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VIETNAM BEVERAGE INDUSTRY REPORT 2017

1

Content

Executive summary 3

1 Business environment 6

1.1 Macroeconomic context 6

1.2 Legal barriers 13

1.3 Free trade agreements 18

2 Industry overview 24

2.1 Global market 24

2.1.1. Beer 25

2.1.2. Wine 36

2.1.3 Soft Drink 45

2.2 Local market 48

2.2.1. Beer 51

2.2.2. Wine 61

2.2.3 Soft Drink 75

2.3 Risk 90

3.2.1 4.1 SWOT analysis 91

2.3.2. Competitiveness analysis 92

2.3.3. Business risk 95

2.4 Planning and development 99

2.5 Prospect and prediction 101

2.5.1. 2.1 Motivational factors 102

2.5.2 Prediction 104

3 Enterprise analysis 112

3.1 Profitability 114

3.2 Operating capability 118

3.3 Financial strength 121

3.4 Return on investment 124

4 Appendix 126

2

Executive summary

3

Vietnam beverage industry came into being

years ago but just blossomed for the past

decade.

The local industry is capable of meeting

domestic consumption needs, with less

imports and more exports.

As of soft drinks, the industry has expanded on a

large scale and rapid growth given adequate

domestic supply.

The global beverage market has so far been on a

positive trend but with lots of unexplored

potentials.

2017 witnessed a sharp downturn in the industry

compared to the last year due to production

setbacks.

Executive summary

4

The wine market is on a small scale with falling

production.

There exists a few large-scale and strong -

branded enterprises in the industry such as

Sabeco, Habeco and Tan Hiep that are capable

of competing with FDI enterprises.

The industry has low debt rate, high liquidity

and high asset performance.

As estimated, the beer, wine and soft drink

segment will revenue 180 billion, 33 billion and

120 billion respectively by 2018.

Abbreviation

5

MOF Ministry of Finance

CAGR Compounded Annual Growth Rate

FI Foreign Investment

EVFTA EU-Vietnam Bilateral Trade Agreement

FAO Food and Agriculture Organization of the United Nations

FDI Foreign Direct Investment

FTA Free Trade Agreements

VA Value Added

IWSR International Wine & Spirit Research

MFN Most Favoured Nation

OIV International Organisation of Vine and Wine

GDVC General Department of Vietnam Customs

GSO General Statistics Office of Vietnam

SC Special Consumption

TPP Trans-Pacific Agreement TPP

UNFPA United Nations Population Fund

UNWTO World Tourism Organization

USDA U.S. Department of Agriculture

VAT Value Added Tax

VBA Association Beer - Alcohol - Beverage Vietnam

VIRAC VIRAC Joint Stock Company

WTO World Trade Organization

Content

1 Business environment

1.1 Macroeconomic context

1.2 Legal barriers

1.3 Free trade agreements

6

7

Source: VIRAC, GSO

1. Business environment


Source: VIRAC, GSO

Monthly CPI fluctuations, 2014-2017

GDP growth, 2011 - 2017

8

Source: VIRAC, GSO

Source: VIRAC, GSO



CPI by item group, 2017

• The beverage and tobacco industry are among segments having

positive CPI growth in 2017.

• Vietnamese consumer confidence index fell by 1 point percent to 116

points in the third quarter of the year 2017.

Vietnam’s Consumer Confidence Index, Q1/2014 - Q1/2017



9

Source: Synthesized by VIRAC, BCG

• In 2017, the USD/VND exchange rate fluctuated around 22.400.

• 2017’s FDI rose sharply to 35.88 billion dollars, up 47.05% compared to

the same period in 2016.

Thousand

VND

VND/USD exchange rate, 2013-2017 Source: VIRAC, PVN

FDI capital, 2015-2017Billion

USD



10

Source: VIRAC, GDVC

Beverage industry’s shares in GDP, the period 2010-2015

Source: VIRAC, GSO

Billion USD

Commodity import – export, 2006 - 2017

Billion USDThe total im-export value reached 425.12 billion, up 21% corresponding

to 73.74 billion compared to 2016.



11

Beverage consumption is one of the important driving

factors behind consumer goods.

The young population creates a potential market for the

beverage industry.

Source: VIRAC, GSO

Million

people

Total population and working - age population structure, 2010-2017

Beverage and tobacco sectors’ CPI compared to the previous month

T4/2016-2017

Source: VIRAC, GSO



12

Source: VIRAC, Economist Intelligence Unit

Total disposable income, 2010-2020fThe increasing disposable income has stimulated expenditures on beverage

stuff.

Source: VIRAC, GSO

Billion USD

Vietnam’s retail sales 2011-2017

Content

I Business environment


1.2 Legal barriers


13

14


1.2. Legal framework

Legal framework’s impact on the industry

For state agencies

For businesses in the industry

Beverage export output 2010-2015

Source: VIRAC, GSO

15



Thousand tons

Beer manufacturing enterprises 2010-2016 Profit margin before tax, 2010-2016 Beverage manufacturing growth 2011-2017

Source: VIRAC, GSOSource: VIRAC, GSOSource: VIRAC, GSO

Unit: %

16



17



Circulars and decrees of the special consumption tax on alcoholic beverages

SCT on alcoholic beverages are subject to the incremental roadmap as indicated

in Law No. 70/QH13/2014 and will increase gradually to 65% in 3 years’ time,

starting from January 1st, 2016.Commodity Date

Tax rate

(%)

SCT roadmap applicable to liquor and beer since 2016

Source: Synthesized by VIRAC

18



New regulations on liquor imports.

