Financial Analysis and Performance of Food and Beverage Companies

This report provides a comprehensive analysis of three companies: Green Core Group plc, Hilton Food Group plc, and Premier Food plc, all operating within the food and beverage industry. The report is divided into two sections. The first section focuses on determining the goals and objectives of each company, highlighting their strategic aims and business plans. The second section presents a detailed performance analysis, utilizing various financial ratios such as Return on Equity (ROE), Return on Capital Employed (ROCE), profit margins, and turnover ratios to evaluate their financial health and efficiency. The analysis covers the years 2018-2020, providing insights into each company's performance trends and comparative strengths and weaknesses. The report also includes non-financial ratios, such as shareholders' funds and total assets per employee, to provide a broader perspective on company performance. The conclusion summarizes the findings and references are provided to support the analysis.

Accounting and Finance for Managers
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Section A.....................................................................................................................................3
1a. Determine the goals and objectives of all three companies..................................................3
1b Performance analysis of the three companies........................................................................4
Section B.....................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
2

INTRODUCTION
The report has covered three distinct companies which are as follow Green core group
plc, Hilton food group plc and Premier food plc (Davies and Crawford, 2011). All these
companies are belonging to food and beverage industry and they all have separate goals and
objectives to be accomplished in certain time duration. The report has been completed in two
parts where first part is based on the detailed analyses of goals and objectives of all companies.
Moreover the financial performance of these companies are been analysed and evaluated in
comprehensive way with the help of ratio analyses. In the second part of the report the different
type of sources related to finance are described which are used for financial assistance.
MAIN BODY
Section A
Question 1
1a. Determine the goals and objectives of all three companies
Green core group plc- This company is popularly known as the producer of ready
meals. They provide its ready food to various popular supermarkets and other clients dealing in
fast food in UK (Anandarajan, Anandarajan and Srinivasan, 2012).
Strategic objectives- In context of Green core group plc there main objective is to accomplish
corporate goals and what steps they should take with the motive to achieve its purpose. Strategic
goals are defined as success goals which are typical in nature which are used when the company
is planning to introduce new product or what to increase in sales and revenue in the marketplace.
Green core group plc's objectives are as follow-
In this growing food market the strategy used by company to improve and enhance its
demand in marketplace are to attract large number of potential customers. The business plan of
the company is to rebuild its connection with its customers by identifying the spending capacity
of the customers along with increasing its value for portfolios and to increase its number of
potential customers. The process to achieve its business aim is dependent on four key aspects
which are food, its quality, the target audience, Green core honesty and business sustainable. The
execution of the business plan of the company involves in depth knowledge and understanding of
the set goals and according to the finance budget set by the company to carry business operations
in effective and efficient manner.
3

Hilton food group plc- In context of Hilton the focus of the company is to set plans for
long period of time with the motive to gain competitive advantage and to enhance its value. The
brand image of the company is one of the strong point as it influence and attract large number of
customers. The company has able to cover the marketplace with its multinational range of
products as it has strong alliances in market (Power, 2012). The main focus of the company is to
establish strong relation with its corporate partners with the motive to reduce the number of
rivals in marketplace. Hilton is more focusing on doing thinks in the desirable manner that is by
designing and engaging customers and to make work succeed. The principles desired by the
company make them think and feel like an entity and there behaviour as individuals. The staff on
the bases of the common principles and the set business strategies act as supporting partners
alliance.
Premier food plc- The main purpose of the company is to offer the great and quality
food to its potential customers and business clients. The food provided to customers contain
nutritious substance which are good for health and are easy to cook as in this current scenario
people prefer healthy and easy to cook food. This is one of the main reason that company has
covered more than 90% area of the marketplace in British that is households prefer this brand
more than any other brand. They are also helping other firms to grow by promoting their
business and its main purpose is to show that how business collaborators in food industry able to
do well and achieve success in this changing and growing business world. Furthermore the
business unit is focusing on building various operational sites which provided desire results are
genuine (Brown, Beekes and Verhoeven, 2011). The mutual principles set by the business are
helping workers within the organisation to collectively choose process and also motivates them
to carry their work or assigned task in the effective and efficient manner. From the last three year
progress report of the organisation it has been identified that it has able to increase its profit and
revenue in the marketplace by adopting the principles set by the company and able to established
effective communication among work force as the changes of mistake and conflicts are reduced.
1b Performance analysis of the three companies
Green core group plc
GREENCORE GROUP
PLC 3/28/2020 3/30/2019 3/31/2018
ROE using Net income 34.66 4.55 1.72
4

