233 8,192,561,774 5,036,159,560 0 92,000,000,000

2. Long-term borrowings 368,170,178,853 346,383,586,552 0 0 0

3. Deferred tax liabilities 89,034,118,250 84,711,303,600 0 0 0

4. Provision for severance allowances 87,325,705,000 77,333,769,500 69,583,293,250 59,635,777,000 66,923,897,268

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5. Unearned Revenue 2,598,840,218 17,424,992 835,376,008 145,744,230 5,441,500

B. OWNER'S EQUITY 20,692,566,222,418 19,680,282,615,855 17,545,489,315,423 15,493,096,595,858 12,477,205,196,484

Qwner's equtity 20,923,915,747,585 19,680,282,615,855 17,545,489,315,423 15,493,096,595,858 12,477,205,196,484

1. Share capital 12,006,621,930,000 10,006,413,990,000 8,339,557,960,000 8,339,557,960,000 5,561,147,540,000

2. Share premium 0 0 1,276,994,100,000 1,276,994,100,000 1,276,994,100,000

3. Treasury shares -5,388,109,959 -5,388,109,959 -5,068,507,959 -4,504,115,000 -2,521,794,000

4. Foreign exchange differences 8,329,599,322 -161,099,075 0 0 0

5. Investment and development fund 3,291,207,229,973 1,550,028,784,604 950,237,983,612 93,889,017,729 908,024,236,384

6. Financial reserves 971,689,582,340 971,689,582,340 833,955,796,000 588,402,022,008 556,114,754,000

7. Retained profits 5,391,795,573,082 7,157,699,467,945 6,149,811,983,770 0 4,177,446,360,100

8. Undistributed earnings 0 0 0 5,198,757,611,121 0

C. MINORITY'S INTEREST 231,349,525,167 119,953,867,653 22,863,933,884 0 0

TOTAL OWNER'S EQUITY AND LIABILITIES 27,478,175,944,352 25,770,138,060,957 22,875,414,056,636 19,697,868,420,379 15,582,671,550,751

 
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INCOME STATEMENT 2015 2014 2013 2012 2011

Total Revenue 40,222,599,525,948 35,703,776,176,355 31,586,007,133,622 27,101,683,739,278 22,070,557,490,766

Deduction from revenue 142,215,015,202 726,847,843,179 637,405,006,316 540,109,559,314 443,128,597,657

Net revenue 40,080,384,510,746 34,976,928,333,176 30,948,602,127,306 26,561,574,179,964 21,627,428,893,109

Cost of goods sold 23,817,969,568,510 22,668,451,134,488 19,765,793,680,474 17,484,830,247,188 15,039,305,378,364

Gross profit 16,262,414,942,236 12,308,477,198,688 11,182,808,446,832 9,076,743,932,776 6,588,123,514,745

Financial income 648,981,742,038 573,569,553,162 507,347,709,516 475,238,586,049 680,232,453,133

Financial expenses 162,840,107,939 81,697,752,419 90,790,817,490 51,171,129,415 246,429,909,362

In which: Interest expenses 31,277,451,964 39,581,737,758 104,027,048 3,114,837,973 0

Selling expenses 6,257,506,620,133 4,696,142,714,715 3,276,431,628,666 2,345,789,341,875 1,811,914,247,629

General and administrative expenses 1,232,722,578,041 795,365,066,390 611,255,506,250 525,197,269,346 459,431,997,199

Share of profit in associates 12,898,974,260 0 0 0 0

Net Operating profit 9,271,226,352,421 7,308,841,218,326 7,711,678,203,942 6,629,824,778,189 4,750,579,813,688

Other income 166,272,240,339 367,460,023,857 313,457,899,019 350,323,343,748 237,226,032,153

Other expense 70,357,536,375 122,819,758,563 58,819,862,034 63,006,276,113 8,813,950,770

Results of other activities 95,914,703,964 244,640,265,294 43,940,615,792 287,317,067,635 228,412,081,383

Share of profit in associates and jointly controlled entities 12,898,974,260 59,887,377,298 43,940,615,792 12,526,171,255 0