Content

1 Business environment


1.2 Legal barriers


19

• Tariffs:

3.1 WTO — Vietnam joined as the 150th member on November 7th, 2006

• Distribution markets:

• Investment environment:

WTO’s impact on Vietnam’s beverage industry:

Item

Most

Favoured

Nation(%)

Commitments with WTO

Tariff before

membership (%)

Final tariff

(%)

Implementa

tion span

Source: VIRAC, WTO

20



• Tariffs:

3.2 EU-Vietnam Bilateral Trade Agreement (EVFTA) was signed on December 2nd, 2015 in Brussels, Belgium.

Entry commitments:Product Commitment

Source: European Commission - Vietnam’s Ministry of

Industry and Trade

21



• Investment

EVFTA’s impact on Vietnam’s beverage industry:

3.3 CPTPP - Comprehensive Partnership and Transition Partnership Agreement

Commitments

• Tariff (commercial goods):

• Other commitments

22



CPTPP’s impact on Vietnam’s beverage industry:

No. Item Tax - cutting

roadmap

1

2

3

4

5

Vietnam's commitments with CPTPP on import tariffs:

Source: VIRAC, Ministry of Finance

22



3.4 Other trade agreements:

FTA’s impact on Vietnam’s beverage industry:

24



Content

2. Industry overview

2.1 Global market

2.2 Local market

2.3 Risk

2.4 Planning and development

2.5 Prospect and prediction

25


2.1 Global market – 2.1.1. Beer

2.1.1 Beer

Input material: Malt, Hops

Regarding malt

26

The UK’s barley price developments 1/2012-2017

Source: VIRAC, Indexmundi

Unit: GBP/tonne

Global barley production and consumption, 10/11-17/18e

Million

tons

Source: VIRAC, USDA



27

Market shares of 5 largest barley producers 2017/2018e

Source: VIRAC, USDA

Barley consumption for malt processing, 10/11-16/17

Million tons

Source: VIRAC, International Grains Council



28

The UK’s malt price movements, 7/7/2011-2015

Source: VIRAC, Bloomberg

Unit: GBP/tonne

Malt export production in the world and Europe, 2010-

2015

Million tons

Million tons

There is a worldwide decline in malt exports, except for the European region, which

is forecast to be on the upward trend given favorable weather conditions in some

countries in the region: The UK and Spain.

Source: VIRAC, Euromalt, United Nations Trade Statistics

Malt production situations in the world and Europe, 2010-2014



Regarding hops

29

Global hops farming and production 2008-2017e

Source: VIRAC, E-Malt.com, the International Hop Growers ' Convention,

Washington’s hops price movements 1982-2016

Source: VIRAC, U.S.D. A National Agricultural Statistics Service

$/lb (lb = pound = 0.45 kg)

Hops production has remained stable but prices hiked up in the period of 2005-2016. Market shares of 5 largest Hops producers 2017

Source: VIRAC, E-Malt.com, the International Hop Growers ' Convention,



30


Million

tons

Million

USD

Hops export situation, 2011-2016

Market shares of 5 world's largest Hops exporters 2016



Global beer supply and demand

Global production is of large scale with two major hubs, including Asia and Europe. Irregularities due to prolonged droughts blew a huge hit to malt

production — the main input material. Against this setback, the industry still met the world’s consumption needs.

Global beer consumption and production 2010-2017eBeer output and growth rate of 7 regions 2017e


31

Billion liter


32

Top 10 countries having the highest beer im-export value 2016 Countries with highest beer im-export growth rates 2010-2015

Source: VIRAC, worldsrichestcountries.comSource: VIRAC, Euromalt, United Nations Trade Statistics



Global beer output and exports, 2010-2016

Million

tons

Billion

USD

The beer market has distinctly divided into two groups: Multinational companies with capital, branding and distribution channel advantages and

indigenous manufacturers with a depth understanding of the local demand.

33

Production market shares of 5 world’s leading enterprises, 2016

Source: VIRAC, VBA

Consumption market shares of 5 world’s leading enterprises,

2016

Source: VIRAC, VBA



34

RankLogo Brand Entity Nation

Brand value (million USD) Brand ranking

2017 2016 2017 2016 2017 2016

Source: brandirectory.com

10 highest-value beer brands, 2016-2017

1. Bud Light



35

2. Budweiser

3. Heineken

4. Brahma

5. Skol

6. Asahi



36

7. Corona Extra

8. Guinness

9. Cyrillic

10. Miller Lite



Wine

37


2.1 Global market – 2.1.2. Wine

Top five European countries with the largest wine vineyard area

Source: VIRAC, THE OIV

Top five non- European countries with the largest wine vineyard area


Wine-producing vineyard area, 2005-2016


38



Unit: million Output

Source: VIRAC, THE

OIV

Grape production in General, 2010-2016eMillion

tons


Total vine production by country in 2016

39



Wine production presents lots of discernable fluctuations while the

demand for consumption remained relatively stable during 2005-

2016.

