PRINCIPLES OF CORPORATE

FINANCE (FIN 202)

INDIVIDUAL ASSIGNMENT

Teacher: Bùi Lê Minh

Author: Đào Thị Huyền Trang

Table of content
0
 I. Introduction
II. Performance Analyze
1. Collect the financial data
2. Perform Common-size analysis
3. Perform Ratios analysis
4. Dupon
5. The statement of cash flow
III.Conclusion
IV. Referent

I. Introduction
Habeco's predecessor is Hommel Brewery, built by the French in 1890. In early 1957, under the
Government's economic recovery policy, Hommel Brewery was restored and in 2003 Hanoi
Beer-Alcohol-Beverage Corporation was established on the basis of reorganization of Ha Beer
Company. Interior. With modern equipment system, the total capacity of Habeco system has

1
reached over 800 million liters of beer and is always in the top 3 beer production enterprises
with the largest market share in the country. Currently, the Corporation plays the role of a
parent company with 17 subsidiaries and 9 other associated and invested companies, with a
total of more than 5,000 employees in the system.

HABECO took 30th position in the ranking of Top 50 most valuable brands in Việt Nam in 2021.
The company is losing its monopoly position to HAVECO because its market share is mainly in
the north. In addition, there are many foreign beer brands as well as fierce competition from
other domestic beer brands. Habeco decided to change its brand identity to match market
trends. The new brand identity is inspired by the successful guiding star, the logo with golden
Houblon flowers arranged in a star shape is a symbol of the quintessence that HABECO has
diligently researched to produce batches of beer captivate the taste buds of beer connoisseurs.
The main blue color of the logo is the color of Houblon flower buds when fresh, also the color
of nature, freshness and development.
The communication message of the new brand HABECO is "Sức bật Việt Nam" to honor
HABECO's vision, mission and desire to associate the development of the business with the
development of contemporary Hanoi, representing the Vietnam's unceasing efforts to reach
out.
Hanoi beer leads the North, but this region only accounts for 35% of the total consumption
volume of the entire Vietnamese beer industry. Meanwhile, this brand is being forgotten in the
South.
Habeco with products bearing the Hanoi Beer brand is fiercely competitive with Sabeco and
Vietnam Brewery Company Limited (VBL - Heineken Vietnam) - the owner of the Heineken,
Tiger and Larue brands. According to FPTS Securities, Habeco's market share at the end of 2018
was only 18.4%, Heineken Vietnam accounted for 23% and Sabeco owned 40.9%.

2
 The

famous product lines that make up the Habeco brand such

as Hanoi draft beer, Hanoi canned beer, Truc Bach beer,
Hanoi Beer Premium… have received the trust of consumers in both quality and style,
conquering them. beer connoisseurs at home and abroad.

3
 II. Performance Analyze

1. Collect the financial data

The Income Statement of HABECO

4
The Balance Sheet of HABECO
2. Perform Common-size analysis

Common size The Income Statement of HABECO

Looking at the table, we can see that the net revenue has decreased over the years, this is also
the general trend of the beer industry in Vietnam. The financial report of Saigon Beer Alcohol
Beverage Corporation (Sabeco), the largest beer enterprise in Vietnam, shows that revenue and
profit in the first nine months of 2020 decreased sharply compared to the same period in 2019.
From 2018 to 2021, revenue continued to decline. Although the decline is a general trend,
HABECo fell faster partly because of the covid pandemic and partly because there were more
new players competing.

5
Common size of The Balance Sheet of HABECO
In general, despite being affected by the Covid-19 epidemic, the Asset increased quite quickly
(increase 7.27%), the company's inventory decreased rapidly (decrease 12.31%) and the
Account Receivables increased (increase 0.52). This proves that the company is pushing
inventory fast and accepting credit sales.
Liability and equity fluctuated during this period, but generally increased.

