Financial Performance Analysis and Investment Decision: Food Companies

This report provides a comprehensive financial analysis of three food companies: Green Core Group, Hilton Food Group, and Premier Food plc. It begins with a brief overview of each company's strategic review policy, highlighting their business objectives and key elements. The report then delves into a detailed analysis of the companies' financial performance over a three-year period (2018-2020), utilizing various financial ratios such as ROE, profit margin, gross margin, current ratio, and others. The analysis includes graphical representations of the ratios to illustrate trends and comparisons. Finally, the report concludes with a final decision regarding investment opportunities, based on the financial performance analysis and strategic reviews, offering insights into the companies' strengths, weaknesses, and overall financial health. The report also briefly mentions the internal and external sources of finance for the Green Core Group plc.

Accounting and Finance for Managers

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION A.....................................................................................................................................3
Brief description regarding strategic review policy of Green core group, Hilton food group &
Premier food plc. ........................................................................................................................3
Analysis financial performance of companies............................................................................6
c) Final decision regarding investment opportunity..................................................................10
SECTION B...................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
SECTION A
Brief description regarding strategic review policy of Green core group, Hilton food group &
Premier food plc.
Green core group: This organization was established in 1991. Headquarter of this food
company was situated at Dublin Ireland. This organization is run business in food sector and
become largest food suppler in UK and Ireland companies. This organization provides various
kinds of food products which includes, chilli sauces, cooking sauce, dps, sandwich and food
materiel for making food dishes.
Strategic business objective: Main purpose of this organization is to attain its strategic corporate
business goals by completing objective of all the steps which they take for achieve their goal.
Theses goals can be define as set of further business plan which design oat the time when
bushiness proportion introduce new products in business market.
In present time when the competition rate is getting high in that case the main purpose of
this organization is to attract their group of target market customer. Green Core Group is depend
on its 4 key elements to attain their business vision, these are, quality of food products,
preference of target market group, sustainability and promotion strategies use for influence
customers. For executive business plan manager need to formulate financial budget which is
formulated on the basis of understanding market condition (Anessi-Pessina and Sicilia, 2020).
Hilton food group plc- This organization is engaged in running food packaging business.
Headquarter of this organization was situated at UK. The main strategic objective of this
organization is to attain competitive business advantage by creating sustain supply chain for their
brand and customers. They able to attract customer as goodwill of this organization is strongly
build among public. They took long term decision refer attain their strategic management goal in
order to cover large market area. It present strong alliance in market and on the basis of that they
can offer multiple food and packaging service in market. Hilton in order to maintain its position
in market focus on improve relation with its rival business industries which help in reduce the
rate of competition for maintain position of Hilton in market.
Premier food plc:It is food manufacture organization which headquarter is situated in St
Albans , Hertfordshire. This organization work for manufacturing of cake. or other food dishes

or items formant repute organization which includes, Nestle, Cad-bury. Strategic objective of
Premier food plc is to provides best quality of food products which include healthy nutritions. It
is one of the leading trading organization which famous for offering high quality of healthy food
products. To attain their competitive strategic objective this organization generally focus on
collaborate with business industries (Barari Nokashti, Banimahd and Yaghoubnejad,2018).
On the basis of evaluating financing performance of last 3 years it is measurable that
organization by providing best quality of food products ad service their profit rate has been
increases. Premier covered more then of 85 % of UK's food markets they engaged in promotion
business of other organizations which will beneficial for maintain their goodwill in market.
Green core group plc:
GREENCORE GROUP
PLC 3/30/2019 3/31/2018
ROE using Net income
(%) 3.66 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
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 GREENCORE
100 173 167

GROUP PLC
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
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
employee 729 533 540
Analysis financial performance of companies.
ROE using Net income (%): This ratio used by organizations in order to recognize the
ability of firm to generate revenue by using capital (Cen, Tong and Sun, 2017).