Top five largest wine producers in the world, 2014-2016


Global wine production and consumption, 2005-2016e100 million

litres

Market shares of five largest wine producers, 2016-2016



40



Nation2015 (billion

liters)

2016 (billion

liters)

Changes during

2016/15

Top 5 largest wine consumers in the world, 2015-2016



Top 5 largest wine consumers in the world, 2016

Wine exports tend to climb up in value and output with major importers within the EU.

41



Source: VIRAC OIV, GTA


Nation

Wine export output,

2012-2016

(billion liters)

Export value

(billion EUR)

2015 2016 2015 2016

Wine export value and output 2000-2016e Largest wine exporters

42



Largest wine importers

Nation

Import output, 2012-

2016

(billion liters)

Import value

(billion EUR)

2015 2016 2015 2016

Source: VIRAC OIV, GTA

43



44



The consumption demand for malt wine is on the rise alongside a slight increase in export values.

Largest malt wine importers 2016

Source: VIRAC, UN COMTRADE statistics

Malt wine consumption 2009-2016

Billion USD

45



RankChan

geType of wine

Total

point

Total brand

point

Brand

quantity of

top 10

Most prevalent liquor types in the world 2016

Source: VIRAC, drinkspowerbrands.com

Rank Type of wineTotal brand

pointChange

World-class alcohol brands 2016


46



Rank Change Type of wine Total point ChangeTotal brand

pointChange

Brand quantity

of top 10Change

World’s largest wine traders and producers 2015


Rank Change Type of wine Total point ChangeTotal brand

pointChange

Brand quantity

of top 10Change

-

World - famous wine exporters 2015


The soft drink market has still maintained an intense growth of more than 8 percent

with a CARG of 3.08% in the period of 2009-2015.

47


2.1 Global market – 2.1.3. Soft Drink

Soft dink sales, 2010-2015

Source: VIRAC, VBA, Datamonitor

Unit: billion

Soft drink value and output 2010-2016

Thousand

tons

Million

USD

Source: VIRAC, Euromonitor

Fizzy drinks are still the most preferred but the demand for

consumption is shifting to bottled water and fruit juice.

48



Sales of soft drink lines 2015

Source: VIRAC, VBA

RankLogo Brand Entity

Brand value (million USD)Change

Brand

ranking2016 2017 2016 2017

10 highest-value soft drink brands, 2016-2017

Source: brandfinance

49



Coca-Cola and Pepsico has taken the lead in the industry, contributing 8 out of 10 largest - value brands. Coca-Cola is dubbed as the most expensive

global brand, reaching 31.89 billion, up 6% compared to 2016.

Fizzy soft drink supplemental and sports drink Fruit juice Bottled water

Source: VIRAC, Bloomberg Intelligent, VBA

Content


2.1 Global market

2.2 Local market

2.3 Risk



50

The drinks industry has a large scale and high growth potential. Production is gradually meeting the demand, with increasing exports and falling

imports.

51


2.2 Local market

Local soft drink im-export import, 2010-2016e

Thousand

tons

Source: VIRAC, UN COMTRADE

statistics

Local soft drink production and consumption, 2010-2017

Billion

liter

Source: VIRAC, GDVC

Billion

VND

Segment structure and shifting during 2010-2017 recorded no significant change. Beer and soft drinks were still dominant while the wine segment only

made up the small share.

52


2.2 Local market

Production structure by segment 2010-2017

Source: VIRAC, GDVC


The beer value chain

Agriculture Malt

Brewing

Agency Consumer

Packaging

53


2.2 Local market – 2.2.1. Beer

2.2.1. Beer

Vietnam’s major malt export areas, 2016e

Malt and hops import 2010-2016


The beer industry depend its input material on imports, mainly for malt.

Source: VIRAC, Euromalt, United Nations Trade

Statistics

54



Input material

Thousand kg

Malt import situations, 2010-2016


Million

tons

Europe

55



Vietnam’s hops supply structure 2016


Statistics

Thousand kg


Statistics

Hops import to Vietnam, 2010-2016e

56



Production-consumption

The domestic beer industry is in surplus due to production beyond

consumption demand. However, there is much space for growth, particularly

the high-end beer segment.

Local beer production and consumption, 2010 – 2017

Source: VIRAC, GSO

Billion

liter

Thousand

billion VND

Beer consumption structure,

2017

Source: VIRAC, GSO

57



Inventories

Million USD

Beer inventories, 2011-2017

Source: VIRAC, GSO

Beer inventory structure, 2011-2017

Source: VIRAC, GSO

The beer market has a discernable concentration with more than 90% of the value belong to such giant corporations as: Sabeco, Habeco, Heineken,

Carlsberg, Tiger.

58



Internal competition

Domestic consumption market shares, 2016

Source: VIRAC Source: VIRAC

Top 10 Vietnam’s beer brands, 2016

59



Other beer labels

Masan Brewery

Sapporo

AB InBev

60



61



Vietnamese beer is gradually penetrating the world market, with increasing

exports and falling imports, which contributes to boosting the production.