Profit before tax 9,367,141,056,385 7,613,368,860,918 8,010,256,856,719 6,929,668,017,079 4,978,991,895,071

Income tax expense – current 1,471,975,323,593 1,580,658,440,379 1,483,448,216,660 1,137,571,835,560 778,588,561,106

Income tax benefit – deferred 125,612,981,095 35,492,545,769 7,298,675,568 27,358,535,564 17,778,374,972

Net profit after tax 7,769,552,751,697 6,068,202,966,308 6,534,107,315,627 5,819,454,717,083 4,218,181,708,937

Attributable to:

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Minority interest -3,856,879,546 -604,730,533 -26,347,207 0 0

Equity holders of the Company 7,773,409,631,243 6,068,807,696,841 6,534,133,662,834 5,819,454,717,083 0

Basic earnings per share 5,837 6,068 7,839 6,981 7,717

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STATEMENT OF CASHFLOW 2015 2014 2013 2012 2011

I. CASH FLOWS FROM OPERATING ACTIVITIES

1. Profit before tax 9,367,141,056,385 7,613,368,860,918 8,010,256,856,719 6,929,668,017,079 4,978,991,895,071

2. Adjustments for:

Depreciation and amortisation 1,097,075,552,739 1,032,730,002,039 786,432,923,150 535,451,905,298 414,590,126,008

Allowances and provisions 9,746,294,608 3,786,590,677 33,285,887,136 -75,028,609,419 46,246,669,182

Unrealised foreign exchange (gains)/losses 3,971,846,156 -8,404,807,167 13,064,625,014 23,750,178,315 7,605,774,684

Losses on disposals of tangible fixed assets and construction in progress 12,204,756,318 12,301,757,361 10,670,289,649 20,674,462,045 22,448,930,471

Dividends and interest income -558,439,019,495 -498,729,023,388 -417,488,105,102 -362,908,428,453 -492,526,979,114

Losses from other investing activities 18,035,628,088 18,361,924,596 -34,454,114,103 12,177,054,066 9,240,144,764

Share of profit in associates and jointly controlled entities -12,898,974,260 -59,887,377,298 104,027,048 0 0

Interest expense 31,277,451,964 39,581,737,758 28,652,766,013 3,114,837,973 13,933,130,085

3. Operating profit before changes in working capital 9,968,114,592,503 8,153,109,665,496 8,401,872,389,511 7,086,899,416,904 5,000,529,691,151

Change in receivables 165,561,724,757 -130,429,515,728 -38,409,421,579 -177,763,748,924 -1,105,678,269,247

Change in inventories -498,539,245,611 -545,317,603,122 258,940,210,677 -273,491,911,774 -1,021,809,144,291

Change in payables and other liabilities 484,339,606,582 -40,780,546,630 -272,224,654,212 268,727,745,184 703,897,108,817

Change in prepayments -35,873,901,754 5,506,120,979 -27,641,597,327 -18,320,018,252 -28,541,385,553

Change in trading securities 124,141,507,400 0 0 0 0

10,207,744,283,877 7,442,088,120,995 8,322,536,927,070 6,886,051,483,138 3,548,398,000,877

Interest paid -27,330,327,473 -34,741,971,887 -104,027,048 -3,114,837,973 -14,785,659,974

Income tax paid -1,805,610,651,275 -1,521,907,400,545 -1,399,982,286,806 -1,073,341,754,164 -793,480,641,563

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Other receipts from operating activities 0 46,119,165,658 20,984,913,520 3,704,175,480 1,255,501,334

Other payments for operating activities -715,652,197,441 -603,234,373,651 -691,692,163,285 -518,731,228,162 -330,218,588,434

Net cash flows from operating activities 7,659,151,107,688 5,328,323,540,570 6,251,743,363,451 5,294,567,838,319 2,411,168,612,240

II. CASH FLOWS FROM INVESTING ACTIVITIES

1. Payments for additions to fixed assets -1,067,841,221,053 -858,946,281,717 -1,491,459,216,581 -3,133,999,297,771 -1,767,206,055,153

