MIRA INFORM REPORT
|
Report Date : |
04.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
MEAD
JOHNSON NUTRITION [THAILAND]
LTD. |
|
|
|
|
Formerly Known As : |
BRISTAL-MYER
SQUIBB THAI LTD |
|
|
|
|
Registered Office : |
14th Floor, Exchange Tower, 388 Sukhumvit Road, Klongtoey, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
01.12.1972 |
|
|
|
|
Com. Reg. No.: |
0105515008641 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor & Exporter of Consumer Products |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment
Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com while quoting
report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
MEAD
JOHNSON NUTRITION [THAILAND]
LTD.
[FORMER
: BRISTAL-MYER SQUIBB
THAI LTD.]
SUMMARY
BUSINESS
ADDRESS : 14th FLOOR,
EXCHANGE TOWER,
388
SUKHUMVIT
ROAD, KLONGTOEY,
BANGKOK
10110
TELEPHONE : [66] 2725-1000
FAX :
[66] 2725-1057
E-MAIL ADDRESS : meadhohnson.thai@bms.com
REGISTRATION
ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED
: 1972
REGISTRATION
NO. : 0105515008641
CAPITAL REGISTERED : BHT. 300,000,000
CAPITAL PAID-UP : BHT.
300,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
JORGE OSWALDO PINEDO,
AMERICAN
GENERAL MANAGER
NO.
OF STAFF : 500
LINES
OF BUSINESS : CONSUMER PRODUCTS
MANUFACTURER, DISTRIBUTOR & EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject was
established on December
1, 1972 as
a private limited
company, under the
originally registered name “Bristol-Myers
[Thailand] Ltd.”. On
May 29, 1975,
its registered name
was changed to “Grove Ltd.”,
and “Mead Johnson
[Thailand] Ltd.”, on May 25,
2001, as well as changing
again to “Bristol-Myers Squibb
Thai Ltd.”, on
November 1, 2005.
On March 1,
2006, there was
a merger between
Bristol-Myers Squibb Thai
Ltd. and Bristol-Myers
Squibb [Thailand] Ltd.,
Thailand branch, then
operated under the
registered name BRISTAL-MYERS SQUIBB THAI LTD., which the business
objective to manufacture
and market wide
range of consumer
products to both
domestic and international
markets.
On January 31, 2009,
the subject transferred
the pharmaceutical and
medical business to Bristal-Myers
Squibb Pharma
[Thailand] Ltd. Therefore, the subject’s
business was handled
in infant and
children’s nutrition products
only.
On February 2 2009, the
subject’s name was
changed to MEAD JOHNSON
NUTRITION [THAILAND] LTD.
It currently employs
approximate 500 staff.
At present, the
subject become to
be a wholly
owned subsidiary of Blisa L.L.C. of
U.S.A.
The subject’s registered
and business address
was initially located
at 10/10-11 Moo
16, Srinakarin Rd., Bangkaew, Bangplee, Samutprakarn 10540.
In 2006, subject’s
registered address was
relocated to 14th Flr., Exchange
Tower, 388 Sukhumvit Rd., Klongtoey,
Bangkok 10110, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Thanida
Tayangkanont |
[x] |
Thai |
45 |
|
Mr. Choosak
Laymongkol |
|
Thai |
46 |
|
Ms. Monnapa
Kongmanwattana |
|
Thai |
40 |
|
Mr. Boonchai
Kowpanich |
[x] |
Thai |
49 |
|
Mr. Pichet
Ithkor |
|
Thai |
50 |
|
Mr. Jorge Oswaldo Pinedo |
[x] |
American |
43 |
AUTHORIZED PERSON
One of
the above directors
[x] can jointly
sign with one of the
rest directors on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Jorge Oswaldo Pinedo is
the General Manager.
He is American
nationality with the
age of 43
years old.
Mr. Boonchai
Kowpanich
is the Executive
Director of Production.
He is Thai
nationality with the
age of 49 years
old.
Mr. Paisal
Dangputhanapol is
the Human Resources
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activities
are the manufacturer &
distributor of high
quality instant and
children’s nutrition products,
mainly children powder
milk and UHT
milk, under the
license brands of “Alacta”
and “Enfa” as
follows
Product Brand
Powder milk “Alacta 100”, “Enfa Mama”,
“Enfa MamaA+”,
“EnfagrowA”, “EnfakidA+”
UHT milk “Alacta 100
1+” “Alacta 100 3+”
MAJOR SUPPLIER
Mead Johnson and
Company, LLC :
U.S.A.
SALES
[LOCAL]
90% of its
products is sold
locally to Thai Government,
wholesalers, supermarkets and
hospital.