Source: VIRAC, GDVC

Largest beer suppliers for Vietnam 2017e

Thousand

tons

Million

USD


Beer import – export, 2010 –2017

Beer consumption market largest Vietnam

2017e

Source: VIRAC, GDVC

62



63



Payment methods of beer export enterprises 2017

Beer export delivery conditions 2017

Source: VIRAC, GDVC

Purchasing method:

64



10 Vietnam’s biggest beer exporters 2017e 10 Vietnam’s biggest beer importers 2017e

Source: VIRAC, GDVC

Main Vietnam beer import partners, 2017e Main beer export partners to Vietnam, 2017e

Source: VIRAC, GDVCSource: VIRAC, GDVC

Source: VIRAC, GDVC

65



Distribution system

Beer consumption by distribution channels, 2011-2016


End-user beer price structure


Agriculture Vine

FermentationPressing, filtering

and smoothingPackagingWine brewing

Squeezed grape

juiceMixing

Consumer

Agency


66

The wine value chain

Regarding wine


2.2 Local market – 2.2.2. Wine


Regarding malt wine

AgricultureGrapes, cereals,

sugar cane

Fermentation Distillation PackagingWine brewing Mixing

Consumer

Agency

67



Input material

68



Rice and other cereals

Vine

69



Production-consumption

The wine market is on a small scale with falling consumption.

70



Million

litres

Domestic liquor production and consumption 2010-2017e

Source: VIRAC, GDVC

Consumer trends shifted from ordinary wines to vine and high-end ones. The local vine market has a great potential for growth while the malt wine

segment is gloomy, with a shortage of high-quality products.

71



Billion

VND

Million

litres

Wine inventories, 2010-2017

Source: VIRAC, GSO

Sales of vine and malt wines 2010 - 2017

Source: VIRAC, GSO

72




As of the malt wine segment, Halico occupies the largest consumption share with 2 prevalent brands, including Hanoi Vodka and Hanoi New Rice.

Malt wine consumption of production enterprises, 2016

Source: VIRAC

Malt wine consumption market share, 2016

Source: VIRAC

Avinaa

73



The local vine wine market is distinctly and Thang Long wine contributes a large share to the market. In addition, local enterprises produce only low-

cost wine lines.

Source: VIRAC

Vine wine consumption of production enterprises, 2016 Vine wine consumption market share by output, 2016

Source: VIRAC

Import – export

Domestic wine is exported in small and low-value quantities, while high-end

imports are worth 30 times higher.

74



Million

USD

Thousand

tons

Source: VIRAC, United Nations Trade Statistics, GDVC

Thousand

tons

Million

USD


Vine wine import and export 2010-2017e

Alcohol import and export 2010-2017e

75



Million

USD

Thousand

tons


Major wine suppliers to Vietnam, 2017e


Malt wine import and export 2010-2017e

76



In 2017, wine imports from Laos also rose sharply to due the fact that

glutinous rice wine and white wine with an alcoholic concentration of

under 39% are much favored.

Vietnam’s major wine exports 2017e


77



Asia has maintained a key malt wine supplier and consumer of Vietnam

Vietnam’s larges malt wine suppliers 2017e

Source: VIRAC, GDVC

Vietnam’s larges malt wine consumers 2017e

Source: VIRAC, GDVC

78



Source: VIRAC, GDVC

10 Vietnam’s biggest malt wine importers 20107e 10 Vietnam’s biggest malt wine exporters 20107e

Top 10 Vietnam’s malt wine importers 2017eTop 10 malt wine exporters to Vietnam 2017e

Source: VIRAC, GDVC


79



Source: VIRAC, GDVC

Top 10 Vietnam’s largest malt wine exporting enterprises 2017e Top 10 Vietnam’s largest malt wine importing enterprises 2017e

Top 10 largest malt wine exporters to Vietnam 2017e Top 10 Vietnam’s largest malt wine importers 2017e

Source: VIRAC, GDVC


The soft drink industry


Pure water/mineral water

Mineral water

sourcesFiltration Cooling Bacterial filtration Bottling

AgencyConsumer

Synthesized

by VIRAC

Industrial

water

Soft

drink

LiddingHeat

treatmentBottling Agency

Consume

r

Cooling

CO2

loading

Fizzy soft drink


80


2.2 Local market – 2.2.3. Soft Drink

Fruit juice


Agriculture Fruit

PressingManual

filtrationFruit gel Purifying

Crystal

filtrationProcessing

Agency

Filling

Consumer

.

81



Input material

Sugar

Mineral water

Green tea leaves

82



Fruit

Flavorings

83



84



Production - consumption

The soft drink market runs on a large scale and high growth rate that gradually

meets the local consumption.

85



Domestic soft drink production and consumption

2010-2017e

Billion

liter

Thousand billion

VND

Source: VIRAC, GSO

Soft drink consumption structure (by volume) 2017e

Source: VIRAC, GSO

The soft drink market has a high level of inventories compared to beer and wine, increasing sharply in the period of 2015-2017

86



Inventories

Unit: million liters

2010 2017

Source: VIRAC, GSO

Inventory structure by product lines 2010-2017

Soft drink inventories 2010 – 2017

Source: VIRAC, GSO

The soft drink market has a high concentration level and great growth potentials which are very much attractive to investors. The domestic enterprises

remain weak with inadequate production capacity compared to foreign businesses.

Total soft drink enterprises 2010-2016

Source: VIRAC, TCKT

87




88



Vietnam’s soft drink market shares, 2016

Source: VIRAC

Soft drink line market shares, 2016

Source: VIRAC

89



Exports have exceeded imports but with lower values.

