Accounting and Finance for Managers: Food Industry Performance Report

This report examines the application of accounting and finance principles within the food industry, focusing on three key organizations: Green Core Group plc, Premier Food plc, and Hilton Food Group plc. Section A provides an overview of the strategic business policies employed by each company, highlighting their objectives and approaches to market positioning. It then delves into a detailed evaluation of their financial performance using various financial ratios such as ROE, profit margins, and turnover ratios, comparing their performance over several years to assess trends and relative strengths. Section B addresses the sources of finance available to these companies, particularly focusing on external sources like equity and loans, and how these are utilized to manage their business operations. The analysis includes the calculation and interpretation of financial ratios to assess profitability, efficiency, and financial health, culminating in a final decision regarding investment opportunities. The report offers a comprehensive overview of financial management within the food industry, providing insights into strategic planning, financial analysis, and investment decision-making.

ACCOUNTING AND FINANCE FOR
MANAGERS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Section A.....................................................................................................................................3
Question 1...................................................................................................................................3
SECTION B.....................................................................................................................................8
Question 2...................................................................................................................................8
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Business organization to maintain record of their day to day transaction and represent
them in front of their internal and external users, use accounting and financial application. This
report has been formulated to define relevance of account and finance by evaluating performance
of three food industry organizations. Which incudes, Green core group plc, Premier food plc &
Hilton food group plc. This report showcase policies and strategies theses organization use for
run their business. In the second part of this report, essential elements and factors require to
collect sources of finance are define in effective and systematic way.
MAIN BODY
Section A
Question 1
a) Overview of strategic business policy used by Green core group plc, Premier food plc &
Hilton food group plc.
Green core group plc: This organization is consider as one of the most popular business
organization of UK which engaged in dealing with food products. This organization run business
as manufacturer, markets and disturber of food and convince food products.
Strategic objectives: Managers for attain their vision formulate future business objectives which
help in achieving their vision. Green Core focus on maintain top position in market area for this
purpose they use effective financial strategy. In order to achieve their business goals organization
focus on food, quality , process and their target market customers. This organization focus on
their long term goal by investing in portfolio for increase their retain business earnings.
Hilton food group plc: This organization is incorporated as multinational organization
which run its business as meat packing organization. However it spread its market share by
running business in providing food packaging services (Barari Nokashti, Banimahd and
Yaghoubnejad, 2018).
Strategic objective of this organization is generally based on spreading their market share
by innovate new business products in market. Managers in order to attract their business
customers focus in investing in long term businesses goals. Management department of Hilton
generally focus on build strong relation with small organizations and their rival business
companies. Which will beneficial to cut throat their competitors.

Premier food plc: It is British multinational organization which engaged in
manufacturing and distribute sauce, ambient food , cake and offer quick meal services This
business entity to spread its market share deal with many multinational organization which
includes Tesco, Sainsbury and other super market and food manufacturing organizations.
Strategic objective of this organization is to generally focusing on maintain position of
organization in market place by effectively maintain quality of Premier Food Plc in market.
Their main focus is to attain their strategic business objective by offering healthy and nutritions
food products. Theses food products are helpful in attract customers of organization. They set
principle and choose those strategies which useful in influence customer for purchase food
products from branch of this organization (Appuhami, 2019).
b) Evaluation of financial performance of organizations by calculating financial ratios.
Financial ratio: Managers use financial management tools for evaluate performance of
their organization with rival business corporations. Following are some ratios which help in
measuring financial performance of food organizations.
GREENCORE
GROUP PLC
3/28/2020 3/30/2019 3/31/2018
ROE using Net income
(%)
34.66 4.55 1.72
ROCE using Net
income (%)
19.12 4.8 2.58
Profit margin (%) 7.48 0.75 0.53
Gross margin (%) 33.84 30.23 31.12
EBIT margin (%) 6.73 2.04 1.84
Collection period
(days)
26 34 30
Credit period (days) 54 50 47
Current ratio (x) 0.69 2.01 0.75

GREENCORE
GROUP PLC
3/28/2020 3/30/2019 3/31/2018
Gearing (%) 156.67 90.47 119.39
Net assets turnover (x) 2.06 1.81 1.49
Non-financial ratios 3/28/2020 3/30/2019 3/31/2018
Shareholders’ funds
per employee
26 64 58
Total assets per
employee
100 173 167
HILTON FOOD
GROUP PLC
3/28/2020 3/30/2019 3/31/2018
ROE using Net income
(%)
17.23 17.95 15.2
ROCE using Net
income (%)
9.02 11.98 12.43
Profit margin (%) 2.38 2.63 2.52
Gross margin (%) 16.17 12.69 11.93
EBIT margin (%) 3.08 2.8 2.58
Collection period
(days)
37 31 30
Credit period (days) 54 50 47
Current ratio (x) 1.05 1.23 1.2
Gearing (%) 175.87 66.57 36.16

