Maeil Dairy Industry Co., Ltd: Company Profile and SWOT Analysis

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Maeil Dairy Industry Co., Ltd: Company Profile and SWOT Analysis
Maeil Dairy Industry Co., Ltd



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Maeil Dairy Industry Co., Ltd Financial Snapshot



Operating Performance

Fast Facts

98-5, Unnee-Dong, Seoul, 110-350,South The company reported revenue of US$941.72 million

Headquarters Address

Korea during the fiscal year 2010 (2010). The company's

revenue grew at a CAGR of 3.91% during 2006–

Telephone + 82 2 21272114

2010, with an annual growth of 14.35% over 2009. In

2010, the company recorded an operating margin of

Fax + 82 2 36750501 2.49%, as against 3.18% in 2009.



Website www.maeil.com

Revenue and Margins

Ticker Symbol, Stock Exchange 005990, KOSDAQ



Number of Employees 1,792



Fiscal Year End December



Revenue (in US$ million) 941.72



Revenue (in KRW million) 1,092,276.85









SWOT Analysis Return on Equity



Strengths Weaknesses The company recorded a return on equity (ROE) of

8.43% for 2010, as compared to its peers, Binggrae

Increase in Profitability Decrease in Return on Working Capital Co., Ltd. (Ticker: 005180), Namyang Dairy Products

Co.,Ltd. (Ticker: 003920) and Dean Foods Company

(Ticker: DF), which recorded ROEs of 13.08%, 9.97%

Wide Array of Products and 6.10% respectively. The company reported an

operating margin of 2.49% in 2010.

Wide Geographic Operation

Return on Equity

Opportunities Threats



Economic Recovery Food Safety Concerns



Growing Population Issues in African Countries



Rise in Labor Cost









Liquidity Position



The company reported a current ratio of 1.05 in 2010,

as compared to its peers, Binggrae Co., Ltd.,

Namyang Dairy Products Co.,Ltd. and Dean Foods

Company, which recorded current ratios of 3.29, 4.97

and 1.26 respectively. As of December 2010, the

company recorded cash and short-term investments

of worth US$26.25 million, against US$56.40 million

current debt. The company reported a debt to equity

ratio of 0.54 in 2010 as compared to its peers,

Binggrae Co., Ltd., Namyang Dairy Products Co.,Ltd.

and Dean Foods Company, which recorded debt to

equity ratios of 0.02, 0.00 and 2.71 respectively.









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Maeil Dairy Industry Co., Ltd - SWOT Profile Page 1

Maeil Dairy Industry Co., Ltd



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TABLE OF CONTENTS



1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview ................................................................................................................................................5

1.2 Business Description ..............................................................................................................................................5

1.3 Major Products and Services .................................................................................................................................6

2 Analysis of Key Performance Indicators ............................................................................................... 7

2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7

2.2 Key Financial Performance Indicators ...................................................................................................................9

2.2.1 Revenue and Operating Profit ...........................................................................................................................9

2.2.2 Asset, Liabilities and Capex .............................................................................................................................10

2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................11

2.2.4 Operational Efficiency ......................................................................................................................................12

2.2.5 Solvency ..........................................................................................................................................................13

2.3 Competitive Benchmarking ..................................................................................................................................14

2.3.1 Market Capitalization .......................................................................................................................................14

2.3.2 Efficiency ..........................................................................................................................................................15

2.3.3 Capital Expenditure ..........................................................................................................................................16

2.3.4 Turnover – Inventory and Asset .......................................................................................................................17

3 SWOT Analysis ...

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