Import – export


Thousand tons Thousand kg

Soft drink export and import, 2010-2017e

Fruit juice exports are potential, bringing about high revenue for the

country due to abundant raw material sources.



90





Fruit juice export and import, 2010-2017e

Soft beverage export and import, 2010-2017e


The Asia is a main fruit juice consumer and supplier Vietnam.

Vietnam’s fruit juice consumer structure 2017e Vietnam’s fruit juice supplier structure 2017e


91



Similar to the fruit juice segment, Vietnam’s soft drink also deals with the Asia as a major im-exporter.

Vietnam’s soft drink consumer structure 2017e Vietnam’s soft drink supplier structure 2017e


92



Source: VIRAC, United Nations Trade Statistics

93



Source: VIRAC, GDVC

10 Vietnam’s biggest soft drink importing enterprises 2017e 10 Vietnam’s biggest soft drink exporting enterprises 2017e

Top largest fresh drink exporters Vietnam 2017e Top Vietnam’s largest fresh drink importers 2017e

Source: VIRAC, GDVC


94



Source: VIRAC, GDVC

10 Vietnam’s biggest fruit juice exporting enterprises 2017e

Top 10 fruit juice exporters to Vietnam 2017e

10 Vietnam’s biggest fruit juice importing enterprises 2017e

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Top 10 fruit juice importers to Vietnam 2017e

Content


2.1 Global market

2.2 Local market

2.3 Risk



95


2.3 Risks - 2.3.1 SWOT analysis

Strength: Weakness:

Opportunities: Challenges:

96

0

1

2

3

4

5

Source: Synthesized by

VIRAC

-1

1

3

5 Customer power


VIRAC

97


2.3 Risks -2.3.2 Competitiveness analysis (5-forces)

Supplier power

0

1

2

3

4

5


VIRAC

0

1

2

3

4

5

Nguồn: VIRAC tổng hợp

Potential competitors

98



Subsitute product risks

0

1

2

3

4

5


VIRAC

012345



VIRAC

99



3.1 Production risks

• Input material risks:

• Food safety risks:

100


2.3 Risks - 2.3.3 Operating risks

• Production policy risks:

• Supply chain risks:

• Consumption policy risks:

101



• Competitiveness risks:

• Consumer taste risks:

102



• Media communication risks:

• M&A risks:

103



Content


2.1 Global market

2.2 Local market

2.3 Risk



104

Target Beer Wine Soft Drink

Product planning:

Region

Production capacity by

region (million litres)

Capital

investment

2011-2015

(billion VND)2015 2025

Production area planning and

capital investment

Source: VIRAC

Source: VIRAC

105



Content


2.1 Global market

2.2 Local market

2.3 Risk



106

Population:

Income:

Lifestyle and consumer habits:

107


2.5 Prospect and prediction -2.5.1 Motivations

FTAs’ positive impacts

Other factors

108


2.5 Prospect and prediction -2.5.1 Motivations

Source: VIRAC, VBA

109


2.5 Prospect and prediction - 2.5.2 Prediction

Sub-sector

Annual forecast (billion VND)Average growth rate (%)

2018f 2019f 2020f

Sub-sectoral consumption price forecast (including both domestic and imported products), 2018-2020

Product development trend

Beer:

No. Entity Project

Total

invest

ment

Impleme

ntation

span

Capacity (

million

tons/year)

Phas

e I

Phase

II

1

2

3

4

5

6

7

Built and inaugurated beer factories, 2015-2019


110



Liquor:

Soft Drink:

111



No. Entity ProjectTotal

investmentImplementation span

Capacity ( million

tons/year)

Phase IPhase

II

Built and inaugurated soft drink plants, 2015-2017


112



Relevant sector development trends

Tourism:

113



114



Retailing sector:

11/1/2011 11/1/2012. 11/1/2014 11/1/2015

100%-FDI enterprises’ market penetration roadmap


115



No. FDI enterprise Total investment Plan/activitty

1

2

3

4


FDI enterprises’ retailing projects and plans have been launched in Vietnam

116



Content

117

3 Enterprise analysis

3.1 Profitability

3.2 Operating capability

3.3 Financial strength

3.4 Return on investment

3. Enterprise analysis

List of major beverage enterprises, 2015

No. FDI enterprise Net revenue (billion)OWNER’S EQUITY

(billion VND)State ownership

Total assets

(billion VND)

1

2

3

4

5

6

7

8

9

10

List of 13 major beverage enterprises 2016


VIRAC

118

Content

119


3.1 Profitability




120


3.1 Profitability

Billion

VND


VIRAC

Rate of turnover, 2015-2016

121


3.1 Profitability

122


3.1 Profitability

Billion

VND

Gross profit and gross profit margin, 2016


VIRAC

Content

123


3.1 Profitability




124



Turnover of receivables 2016

Unit: times



Corporate inventory turnover 2016

125



Asset performance, 2016

Unit: times


Content

126


3.1 Profitability




127



Tan Hiep Phat and Vang Thang Long have debt/equity as well as debt/total assets many times higher than the industry average.