2. Collections on disposals of fixed assets 44,000,581,044 53,894,284,254 20,991,389,628 16,830,384,644 47,134,169,534

3. Increase in time deposits -1,309,442,450,000 -3,349,601,000,000 -623,100,000,000 -2,536,900,000,000 1,170,408,000,000

4. Payments for purchases of debt instruments of other entities -190,000,000,000 -300,915,667,523 -33,713,307,770 0 0

5. Loans granted to a third party 0 0 0 -30,000,000,000 0

6. Proceeds from sales of debt instruments of other entities 155,767,663 5,296,101,394 4,531,896,380 70,114,387,315 1,161,512,182

7. Collection of loans granted to associates 1,821,603,322 0 30,000,000,000 18,000,000,000 -18,000,000,000

8. Payments for investments in other entities -80,161,500,899 -2,759,659,696 -33,713,307,770 0 0

9. Proceeds from matured bonds 0 0 350,000,000,000 250,000,000,000 100,000,000,000

10. Collections on investment in other entities 13,902,241,885 19,748,461,471 4,927,205,437 0 0

11. Receipts of interest and dividends 460,883,543,055 560,479,407,828 307,719,066,699 372,293,347,387 472,509,194,809

12. Increase in cash from a subsidiary 0 86,867,562 -159,686,267,298 0 0

Net cash flows from investing activities -2,126,681,434,983 -3,872,717,486,427 -1,589,789,233,505 -4,973,661,178,425 6,006,821,372

III. CASH FLOWS FROM FINANCING ACTIVITIES

1. Proceeds from capital contribution by minority interest 107,476,398,854 70,421,503,931 0 0 1,454,528,400,000

2. Payments for shares repurchases 0 -319,602,000 -525,442,959 -1,982,321,000 -1,852,743,000

3. Proceeds from short-term and long-term borrowings 3,973,222,371,269 1,490,974,827,513 0 0 624,835,000,000

4. Payments to settle loan principals -3,782,739,882,737 -233,883,299,908 0 0 -1,209,835,000,000

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5. Payments of dividends -6,002,261,574,354 -4,000,514,074,130 -3,167,235,049,800 -2,222,994,056,000 -741,428,260,000

Net cash flows from financing activities -5,704,302,686,968 -2,673,320,644,594 -3,167,760,492,759 -2,224,976,377,000 126,247,397,000

Net cash flows during the year -171,833,014,263 -1,217,714,590,451 1,494,193,637,187 -1,904,069,717,106 2,543,422,830,612

Cash and cash equivalents at the beginning of the period 1,527,875,428,216 2,745,645,325,950 12,521,260,804.00 3,156,515,396,990 613,472,368,080

Effect of exchange rate fluctuations on cash and cash equivalents -2,278,224,319 -186,238,711 -668,472,041 -325,519,080 -379,801,702

Currency translation differences 4,918,411,050 130,931,428 0 0 0

Cash and cash equivalents at the end of the year 1,358,682,600,684 1,527,875,428,216 2,745,645,325,950 1,252,120,160,804 3,156,515,396,990

 
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III. RATIOS ANALYSIS

v Summary of the ratios table

VINAMILK
RATIOS 2015 2014 2013 2012 2011
Trailing EPS VNĐ 7,297 6,874 8,411 10,471 11,518
Book value per share (BVPS) VNĐ 17,435 19,678 21,051 27,881 22,447
P/E Times 17.5 13.9 16.1 8.4 7.5
P/B Times 7.3 4.9 6.4 3.2 3.9
Gross profit margin % 40.6 35.2 36.1 34.2 30.5
Net profit margin % 19.4 17.4 21.1 21.9 19.5
ROE % 38.3 32.6 39.6 41.6 41.3
ROA % 29.2 25.0 30.7 33.0 32.0
Short-term ratio Times 2.8 2.9 2.6 2.7 3.2
Liabilities to assets % 0.24 0.23 0.23 0.21 0.20
Debt to equity % 0.03 0.03 0.02 0.00 0.01

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v Liquidity Ratio
Liquidity reflects the ability of Vinamilk to meet its short-term obligations using assets that are most readily converted into cash.
Assets that may be converted into cash in a short period of time are referred to as liquid assets; they are listed in financial statements as
current assets. Current assets are often referred to as working capital because these assets represent the resources needed for the day-to-
day operations of the company's long-term, capital investments. Current assets are used to satisfy short-term obligations, or current
liabilities

Liquidity ratios provide a measure of the company’s ability to generate cash to meet its immediate needs.

