Financial Performance Analysis of Greencore Group Plc, Hilton Food Group Plc, and Premier Foods Plc

ACC 3015
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Contents
Introduction......................................................................................................................................3
Section A.........................................................................................................................................3
Strategic plans..............................................................................................................................3
Evaluation of financial performance...........................................................................................5
Investment in best performing company...................................................................................12
Section B........................................................................................................................................13
Sources of internal and external long-term finances.................................................................13
Stakeholder analysis..................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
Financial decision-making is critical to company’s success (Busch and Lewandowski,
2016). This report is aimed at assessing financial performance of three companies listed on
London Stock Exchange – Greencore Group Plc, Hilton Food Group Plc and Premier Foods Plc.
Greencore Group Plc is an Irish company producing and distributing convenience foods and
ingredients. Hilton Food Group Plc is a British company operating as retail food packer.
Company provides meat packaging services to international food retailers. Premier Food Plc is
also a British food manufacturing and distributing company that operates under two reported
segments – grocery and sweet treats. This report has two sections. First section includes
discussion on the strategic plans and analysis of the financial performance of the three companies
by comparing financial and non-financial ratios, to develop a ranking on their performance.
Based on the developed rankings, an investment opportunity case has been developed. In second
section, financing options available to large companies and their stakeholder impact analysis has
been discussed.
Section A
Strategic plans
Strategic planning refers to creating business specific strategies and plans which are in
line with long term aims and objectives of the business (Yang and Baasandorj, 2017).
Financial goals
Figure 1Financial KPI, Greencore Group Plc, 2020
Greencore Group Plc – Company operates with the goal to live up to its vision of
making every day taste better. Due to Covid-19 impact, business has faced disappointing outturn
and has now focused all its goals around building back market and customer confidence and to
regain its profitability. Company’s strategy is designed around three pillars – growth, relevance
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and differentiation. Company believes that its capital allocation model provides it a strong
foundation that enables it to build resilience against challenges. However, uncertainties in the
market like elusive nature of Brexit policies, future impact of pandemic, etc. are able to pose
further disruption. Company plans to improve its profit margin by introducing new food
categories and ramping its production and distribution capabilities like it increased its
capabilities in meal salads and chilled snacking this year and aims to bring first fully recyclable
sandwich skillet in 2021 (Building back with confidence, 2020).
Figure 2 Financial Highlights, 2019, Hilton Food Group Plc
Hilton Food Group Plc – Hilton seeks to build their brand by developing it as a
customers’ brand that provides sustainable value growth to shareholders. They continuously
extend their product and facility range, researches into new technological development and
reducing unit cost to improve profitability. Company has adopted strategy of diversifying their
business offering to grow. They pursue opportunities to develop their cross-category business in
both UK and overseas markets. Company chooses joint ventures, mergers and acquisitions
option to diversify. For example, they have acquired Dalco with 50% investment and option to
investment in remaining 50% in 2024 to diversify into further protein with an aim to expand their
operations into fast-growing vegetarian market (Strategic Report, 2019). They were operational
during Covid-19 lock down phase to support home demands however, have witnessed downfall
in cash flows. Company is also wary about the uncertainties post Brexit on trade deals and
negotiations with EU.
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