Solvency capacity, 2016


VIRAC

128



Payment capacity, 2016


Content

129


3.1 Profitability



3.4 Gross profit margin 2015

130


3.4 Gross profit margin


ROA and ROE 2015-2016

Content

131

4 Appendix

Financial Statements

BALANCE SHEET

Unit: billion 2016 2015

A. SHORT-TERM ASSETS 12,198.336 10,714.345

I. Cash and cash equivalents 7,935.974 3,444.825

II. Short-term financial investments 942.767 3,174.321

III. Short-term receivables 1,079.602 1,090.133

1. Short-term receivables from customers 621.220 551.218

IV. Inventories 1,922.405 2,126.217

B. LONG-TERM ASSETS 9,811.971 8,478.519

I. Long-term receivables 34.493% 38.348

II. Fixed assets 5,854.864 5,462.593

1. Tangible fixed assets 4,843.868 4,478.036

2. Intangible fixed assets 1,010.996 984.557

TOTAL ASSETS 22,010.308 19,192.865

A. LIABILITIES 9,920.563 6,759.685

I. Short-term liabilities 9,173.056 6,473.888

1. Short-term liabilities and loans 1,051.665 1,042.309

2. Taxes and amounts payable to the state 4,261.381 803.768

II. Long-term liabilities 747.527 285.796

1. Long-term liabilities and loans 610.451 164.412

2. Long-term provisions 0.629 0.568

B. OWNER’S EQUITY 12,089.725 12,433.180

TOTAL LIABILITIES AND OWNER’S EQUITY 22,010.308 19,192.8654

1

REPORT ON BUSINESS RESULTS


Net revenue from sales and services 27,144.301 30,568.677

Costs of goods sold 19,645.986 22,301.142

Gross revenues from sales and services 7,498.315 8,267.535

Financial income 418,647 751.041

Financial cost -121,795 68.664

Interest expenses -76,591 -82,182

Cost of sales 2,682.965 2,781.731

Enterprise administration expenses 1,154.417 781.828

Net profits from operating activities 4,330.037 5,692.001

Total net profit before tax 4,366.070 5,707.398

Current corporate income tax expense -1,069.232 -254.202

Deferred corporate income tax expense 209,702 -798.606

Profit after tax 3,506.540 4,654.589

CASH FLOW STATEMENT


I. Cash flows from operating activities

Fixed assets 635,242 633.843

Unrealized foreign exchange gain/loss 0.384 1,407

Net cash flows from operating activities 2,157.735 826.860

II. Cash flows from investing activities

Other long-term assets -308.673 -280,897

Net cash flows from investing activities 382,658 -1,110.944

III. Cash flows from financial activities

Net cash flows from financial activities -1,359.478 -4,207.056

Effect of exchange rate fluctuations 0 -7,842

Net cash flows during the fiscal year 1,180.916 -4,491.141

4. Appendix

Financial statements- Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco)

CASH FLOW STATEMENT



Fixed assets 214.777

Unrealized foreign exchange gain/loss -0.589

Net cash flows from operating activities -5,246.849


Other long-term assets -347.666

Net cash flows from investing activities -370.274


Net cash flows from financial activities -4,000.000

Effect of exchange rate fluctuations -0.589

Net cash flows during the fiscal year 876.575 -1,023.378

BALANCE SHEET




II. Short-term financial investments 0 0

III. Short-term receivables 125.661 2,122.204

1. Short-term receivables from customers 0.830

IV. Inventories 858.953 730.844


I. Long-term receivables 1,526.500

II. Fixed assets 2,142.223 2,247.736


2. Intangible fixed assets 34.653 19,364

TOTAL ASSETS 10,278.499 14,895.147

A. LIABILITIES 4,398.542 6,337.545


1. Short-term liabilities and loans 0.000 0.000

2. Taxes and amounts payable to the state 1,199.541

II. Long-term liabilities 912.932 851,600


2. Long-term provisions 146.322

B. OWNER’S EQUITY 5,879.957 8,557.602


1






Financial income 143.461 151.207

Financial cost 9,298 2.699

Interest expenses 0

Cost of sales 2,187.740

Enterprise administration expenses 245.259



Current corporate income tax expense 1,368.021 1,871.632

Deferred corporate income tax expense -34,926 37.084

Profit after tax 4,736.003 7,562.645

4. Appendix

Financial statements- Vietnam Brewery Limited Company (VBL)

BALANCE SHEET




II. Short-term financial investments 1,155.823 1,837.891

III. Short-term receivables 461,599 484.805

1. Short-term receivables from customers 250,025 308.146

IV. Inventories 834,636 937.972


I. Long-term receivables 1,783 1.505

II. Fixed assets 4,050.374 3,848.782


2. Intangible fixed assets 49.965 51.310

TOTAL ASSETS 9,925.469 9,780.721

A. LIABILITIES 3,849.214 3,243.020



2. Taxes and amounts payable to the state 1,315.744 506,276

II. Long-term liabilities 950,543 720.328


2. Long-term provisions 0 0

B. OWNER’S EQUITY 6,076.255 6,537.701


1






Financial income 168.784 145,513

Financial cost 82.108 74.578

Interest expenses 78.924 72,905

Cost of sales 1,162.132 1,188.085

Enterprise administration expenses 407,745 508,777



Current corporate income tax expense 269.724 236.883

Deferred corporate income tax expense -8,104 16,226

Profit after tax 945.353 796.697

CASH FLOW STATEMENT



Fixed assets 626.804 492.079

Unrealized foreign exchange gain/loss -0.509 -0.920

Net cash flows from operating activities 1,367.891 295,407


Other long-term assets -299.891 -325.715

Net cash flows from investing activities -874,784 -845,115


Net cash flows from financial activities -514.388 -240.578

Effect of exchange rate fluctuations -0.216 2.260

Net cash flows during the fiscal year -21.281 -790.286

4. Appendix

Financial statements- Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (Habeco)

