Vinamilk
Vinamilk
Vinamilk
Vinamilk Dairy Company was established in 1976. This is one of the first
companies listed on the Vietnam stock exchange. Vinamilk was voted as one of the 100
strongest brands in Vietnam, holding the leading market share and achieving a growth
rate of 20-25%/year. Vinamilk's product portfolio has key products as liquid milk and
powdered milk; products with added value such as condensed milk, edible yogurt and
drinking yogurt, ice cream and cheese. Vinamilk provides the market with a diverse
portfolio of products to consumers.
The company currently has over 200 dairy products with main product groups
including condensed milk, fresh milk - drinking yogurt, powdered milk - nutritional
powder, frozen product groups, soft drinks... respectively accounting for about 37 - 90%
market share nationwide, depending on each product group. With the orientation of
developing into a food corporation, Vinamilk is expanding its business into other fields
such as coffee (Moment), beer (joint venture with SABMiller). In addition, Vinamilk also
increased its scale through financial investment in a number of companies in the industry.
Vinamilk's highlight is its stable and steady business operations over the past many years.
With the orientation of developing into a food corporation, Vinamilk is expanding its
business into other fields such as coffee (Moment) and beer (a joint venture with
SABMiller). In addition, Vinamilk also increased its scale through financial investments
in a number of companies in the industry. Vinamilk's highlight is its stable and steady
business operations over the past many years.
The company's goal is to maximize shareholder value and pursue a business development
strategy based on the following key factors:
Consolidate, build, and develop a system of extremely strong brands that best meet
the needs and consumer psychology of Vietnamese consumers.
Develop the Vinamilk brand into the most scientifically reputable and trustworthy
nutritional brand for all Vietnamese people through the strategy of applying
scientific research to 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 beverage
products that are good for consumers' health through the key brand VFresh to meet
the trend.
Consumption trends are rapidly increasing for natural beverage products that are
good for human health.
Strengthen the distribution system and quality to gain more market share in
markets where Vinamilk has a low market share, especially in rural areas and
small urban areas;
Exploiting the strength and reputation of the Vinamilk brand as a nutritional
brand with "the most scientific and trustworthy reputation of Vietnamese people"
to dominate at least 35% of the market share of the powdered milk market within
the next 2 years;
Comprehensively develop a portfolio of milk and dairy products to target a large
consumer base and expand into value-added products with high selling prices to
increase the overall profit margins of the entire company;
Continue to improve supply system management capacity;
Continue to expand and develop a proactive, strong, and effective distribution
system.
Develop raw material sources to ensure a stable, high-quality supply of fresh milk
at competitive and reliable prices.
The table indicates that Vinamilk's financial performance in 2023 looks promising
when compared to 2022 in a number of important areas. Year-over-year, net sales
climbed by VND 4,734 billion, or 10% more. This implies that Vinamilk's ability to
generate income has increased. It's possible that Vinamilk has grown into new areas or
taken a bigger share of the Vietnamese dairy market. Sales growth can have been
achieved by successfully introducing new items or expanding into untapped markets. It's
possible that strategic marketing campaigns increased customer demand for Vinamilk's
goods and brand awareness. Additionally, gross profit increased by 10% to VND 661
billion. Vinamilk may be maintaining or even increasing its profit margins based on this
expansion and increased net sales.
EBIT increases gradually between 2022 (17,46%) and 2023 (18%) due to rising
costs and rising market share. Compared to 2022, when interest costs grew by 5%
annually, they have doubled in 2023. In comparison to prior years, EBIT dropped
dramatically due to higher interest expenses. But in 2023, Vinamilk stops managing and
maximizes business management expenses, compared to 2022. The cost of business
management in 2023 has not fallen that much from 2022.
Balance sheet
1.1. Assets
Throughout the years, short-term assets have remained consistent, making up
68%. Short-term investments make up 38% of all short-term assets, the biggest
percentage. Then, representing 12% of total assets, there are receivables. Over time,
inventory has consistently made up 11% of the company's total assets. Over the years,
long-term assets have a tendency to decline, making up over 30% of total assets. Ninety-
five percent of long-term assets are made up of fixed assets, which are primarily from
stores and the headquarters. Fixed assets will hardly change in 2022 and 2023.
III. Conclution