(%)
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
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
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
5

Current ratio (x) 1.05 1.23 1.2
Gearing (%) 175.87 66.57 36.16
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
PREMIER FOODS
PLC 3/28/2020 3/30/2019 3/31/2018
ROE using Net
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
Shareholders’ funds
per employee 404 230 234
Total assets per 729 533 540
6

employee
Interpretation:
ROE using Net income (%)
Analyse- On the basis of the above graph it has been analyses that the return on earning
(ROI) factor of Green Core company has shown an increment in year 2019 and 2020. The graph
has shows the significant growth of the company in improving and enhancing its return in the
marketplace. On the other hand it has been observed that the performance of Hilton is constant in
year 2019 and 2020. As there constant performance show that they would be able to produce
high returns on equity (Ryan, 2010). Where as in context of Premier food plc it has been
identified that the performance of company is quite weak in comparison to other two business
entities.
ROCE (Return on capital employee) (%)
Analysis- From the above graph it has been identified that Green core group has able to
manage its capital employee in much better manner compared to other two business organisation.
Green core group has approximately 19.12% rate in managing its return on capital employed and
7
2020 2019 2018
0
5
10
15
20
25
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC

is constantly increasing it. While looking at the performance of Hilton food plc it has been
evaluated that there performance has dropped in year 2020 according to its ratio analyses that is
reduced up to 2.96%. Where as whiling evaluating the graph of Premier food plc it has been
identified that its performance is poor in comparison to other two companies and they need to
work on its strategies with the motive to reduce its capital expenses (Hopwood and Unerman,
2010).
Net profit margin
8
2020 2019 2018
-6
-4
-2
0
2
4
6
8
10
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC

Analysis- From the above graph it has been identified that Green core plc has able to boost its
performance in year 2020 in comparison to year 2019 with the huge margin variation. In context
of Premier food plc they have faced problem due to high amount of expenses that is negative net
margin of -5.18%. Moreover in case of Hilton food group plc, there performance is constant
from last three years which shows its strong presence in the m,workplace.
Gross margin
Analysis- From the above graph it has been analysis that Green core group plc and premier food
plc have to manage its gross margin from last three years in effective manner. Moreover whiling
comparing the companies the performance of Premier food plc is better. Whiling analysing the
graph of Hilton it has been identified its performance is quite weak and they have to take step in
order to improve them. The reason behind this is due to high cost of sales and low revenue.
EBIT
9
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
5
10
15
20
25
30
35
40
45
50
2020
2019
2018

Analysis- From the above graph it has been identified that Hilton food group plc they are able to
manage its earnings before interest and tax constant due to its great efficiency. Whereas green
core group plc and premier food plc have face major issues in growth in year 2019 and able to
improve its performance in year 2020 (Osmani and et.al., 2017).
Collection period
Analyse- From the above graph it has been identified that Premier food plc would be able to
recover its debt in the less time duration in comparison to other two companies. Where as time
take by Hilton group plc is quite long in recovering its debts. In context of Green core plc they
have able to manage the things in effective manner that is time duration for collecting debt has
reduced in year 2020 as compared to year 2019.
Credit period
10
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
2
4
6
8
10
12
2020
2019
2018
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
5
10
15
20
25
30
35
40
2020
2019
2018

Analysis- Green core food plc and Hilton group plc are working on the same scale that is are
having similar credit period and also are paying their debts on same time. Where as Hilton food
plc is consuming more time in paying its debts.
Current ratio
Analysis- The ideal ratio proposing is 2:1 and from the above graph it has been identified that
Green core group plc has able to manage its ratio appropriately in year 2019. Where as other two
11
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
10
20
30
40
50
60
70
2020
2019
2018
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2020
2019
2018

companies are not able to manage its current ratio due to higher proposition of current liabilities
(Gippel, Smith and Zhu, 2015).
Net assets turnover ratio
Analysis- From the above graph it has been evaluated that Hilton group plc has manage
its net asset turnover ratio in better way because it able to manage its assets in less time and in
less cost. Whereas premier food plc is not able to manage its ratios in proper manner.
Non financial ratios
Shareholder fund per employee
12
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
1
2
3
4
5
6
7
2020
2019
2018