BALANCE SHEET


A. SHORT-TERM ASSETS 208,882 139,135

I. Cash and cash equivalents 4,075 871


III. Short-term receivables 36,092 24,822

1. Short-term receivables from customers

IV. Inventories 168,047 111,998

B. LONG-TERM ASSETS 168,657 181,784

I. Long-term receivables

II. Fixed assets

1. Tangible fixed assets 148,154 150,885

2. Intangible fixed assets 1,671 1,790

TOTAL ASSETS 377,539 320,919

A. LIABILITIES 163,762 275,021

I. Short-term liabilities 163,762 275,021

1. Short-term liabilities and loans 35,720 30,902

2. Taxes and amounts payable to the state 26.709 53.999

II. Long-term liabilities 0 0

1. Long-term liabilities and loans 0 0


B. OWNER’S EQUITY 157.157 105.753

TOTAL LIABILITIES AND OWNER’S EQUITY 320.920 384,452

1


Unit: million 2015 2016

Net revenue from sales and services 224,445 173,865

Costs of goods sold 225,489 161,717

Gross revenues from sales and services -1,044 12,147

Financial income 83 153

Financial cost 1,671 1,255

Interest expenses 0 0

Cost of sales

Enterprise administration expenses

Net profits from operating activities -14,870 -1,295

Total net profit before tax -20,433 -1,676

Current corporate income tax expense 0 0

Deferred corporate income tax expense 0 0

Profit after tax -20,433 -1,676

CASH FLOW STATEMENT



Fixed assets 0 0

Unrealized foreign exchange gain/loss 0 0

Net cash flows from operating activities -76,129 -42,597


Other long-term assets -49

Net cash flows from investing activities -1,360 -1,733


Net cash flows from financial activities 77,063 47,535

Effect of exchange rate fluctuations 6 0

Net cash flows during the fiscal year -425 3,204

4. Appendix

Financial statements- Aroma Beer-Alcohol-Beverage Joint Stock Corporation (Aroma)

BALANCE SHEET


A. SHORT-TERM ASSETS 89.766 88,090

I. Cash and cash equivalents 5.304 2.064


III. Short-term receivables 34.127 24.245

1. Short-term receivables from customers 26.780 19,709


B. LONG-TERM ASSETS 31,796 43.292

I. Long-term receivables 3.794 0

II. Fixed assets 13.952 17.907

1. Tangible fixed assets 13.952 17,883


TOTAL ASSETS 121.562 131.383

A. LIABILITIES 96,724 91.595


1. Short-term liabilities and loans 60,815 49,076





B. OWNER’S EQUITY 30.463 23.574


1



Net revenue from sales and services 83.385 79,780

Costs of goods sold 66.074 61.664

Gross revenues from sales and services 17,311 18.115



Interest expenses 5.789 6.296

Cost of sales 3.850 3,509

Enterprise administration expenses 4.961 4.823

Net profits from operating activities 2.803 3.789

Total net profit before tax 3,643 3.856

Current corporate income tax expense 0.838 1,155


Profit after tax 2.805 2,700

CASH FLOW STATEMENT



Fixed assets 0 1.746


Net cash flows from operating activities -10.236 8.598


Other long-term assets -5.367 6.029

Net cash flows from investing activities -4.203 -8.705


Net cash flows from financial activities 12.061 -3,133


Net cash flows during the fiscal year -2,378 -3,240

4. Appendix

Financial statements- Thang Long Wine Joint Stock Company

BALANCE SHEET


A. SHORT-TERM ASSETS 189.079 182.729


II. Short-term financial investments 0.000 0.000





I. Long-term receivables 0.167 0181

II. Fixed assets 18.786 40,386

1. Tangible fixed assets 18.547 40.203

2. Intangible fixed assets 0239 0.182

TOTAL ASSETS 213,106 229.960

A. LIABILITIES 56,597 52,429


1. Short-term liabilities and loans 10.971 13,046

2. Taxes and amounts payable to the state 20.743 17,414



2. Long-term provisions 0.000 0.000

B. OWNER’S EQUITY 156.509 177.071

TOTAL LIABILITIES AND OWNER’S EQUITY 213,106 229.960

1



Net revenue from sales and services 420,702 443,075

Costs of goods sold 349,526 396.741

Gross revenues from sales and services 71.176 46.333

Financial income 1.470 0956


Interest expenses 0752 1.232

Cost of sales 20.755 6.149

Enterprise administration expenses 19,072 13.274

Net profits from operating activities 30,541 25.656



Deferred corporate income tax expense -0.086 0


CASH FLOW STATEMENT



Fixed assets 5.588 5.741


Net cash flows from operating activities (21,853) 24.516


Other long-term assets -5,502 -29.657

Net cash flows from investing activities 7.777 -29,300


Net cash flows from financial activities -6,538 1,988

Effect of exchange rate fluctuations 0.029 1

Net cash flows during the fiscal year -20.613 -2,795

4. Appendix

Financial report- Ladofood Company Ltd.

