Accounting and Finance for Managers

Accounting and Finance
for Managers

TABLE OF CONTENTS
TABLE OF CONTENTS...............................................................................................................2
INTRODUCTION...........................................................................................................................3
1.a Strategic Review................................................................................................................3
1.b Performance Evaluation...................................................................................................5
1.c Argument.............................................................................................................................8
2.a Business Financing...........................................................................................................9
2.b Long-term financing by A.G. Barr PLC through Debt................................................11
CONCLUSION.............................................................................................................................11
REFERENCES............................................................................................................................13

INTRODUCTION
Accounting is a record and arrangement of the financial information periodically
in an orderly manner. The accounting when used by the managers to make decisions
and management purposes then it is known as accounting for managers. In this report
the analysis of the three companies that are part of the beverage industry is made. The
companies are A.G. Barr PLC, Britvic PLC, and Coca Cola European Partners PLC.
These companies are the part of London Stock Exchange. Further, the use of different
sources of finance viz. Internal and External sources is described and comparison and
analysis of the financial information taken from annual report of these companies of
different years is been made to show performance of the companies.
1.a Strategic Review
A.G. Barr PLC
For the company the year 2020 was not a profitable year as compared to
previous years.
Its core soft drinks business underperformed. The first half of the year 2020 hit almost
every economy around the globe due to global pandemic. After half a year the company
took strategic focus on selling in volumes and the performance increase significantly.
Challenges
2020
1. The soft drink business underperformed in the year 2020 as expected by the
company.
2. PepsiCo Inc. acquire the Rockstar Energy Beverages. The company holds the
rights of distribution of Rockstar Brand.
2019
1. Revenue of the company fell by 8.4% and statutory profit before tax fell 16%.
2. Company was facing difficulties in maintaining long-term investments in brands
and business.
Success Indicators
1. Cocktail market share of the company grows to 9.9% and outlet selling up by
3.2%.

Key Strategies
In 2018 the company follows short-term volume trading then value. This strategy results
in the increase of the market shares of A.G. Barr PLC.
Later in 2019 the company shifted to its long-term value driven strategy. The strategy
helps in align the company close to its competitors and establish its consumer price
positioning in the market.
Britvic PLC
The company perform its operations in Great Britain, Brazil and Rest of the
World. 63% of the share holds by Great Britain. With the global restrictions the company
is also affected by the downturn. The company in 2020 launches new variants and
packs of soft drinks in the market. The company lead the soft drink industry by making
low calorie per serve portfolio.
Challenges
2020
1. The company's water factory in Ireland shut down for a short-period because of
demand drop.
2. The company's revenue decline in the Q2 of the year to 1.4% and in Q3 to 16.3%
and in Q4 fell by 11.3% than last year.
Success Indicators
1. In year 2020 the company reduced its debt portfolio by Pound 46 Million. In Q1
the revenue as compared to previous year increases to 2.6%.
2. The company in Great Britain increased its market share of 1.5%.
3. The company's Pure Coconut water brand becomes the third largest brand by
increase in 15% market share.
Key Strategies
1. In the month of October, the company signed an agreement of bottling
agreement with PepsiCo.
2. The company is focused on growing market share and value to the customer’s
company increase in its sales in flavoured soft drinks brands by 7.4% by the
second half of the year.
Coca Cola European Partners PLC