EXPORT
10% is exported
to Singapore, Hong
Kong, Malaysia, Indonesia
and Japan.
SUBSIDIARY AND AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
nor affiliated company
here in Thailand.
LITIGATION
Bankruptcy and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Sales are by
cash or on the
credit term of
30 days.
Local bills are
paid on the
credit term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd. :
[Amata Nakorn Branch
: 700/2 Moo
1, Bangna-Trad Rd., Donhuaroh, Muang,
Chonburi]
EMPLOYMENT
The subject employs
approximately 500 staff. [office
and sales staff,
including branches office]
LOCATION DETAILS
The premise is
rented for operating
administrative office at
the heading address.
Premise is located
in commercial / residential area.
Factory is located
at 700/428 Moo
7, T. Donhuaroh, A. Muang, Chonburi 20000.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED US$
100 MILLION.
COMMENT
Subject
has good business
performance during the
past several years.
However, consumption slowdown
from economic uncertainties
had decreased demand
of such products.
Nevertheless, in line with
the economic recovery since 2010, the
industry has witnessed
an uptrend. Increased consumption of infant
powder milks has contributed
significantly to the improved
financial result for
the year.
FINANCIAL INFORMATION
The capital was
initially registered at Bht. 50,000 divided
into 500 shares
of Bht, 100
each.
On October 31,
2005, the capital
was increased to Bht.
20,000,000 divided into
200,000 shares of Bht. 100 each
with fully paid.
On February 16,
2009, capital was
increased to Bht.
300,000,000 divided into 3,000,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at December 1,
2009]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Blisa L.L.C. Nationality: American Address : 345
Park Avenue, New
York, U.S.A. |
2,999,998 |
100.00 |
|
Mead Johnson Nutrition
Company Nationality: American Address : 1209
Orange Street County
of New Castle,
Wilmington, Delaware, U.S.A. |
1 |
- |
|
Mead Johnson &
Company LLC Nationality: American Address : 1209
Orange Street County
of New Castle,
Wilmington, Delaware, U.S.A. |
1 |
- |
Total Shareholders : 3
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.:
Ms. Duangrudee Choochart No. 4315
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2010 & 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
364,717,288 |
673,528,314 |
|
Trade Accounts Receivable |
1,408,017,754 |
1,217,753,447 |
|
Other Receivable-Related Company |
411,947,678 |
439,553,686 |
|
Inventories |
1,174,960,911 |
947,884,457 |
|
Other Current Assets |
217,354,375 |
41,649,070 |
|
|
|
|
|
Total Current Assets
|
3,576,998,006 |
3,320,368,974 |
|
|
|
|
|
Fixed Assets |
834,545,445 |
875,150,777 |
|
Other Assets |
17,124,188 |
18,030,300 |
|
Total Assets |
4,428,667,639 |
4,213,550,051 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
912,436,118 |
750,134,514 |
|
Other Payable-Related Company |
217,989,706 |
368,893,947 |
|
Accrued Income Tax |
368,966,457 |
784,167,082 |
|
Accrued Expenses |
293,003,344 |
220,173,422 |
|
Current Portion of Financial Lease Contract Liabilities |
4,524,121 |
3,308,991 |
|
Current Portion of Estimated
Liabilities for Benefit Employees |
689,664 |
1,444,562 |
|
Other Current Liabilities |
79,914,201 |
164,482,224 |
|
|
|
|
|
Total Current Liabilities |
1,877,523,611 |
2,292,604,742 |
|
Financial Lease Contract
Liabilities |
17,478,114 |
13,658,916 |
|
Deferred Income |
- |
30,525,189 |
|
Estimated Liabilities for Rental |
15,500,000 |
15,500,000 |
|
Estimated Liabilities for Benefit
Employees |
16,035,028 |
16,675,491 |
|
Total Liabilities |
1,926,536,753 |
2,368,964,338 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 3,000,000 shares |
300,000,000 |
300,000,000 |
|
|
|
|
|
Capital Paid |
300,000,000 |
300,000,000 |
|
Statutory Reserve |
30,000,000 |
30,000,000 |
|
Retained Earning- Unappropriated |
2,172,130,886 |
1,514,585,713 |
|
Total Shareholders' Equity |
2,502,130,886 |
1,844,585,713 |
|
Total Liabilities & Shareholders' Equity |
4,428,667,639 |
4,213,550,051 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales Income |
9,016,822,283 |
8,271,693,395 |
|
Other Income |
93,756,169 |
1,899,585,083 |
|
Total Sales |
9,110,578,452 |
10,171,278,478 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
5,076,270,489 |
4,706,927,322 |
|
Selling Expenses |
1,459,876,870 |
1,322,437,589 |
|
Administrative Expenses |
466,867,092 |
559,838,337 |
|
Loss on Exchange Rate |
46,848,115 |
- |
|
Total Expenses |
7,049,862,566 |