1. The current ratio is the ratio of current assets to current liabilities and it indicates the company's ability to satisfy its current
liabilities with its current assets 

Current ratio = Current assets/ Current liabilities

2. The quick ratio is the ratio of quick assets (generally current assets less inventory) to current liabilities; Indicates the
company's ability to satisfy current liabilities with its most liquid assets 

Quick ratio = (Current assets – Inventory) - Current liabilities

VINAMILK NUTIFOOD
Liquidity Analysis Ratios 2015 2014 2013 2012 2011 2014 2013
CURRENT RATIO Times 2.8 2.8 2.6 2.7 3.2 1.2 1.0
QUICK RATIO Times 2.2 2.2 2.0 1.8 2.1 0.7 0.7

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Vinamilk's  Liquidity  RaQos  

In 2011 the current ratio peaked at 3.2 times as the current liabilities
3.5   3.2   while the quick ratio only had 2.1 times as the current liabilities. Both
the current ratio and the quick ratio significantly decreased in 2012.
3   2.7   2.8   2.8  
2.6   The current ratio fell by 0.5 times from 3.2 to 2.7 times and the quick
2.5   ratio decreased from 2.1 to 1.8 times. In 2013, the current ratio
2.1   2.2   2.2  
2.0   continued to fall by 0.1 times while the quick ratio rose from 1.8 to
2   1.8   2.0 times. There was an increase in both the current ratio and the
quick ratio in 2014. Both of the two ratios grew 0.2 times as the
1.5  
current liabilities. The two ratios in 2015 are exactly the same as the
1   two ratios in 2014.

0.5  
It can be seen that the solvency of the Vinamilk always guaranteed at
around level of 2.8, and this is better than Nutifood (only at 1.2).
0   Thus, this created crucial advantage in raising capital for business
2011   2012   2013   2014   2015   activities as well as increased credibility for suppliers of the company.

CURRENT  RATIO   QUICK  RATIO  

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v Activity Ratio
Activity ratios measure company sales per another asset account—the most common asset accounts used are accounts receivable,
inventory, and total assets. Activity ratios measure the efficiency of the company in using its resources. Since most companies invest
heavily in accounts receivable or inventory, these accounts are used in the denominator of the most popular activity ratios.

VINAMILK NUTIFOOD
Profitability Analysis Ratios 2015 2014 2013 2012 2011 2014 2013
Return on Assets (ROA) % 29% 25% 31% 33% 32% 16% 5%
Return on Equity (ROE) % 38% 33% 40% 42% 41% 74% 66%
Gross profit margin % 41% 35% 36% 34% 30% 42% 50%
Net profit margin % 19% 17% 21% 22% 20% 7% 4%
Earnings Per Share (EPS) VNĐ 7,297 6,874 8,411 10,471 11,518 25,712 7,179

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3.5   3.2   16   14.7  

2.8   2.8   14   13.1   12.7  
3   2.7   12.4  
2.6   12  
12  
2.5  
10  
2  
1.6   8   6.6  
1.5   1.5   1.5   6.4  
1.4   5.9  
1.5   6   5.3   5.2  

1   4  

2  
0.5  
0  
0   2011   2012   2013   2014   2015  
2011   2012   2013   2014   2015  
INVENTORY  TURNOVER  
Assets  Turnover  RaQo  
ACCOUNTS  RECEIVABLE  TURNOVER  
Working  Capital  RaQo  

Vinamilk's Profit from operation remained arround 35%. In 2005, sales increased by 6% up to 41%. Moreover, they well managed the
inputs expenses (raw materials, inventories, administration, interest,...) that all make the return on assets and return on equity are high
at arround 29% and 38% respectively. This helps Vinamilk enforce the consumer trust on their product and also their maket leading
position in the domestic nuition market.