3. Perform Ratios analysis

6
Profitability ratio: The indicators are relatively poor when Goss profit is only 15% on average
but also tends to decrease, which clearly shows that the cost of goods increased and accounted
for most of the revenue.
Return on equity is low, and plummeted (decrease 3.4%). Although falling is the market trend
in 2021, the company's index is low with peers such as SABECO 2019 having ROE of 25.2% and
16.0% by 2021.
Liquidity ratio: The ratio is at a reasonable level, the company is able to pay its debts as all
indexes are from 1.5 to 2.5. That means HABECO has 1.5 to 2.5 times more current assets than
liabilities to cover its debts.
Leverage ratio: The company's debt solvency is good and the company has enough financial
basis to pay the debt. Ratio of total debt and debt to equity below 0.5, but if D/E ratio that is
too low may actually be a negative signal, indicating that the firm is not taking advantage of
debt financing to expand and grow.
Efficiency ratio: Inventotory turnover and Account receivale decrease and is not good because
it is at a lower level than its competitor, SABECO. The average inventory turnover of HABECO is
9.5 and SABECO is 12.
Total Asset turnover flactuated, but it tends decrease. This proves that the company is not
using its assets well to make a profit.
In general, only the debt solvency index of the company is good, the rest are not so positive
when it is always not as good as a competitor like SABECO. The company should have a way to
change its operations so that it can change the indicators in a more positive direction.
4. Dupont

2019 2020 2021

ROE 10.1% 11.44% 6.3%

7
 ROA 6.36% 8.49% 4.12%

ROE, ROA of HABECO

2019 2020 2021

ROE 27.93% 22.88% 16.79%
ROA 20.49% 17.39% 12.71%

ROE, ROA of SABECO

ROE flactuated from 2019 to 2021. From 2019 to 2020 has a growth rate of 1.34%, which shows
that the company has performed well in increasing profitability, compared to the same industry
companySABACO with 5.05% (2019-2020), although it is lower but SABECO has a larger
business scale and reaches more customers.
From 2020 to 2021, ROE fell sharply (5.14%) but this is the general trend of the market when
affected by covid 19, competing company SABECO also dropped more sharply, specifically,
down 6.01%. This shows that although HABECO has a smaller market size, it can still control its
profitability despite being heavily influenced by exogenous factors.

5. The statement of cash flow

The cash flow statement shows that the cash flow is facing many problems, from 2019 to 2021
the net change in CF is all negative, only cash flow out. CF from operating is not positive when
consecutively plummeting almost half but at least still profitable in production activities. About
Investing is not so positive when the company's investment activities were negative by more
than 800 billion VND in 2019 and CF from financing was negative over the years. The main

8
problem is that the CF from operating is not enough to offset the CF from investing and
financing, due to the negative Net change CF over the years.
III. Conclusion
HABECO is the leading beer company in the North, but the market share is decreasing due to
many competitors such as SABACO, HENIKEN, .... The company has been positioning the brand
as changing logo, sologan to suit the situation. current picture.
The company should focus again to produce products and distribute output, currently although
CF from operating is decreasing but still profitable, the company should have a plan to regain
market share through marketing campaigns.
In the next few years, the company's financial situation is likely to improve because it is not
currently affected by covid 19, and HABECO is also a long-standing beer brand and also belongs
to the industry, so the ability to break yield is low.

9
 IV. Referent

Vietnam 50 2021 | Brand Value Ranking League Table | Brandirectory (2022). Available at:
https://brandirectory.com/rankings/vietnam (Accessed: 5 July 2022).
Thế khó của đại gia nội cuối cùng trên thị trường bia Việt Nam (2019). Available at:
https://vietnambiz.vn/the-kho-cua-dai-gia-noi-cuoi-cung-tren-thi-truong-bia-viet-nam-
20190831111934408.htm (Accessed: 5 July 2022).
News, V. (2022) Một năm bất an, cắt giảm ăn nhậu: Chục nghìn tỷ 'bốc hơi', VietNamNet News.
Available at: https://vietnamnet.vn/mot-nam-bat-an-cat-giam-an-nhau-chuc-nghin-ty-boc-hoi-
702644.html#:~:text=B%C3%A1o%20c%C3%A1o%20t%C3%A0i%20ch%C3%ADnh%20c%E1%BB
%A7a,l%C3%AAn%20%C4%91%E1%BA%BFn%2028.321%20t%E1%BB%B7%20%C4%91%E1%BB
%93ng. (Accessed: 6 July 2022).
BHN : Kết quả hoạt động kinh doanh Tổng CTCP Bia - Rượu - Nước giải khát Hà Nội |
CafeF.vn (2022). Available at:
https://s.cafef.vn/bao-cao-tai-chinh/BHN/IncSta/2022/0/0/0/0/ket-qua-hoat-dong-kinh-doanh-
tong-ctcp-bia-ruou-nuoc-giai-khat-ha-noi.chn (Accessed: 10 July 2022).

10