6,589,203,248 |
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
2,060,715,886 |
3,582,075,230 |
|
Financial Cost |
[1,195,744] |
[679,784] |
|
Profit / [Loss] before Income
Tax |
2,059,520,142 |
3,581,395,446 |
|
Income Tax |
[641,149,969] |
[1,049,678,771] |
|
Loss on Operation |
- |
[2,699,078] |
|
|
|
|
|
Net Profit / [Loss] |
1,418,370,173 |
2,529,017,597 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.91 |
1.45 |
|
QUICK RATIO |
TIMES |
1.16 |
1.02 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
10.80 |
9.45 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.04 |
1.96 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
84.48 |
73.50 |
|
INVENTORY TURNOVER |
TIMES |
4.32 |
4.97 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
57.00 |
53.74 |
|
RECEIVABLES TURNOVER |
TIMES |
6.40 |
6.79 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
65.61 |
58.17 |
|
CASH CONVERSION CYCLE |
DAYS |
75.87 |
69.07 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
56.30 |
56.90 |
|
SELLING & ADMINISTRATION |
% |
21.37 |
22.76 |
|
INTEREST |
% |
0.01 |
0.01 |
|
GROSS PROFIT MARGIN |
% |
44.74 |
66.06 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
22.85 |
43.31 |
|
NET PROFIT MARGIN |
% |
15.73 |
30.57 |
|
RETURN ON EQUITY |
% |
56.69 |
137.10 |
|
RETURN ON ASSET |
% |
32.03 |
60.02 |
|
EARNING PER SHARE |
BAHT |
472.79 |
843.01 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.44 |
0.56 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.77 |
1.28 |
|
TIME INTEREST EARNED |
TIMES |
1,723.38 |
5,269.43 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
9.01 |
|
|
OPERATING PROFIT |
% |
(42.47) |
|
|
NET PROFIT |
% |
(43.92) |
|
|
FIXED ASSETS |
% |
(4.64) |
|
|
TOTAL ASSETS |
% |
5.11 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
44.74 |
Impressive |
Industrial
Average |
32.44 |
|
Net Profit Margin |
15.73 |
Satisfactory |
Industrial
Average |
17.21 |
|
Return on Assets |
32.03 |
Satisfactory |
Industrial
Average |
35.18 |
|
Return on Equity |
56.69 |
Acceptable |
Industrial
Average |
91.94 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales after accounting for the
cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. The company’s figure is 44.74%. When
compared with the industry average, the ratio of the company was higher. This
indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 15.73%.
When compared with the industry average, the ratio of the company was lower.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is 32.03%.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. When compared with the
industry average, it was lower, the company's figure is 56.69%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
1.91 |
Impressive |
Industrial
Average |
(176.01) |
|
Quick Ratio |
1.16 |
|
|
|
|
Cash Conversion Cycle |
75.87 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's
figure is 1.91 times in 2010, increase from 1.45 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 1.16 times in 2010,
increase from 1.02 times, although excluding inventory so the company still
have good short-term financial strength.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the
benefit from payment terms from its creditors. It meant the company could survive
when no cash inflow was received from sale for 76 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.44 |
Impressive |
Industrial
Average |
0.61 |
|
Debt to Equity Ratio |
0.77 |
Impressive |
Industrial
Average |
1.83 |
|
Times Interest Earned |
1,723.38 |
Impressive |
Industrial
Average |
81.56 |
Debt to Equity Ratio a measurement of how much suppliers, lenders, creditors
and obligors have committed to the company versus what the shareholders have
committed. A lower the percentage means that the company is using less leverage
and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1723.38 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.44 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
10.80 |
Impressive |
Industrial
Average |
8.59 |
|
Total Assets Turnover |
2.04 |
Acceptable |
Industrial
Average |
3.11 |
|
Inventory Conversion Period |
84.48 |
|
|
|
|
Inventory Turnover |
4.32 |
Impressive |
Industrial
Average |
0.02 |
|
Receivables Conversion Period |
57.00 |
|
|
|
|
Receivables Turnover |
6.40 |
Acceptable |
Industrial
Average |
8.56 |
|
Payables Conversion Period |
65.61 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.38 |
|
UK Pound |
1 |
Rs.72.21 |
|
Euro |
1 |
Rs.62.87 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.