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v Profitability Ratio
Profitability ratios measure the company’s ability to generate earnings relative to sales, assets and equity. These ratios assess the ability
of the company to generate earnings, profits and cash flows relative to some metrics, often the amount of money invested. They
highlight how effectively the profitability of the company is being managed.

VINAMILK NUTIFOOD
Profitability Analysis Ratios 2015 2014 2013 2012 2011 2014 2013
Return on Assets (ROA) % 29% 25% 31% 33% 32% 16% 5%
Return on Equity (ROE) % 38% 33% 40% 42% 41% 74% 66%
Gross profit margin % 41% 35% 36% 34% 30% 42% 50%
Net profit margin % 19% 17% 21% 22% 20% 7% 4%
Earnings Per Share (EPS) VNĐ 7,297 6,874 8,411 10,471 11,518 25,712 7,179

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45%   41%   42%   35%   45%  

40%   41%  
38%  
40%   40%  
30%   36%  
33%   34%   35%  
35%   35%  
25%   30%  
30%   30%  
25%   20%  
25%   22%  
33%   20%   21%  
20%   32%   31%   19%  
29%   15%   20%   17%  
15%   25%  
10%   15%  
10%  
5%   10%  
5%  
5%  
0%   0%  
2011   2012   2013   2014   2015   0%  
Return  on  Assets  (ROA)   2011   2012   2013   2014   2015  

Return  on  Equity  (ROE)   Gross  profit  margin   Net  profit  margin  
                                                         

Profit from operating activities always stands at level of over 35% of Vinamilk. In 2015, the turnover reached 41% (increased by 6%)
compared to the previous year, and along with good control of costs (the cost of inputs in the production and management costs,
interest expenses,...) contributed to keep ROE increased in a very high level of 38% - 40%. This shows Vinamilk's strong position in
the domestic milk market and in consumer trust.

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v Capital Market Analysis Ratio
VINAMILK NUTIFOOD
Capital Market Analysis Ratios 2015 2014 2013 2012 2011 2014 2013
Price Earnings P/E Ratio Times 17.5 13.9 16.1 8.4 7.5 3.9 9.8
Price to Book Ratio P/B Times 7.3 4.9 6.4 3.2 3.9 1.7 6.5
Trailing EPS VNĐ 7,297 6,874 8,411 10,471 11,518 25,712 7,179

Vinamilk's  Capital  Market  RaQos  

20   14,000  
17.5  
18   11,518   16.1   12,000  
16   10,471  
13.9  
14   10,000  
8,411   The ratio of P / E of the company at the end of 2015 reached 17.5
12   7,297   and the company's EPS in 2015 was 7,297 VND. Besides, the
6,874   8,000  
10   8.4   ratios of P / E and P / B of Vinamilk is currently at very high
7.5   7.3   6,000  
8   6.4   levels. The reasons for this are that investors are expecting
4.9   potential growth of the company in the future with impressive
6   3.9   4,000  
3.2   profitability and investment projects are implemented.
4  
2,000  
2  
0   0  
2011   2012   2013   2014   2015  

Trailing  EPS   Price  Earnings  P/E  RaQo  

Price  to  Book  RaQo  P/B  

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v Capital Structure Analysis Ratio

VINAMILK NUTIFOOD
Capital Structure Analysis Ratios 2015 2014 2013 2012 2011 2014 2013
Liabilities to assets % 0.24 0.23 0.23 0.21 0.20 0.66 0.93
Liabilities to equity % 0.03 0.03 0.02 0.00 0.10 0.10 0.04

Vinamilk's  Capital  Structure  RaQos  

Liabilities to equity ratio is a half as the ratio of liabilities to assets in
0.30  
2011. The ratio of liabilities to assets is 20% while the liabilities to
equity ratio is just 10%. In 2012, there was a sudden decline in the ratio
0.25  
of liabilities to equity from 10% to 0%. At the same time, the liabilities
to assets ratio slightly increased by 1%. However, the liabilities to equity
0.20  
ratio slowly went up to 2% while the liabilities to assets ratio continued
to rise about 2%. The ratio of liabilites to assets remained steady at 23%
0.15  
in 2014 while the liabilites to equity ratio continued to grow from 2% to
3%. In 2015, the liabilities to assets ratio peaked at 24% while the
0.10  
liabilities to equity ratio remained at 3%.