HILTON FOOD
GROUP PLC
3/28/2020 3/30/2019 3/31/2018
Net assets turnover (x) 3.58 5.56 6.53
Non-financial ratios 3/28/2020 3/30/2019 3/31/2018
Shareholders’ funds
per employee (
38 38 44
Total assets per
employee
181 121 116
PREMIER FOODS
PLC
3/28/2020 3/30/2019 3/31/2018
ROE using Net income
(%)
income (%)
2.77 -3.51 0.76
ROCE using Net
income (%)
3.37 1.16 2.94
Profit margin (%) 6.33 -5.18 2.55
Gross margin (%) 40.94 44.12 40.42
EBIT margin (%) 11.25 0.55 8.48
Collection period
(days)
27 29 24
Credit period (days) 65 65 59
Current ratio (x) 0.98 0.78 0.78
Gearing (%) 64.91 105.83 106.9
Net assets turnover (x) 0.32 0.42 0.42
Non-financial ratios 3/28/2020 3/30/2019 3/31/2018

PREMIER FOODS
PLC
3/28/2020 3/30/2019 3/31/2018
Shareholders’ funds
per employee
404 230 234
Total assets per
employee
729 533 540
ROE using Net income (%): This is part of profitability ratio. Which help in analysing
ability of generate profit by running business operations. This graphical representation showcase
that GREENCORE GROUP PLC able to generate more return on earning as compare with its
rival business organizations. Value of Hilton earning ratio has been decile which showcase that
this organization is not able to generate its revenue by using their net income (Chen,
Gallagherand Warren, 2019).

ROCE (Return on capital employee) (%): By calculating this ratio manager can
evaluate rate of generating business profit by using capital employed of organization. Rate of
generating income is increase in all the three organizations however GREEN CORE GROUP
PLC's ability to generate is higher then other business entities.
GREENCORE GROUP PLC Hilton Food group plc
0
5
10
15
20
25
30
35
40
2020 2019 2018
0
5
10
15
20
25

Net profit margin: This ratio is calculated in order to measure relationship between
profit and net sales. When the rate of net margin in high it is symbol of growth of business
organization. By evaluating net margin ratio of all the three companies it recognized that
GREENCORE GROUP PLC rate of net margin has been increases since 2018, and Hilton net
profit ratio also increase however in cases of Premier their profit ratio has been decline which
showcase that as compare to other organizations Premier foods plc not able to manage their
selling related businesses policies.
2020 2019 2018
-6
-4
-2
0
2
4
6
8
10

Gross margin: This is also a part of profitability ratio. By calculating this ratio manager
measure ability of their organization to generate business revenue before deducting any kind of
deductions. On the basis of calculating gross margin ratio this graphical representation showcase
that value of Green Core PLC '[s gross margin ratio was measure at 30.23 in 2019 and the rate of
gross margin has been increase in 2020, in case of Hilton this organizations' gross margin ratio
also increase from 12.6 to 16.1. However Premier foods plc not able to enhance their rate of
gross margin earnings (MohammadRezaei and Mohd‐Saleh, 2018).
EBIT:Ability of managerial profit before detection of tax items. Green Core PLC as compare
with other organization have efficiency to effectively manage their profits. By using this ratio
manager can evaluate the rate of earning in order to formulate future business policies.
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
10
20
30
40
50

Collection period: This ratio is used for measuring time required to collect money from
debtors. Evaluating ratio by using chart help in determine that Premier foods plc took less time
as compare to other business organizations to collect money from their debtors. Which showcase
that even this organization not generate high rate of profit but they use effective tools to manage
their debtors.
Credit period: This ratio help in determine time required to fulfil debt liability of
creditors. This graphical representation showcase that organization Hilton have ability to pay
their creditors money within short period of time Premier foods plc tool much more time for
fulfil liability of creditors.
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
2
4
6
8
10
12

Current ratio: Manager measure this ratio for determine relation ship between current
asset and current business liabilities. Value of current ratio of Green Core Plc and Hilton has
been decile however in 2019 value of current ratio was measure at 0.78 which increase in 2020
from 0.78 to 0.98 this showcase positive changes which means that Premier foods plc have
sufficient current asst to pay their debt liability.
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
10
20
30
40
50
60
70