BALANCE SHEET



I. Cash and cash equivalents 10,903 50.609


III. Short-term receivables 1,363.910 1,166.014

1. Short-term receivables from customers 689,253



I. Long-term receivables 0 0

II. Fixed assets 1,702.733 2,376.105

1. Tangible fixed assets 849.568 642,908

2. Intangible fixed assets 853.165 1,733.197

TOTAL ASSETS 3,411.975 4,094.888

A. LIABILITIES 3,132.022 2,795.777


1. Short-term liabilities and loans 2,566.511

2. Taxes and amounts payable to the state 166.672

II. Long-term liabilities 115,157 555.142

1. Long-term liabilities and loans 3,524


B. OWNER’S EQUITY 279.953 1,299.110


1








Interest expenses 179,522 110.047

Cost of sales 689,641

Enterprise administration expenses 221,762

Net profits from operating activities 895,988 667,591

Total net profit before tax 1,073.435 758,866

Current corporate income tax expense 239,492 157.646


Profit after tax 833.943 601,220

CASH FLOW STATEMENT



Fixed assets 0 0


Net cash flows from operating activities 169,201 249.872



Net cash flows from investing activities -126,952 -344.398


Net cash flows from financial activities -237.085 134.231


Net cash flows during the fiscal year -194,836 39.706

4. Appendix

Financial statements- Tan Hiep Phat Beverage Group (THP)

BALANCE SHEET




II. Short-term financial investments 263.106


1. Short-term receivables from customers 15,463







TOTAL ASSETS 3,295.976 3,436.597

A. LIABILITIES

I. Short-term liabilities 455.038 696,362


2. Taxes and amounts payable to the state 7,873

II. Long-term liabilities 290.209 296,502



B. OWNER’S EQUITY 2,550.728 2,443.731


1




Costs of goods sold 1,073.170 793,779

Gross revenues from sales and services 603.107 336.367



Interest expenses 0 0

Cost of sales 207.103 148.164


Net profits from operating activities 396.286 188.206

Total net profit before tax 398.092 189.800

Current corporate income tax expense 31.511 14.995



CASH FLOW STATEMENT



Fixed assets 61.082 40.323

Unrealized foreign exchange gain/loss 0.201 0.022



Other long-term assets -97.192 -338.364

Net cash flows from investing activities -319.153 -300,729


Net cash flows from financial activities -211,274 0



4. Appendix

Financial statements- URC Vietnam Co., Ltd

BALANCE SHEET




II. Short-term financial investments 130,000 105.000







1. Tangible fixed assets 17.269 16.247

2. Intangible fixed assets 21.399 21,586

TOTAL ASSETS 286.081 293,726

A. LIABILITIES 85,460 103.016

I. Short-term liabilities 84.840 3.016

1. Short-term liabilities and loans 0 0

2. Taxes and amounts payable to the state 7,545 1.668




B. OWNER’S EQUITY 200.621 190,710


1



Net revenue from sales and services 354.805 404.769


Gross revenues from sales and services 106,073 114,269

Financial income 12.011 11,841

Financial cost -0.105 -0.366

Interest expenses 0038 -0322

Cost of sales -60.133 -66.922

Enterprise administration expenses -33.537 -34,764

Net profits from operating activities 24.309 24,058

Total net profit before tax 33.031 28.064

Current corporate income tax expense -6.861 -5.845



CASH FLOW STATEMENT



Fixed assets 3,739 2.532

Unrealized foreign exchange gain/loss -0.001 0.002

Net cash flows from operating activities 38.005 -83.971



Net cash flows from investing activities 15.926 51,515


Net cash flows from financial activities -13.559 -12.716

Effect of exchange rate fluctuations 0.001 -0.002

Net cash flows during the fiscal year 8.520 -45,172

4. Appendix

Financial statements- Aroma Beer-Alcohol-Beverage Joint Stock Corporation (Aroma)

BALANCE SHEET






1. Short-term receivables from customers 3,273 8,153



I. Long-term receivables 0.288 0.000


1. Tangible fixed assets 96,828 110.533

2. Intangible fixed assets 39,460 40,828

TOTAL ASSETS 245.348 260,586

A. LIABILITIES 62.772 89.163

I. Short-term liabilities 62.771 89.006

1. Short-term liabilities and loans 13.640 23,600





B. OWNER’S EQUITY 182,451 171,423


1



Net revenue from sales and services 379,240 368.045


Gross revenues from sales and services 113,933 98,537


Financial cost 0564 2.449

Interest expenses 0.390 2.321

Cost of sales 51,853 52.272


Net profits from operating activities 34,487 20,523





CASH FLOW STATEMENT



Fixed assets 15,203 16.412

Unrealized foreign exchange gain/loss 0.077 0.093



Other long-term assets -0130 -2,888

Net cash flows from investing activities 0.513 -1.553


Net cash flows from financial activities -22.817 -68,942

Effect of exchange rate fluctuations 0.003 0.001


4. Appendix

Financial statements- Dona Newtower Natural Drink And Food Joint Stock Company

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