0.05   Vinamilk's Liabilities to Assets ratio fluctuated at from 20% to 24%, the
debt ratios over the years tend to stabilize at the level of below 30%.
0.00  
This shows that the company operated by the conservative strategy and
2011   2012   2013   2014   2015  
limited the financial risks, thus, the debt ratios is relatively slow.
Consequently, the bank’s loan for Vinamilk is very safety.
LiabiliQes  to  assets   LiabiliQes  to  equity  

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IV. SUMMARY
In the financial analysis above, we can see that the financial health of Vinamilk keeps a stable situation over the previous 5 years. From
the creditor point of view, it is remarkable to point that Vinamilk's liquidity fluctuated in safety range between 2.2 and 2.8 and both the
two liquidity ratios at a high level are more than 1. This showed a good sight for creditors that they can be assured of solvency,
repayment and interest payments of Vinamilk.

On the other hand, from the investor standpoint, it can be clearly seen that the indicators of profitability (ROA 30% and ROE 38.8%)
of the company are always high while the P/B ratio (the average of 5.14 times) and the P/E ratio (the average of 12.68 times) is fairly
slow. In addition, the structure of assets and capital has high sustainability. This also the key point for choosing investment of investors
who can invest long term or short term investment. This showed that both two types of investment that are good for investing
Vinamilk.

The following table will illustrate this:

• Vinamilk's liquidity fluctuated in safety range between 2.2 and 2.8

Creditor or bank • Both 2 Liquidity ratios at a high level are more than 1

à The creditors can be assured of solvency, repayment and interest payments of the company

• The indicators of profitability (ROA 30% and ROE 38.8%) of the company are always high

• While the P/B ratio (the average of 5.14 times) and the P/E ratio (the average of 12.68
times) is fairly slow
Investors
• The structure of assets and capital has high sustainability.

à Investors can invest long term or short term investment that are good

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V. APPENDIX

STATEMENT OF CHANGES IN COMPREHENSIVE INCOME (PROFITS AND LOSSES)

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STATEMENT OF CHANGES IN FINANCIAL POSITION

ASSET= LIABILITIES + EQUITY

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VI. REFERENCE

• http://vietnamembassy-usa.org/vi/node/678

• http://www.kantarworldpanel.com/global/News/Unilever-and-Vinamilk- top-brands-in-Vietnam

• http://www.amchamvietnam.com/1010/vietnam-dairy-products-joint- stock-co-vinamilk-to-issue-new-shares/

• http://asia.nikkei.com/Business/AC/Vinamilk-revenue-up-14-in-2015- on-strong-overseas-business

• https://www.vinamilk.com.vn/static/uploads/bc_thuong_nien/1412564299-

c48e4d8fcfae78aa5c64b53c71a60b1197e34f65e52269b47dc7801b30f006d4.pdf

• http://www.vnbusinessreg.com/dairies-battle-vietnam-market-share/

• https://brokingrfs.cimb.com/YJ9li1blJIghoVzeCWUTaWtLH4AMD7T3ACeyk0crz1LWgsazf

jXtVwA08xOduBvd7z476lvpIT01.pdf

• http://www.thitruongotc.com.vn/giao-dich-co-phieu- 12912/NUTIFOOD.htm

• http://finance.vietstock.vn/VNM/financials.htm

• http://m.nhipcaudautu.vn/doanh-nghiep/phan-tich/nganh-sua-thoi-tpp-lieu-doanh-nghiep-noi-co-du-luc-3297445/

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