Greggs Plc Financial Performance and Competitor Analysis Report

This report provides a comprehensive financial analysis of Greggs Plc, a major bakery chain. It examines the company's financial performance over a three-year period using financial statements and ratio analysis. The analysis includes profitability, liquidity, efficiency, and gearing ratios, providing insi...Read More

Task 3
Q. 7.

Introduction
Greggs Plc company is the largest bakery chain company
established in the year 1939 and headquartered in
Jesmond, Newcastle upon Tyne, United Kingdom. The
company produces different kinds of baked products to
fulfill the customer desires. The presentation depicts to
analyze the business performance over last three years.
Moreover, comparative analysis also has taken place with
competitor Whitbread company.

Financial statements
These are the company's main statements that prepared in
order to determine the business operational and financial
results at the end of the accounting period. There are two
main statement are prepared under this statement that are
income statement and balance sheet. The financial
statements of Greggs Plc is analyzed here through ratio
analysis technique.

Ratio Analysis
Ratio analysis helps for taking effective business
decisions to achieve the business set targets. Different
kind of ratios are computed here in context to Greggs
company for the year 2012, 2013 and 2014.

Ratio sheet

Interpretation
On the basis of above sheet, it can be reported that Greggs
profitability and liquidity position is get improved. However, the
efficiency ratio of the company shows an decreasing trend indicate
that business is not using its assets in an efficient manner. Further,
the gearing ratio indicate that business is using high amount of
equity in its capital structure. On contrary, the investor ratio indicate
that business is enhancing its investor return in terms of earning per
share, dividend cover and price earning ratio.

Competitor analysis

Interpretation
From the above analysis, it can be reported that Whitbread
is earning high profitability as compared to the Greggs Plc.
Moreover, it using its assets very efficiently and earning
high rate of return on equity. However, liquidity position
of Greggs company is much better. Further, the company is
providing high rate of earning per share comparatively
than Whitbread.

Conclusion
From the above presentation, it can be
concluded that as a investor it become
advisable that investor should invest in
Whitbread company due to greater profit
availability, return on equity and dividend
pay out ratio.

References
Scott, W.R., 2014. Financial accounting theory. Pearson Education
Canada.
Stickney, C. and et. al., 2009. Financial accounting: an introduction
to concepts, methods and uses. Cengage Learning.
Dyreng, S.D. and Lindsey, B.P., 2009. Using financial accounting data
to examine the effect of foreign operations located in tax havens and
other countries on US multinational firms' tax rates. Journal of
Accounting Research, 47(5), pp.1283-1316.

Thank you.