From the calculation of ratio, which represent as graphical representation it recognized
that the value of return on employed of Green Core Plc has been increases since 2018 on the
other side Hilton able to generate revenue in 2018 ,2019 but it decile in 2019 and value of
Premier Food Plc goes into negative in 2019 but organization improve its performance by
providing best quality of products.
Credit period: This ratio is calculated to recognize time require to pay debt money to
creditor.
This graphical scale showcase that value of credit period of time of Green Core and
Hilton Plc was smilier however PREMIER FOODS PLC took more time in order to fulfill their
credit debt liability (Chen, 2016).
Collection period: This ratio measure time required by organization to collect money from their
debtors.
GREENCORE GROUP PLC Hilton Food group plc
0
5
10
15
20
25
30
35
40
2020
2019
2018
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
10
20
30
40
50
60
70

As compare to Hilton and Green Core PLC , PREMIER FOODS PLC is much better
condition even though its collection days has been increase isince2018 but as compare to its rival
companies, Premier took less time to collect money from their debtors.
Current ratio : Current ratio refers to the ratio which helps in meeting the short term
obligations which are due in the one year. Current ratio are also known as the working capital of
the company. Current ratio of the three companies are calculated Green core group plc, Hilton
Food group plc and Premier foods plc (Ding, Hellmann and De Mello, 2017).
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2020
2019
2018
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
5
10
15
20
25
30
35
40

The Green core group Plc company has the decreasing current ratio than the year 2019.
IN 2019 the current ratio is 2.01 and in the year 2020 the ratio decreased and is 0.69 it means in
the year 2020 the company has reduced the ability of generating the cash due to the economic
situation of the company. The current ratio of the Hilton company is 1.05 in the year 2020 which
decreased from the year 2019 that is 1.23, as there is minor difference the company reduce the
ability of generating the cash. The current ratio of the Premier foods plc in the year 2019 is 0.78
and in 2020 is 0.98 as the company has an ability to pay all of its debt in comparison to year
2019.
Profit margin: Profit margin helps in making the money and dividing the income by its
revenue. It helps in deciding what percentage of profit is generated so that the company can take
its decision of the better results.
Profit margin if the Green core group plc in the year 2019 is 0.75 and the year 2020 has
the profit margin ratio of 7.48 which is higher than the year 2019 it means there are high selling
price and the goods are sold more because of the COVID situation. Net profit margin ratio of the
Hilton Food group plc is 2.63 in 2019 and 2.38 in the year 2020 which is more than 2019 as the
revenues are increasing. Profit margin of the Premier foods plc in the year 2019 was -5.18 and in
2020 it has increased to 6.33 which means there are revenues are earned by the company and can
perform better by increasing profits of the company (Kim and Schmidgall, 2019).
2020 2019 2018
-6
-4
-2
0
2
4
6
8
10

Gross margin: Gross profit margin refers to the profit which is left after deducting the
cost of goods sold from the sales.
It deducts the administrative cost, selling and general cost to know about the firms net
profit margin so that the result scan be derived easily. Gross margin is always expressed in the
percentage and the value is to be calculated easily (Malone Tarca and Wee, 2016).
Gross profit margin of the Green core group plc in the year 2019 was 30.23 and in year 2020
was 33.84 which is higher than the year 2019 it means the company has the high profit and has
the proper cost control in an proper manner. Gross profit margin of the Hilton Food group plc in
the year 2019 is 12.69 and in the year 2020 is 16.17 which is increased as the company has the
high profit.
ROCE (Return on capital employee) (%): This ratio is used for determine rate of revenue an
organization generate by using their capital. As compare with Premier and Hilton revenue
generate from capital, Green Core organization in much better condition.
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
10
20
30
40
50

EBIT:This ratio is used top recognize ability of organization to generate revenue before
adjustment of tax.
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
2
4
6
8
10
12
2020 2019 2018
0
5
10
15
20
25

This graphical representation showcase that Hilton Group PC is in good position and able to
maintain their revenue before adjustment of tax as compare with its rival business entities.
Net assets turnover:This ratio is used to evaluate ability of generate profit by using
organization's business assets. Hilton is able to generate more revenue as compare with Green
Core and Premier foods plc even though rate of net assets turnover is increase for both
organizations but Hilton 's rate of efficiency is high as compare with other organizations.
Total assets per employee: On the basis of evaluate this graph it has been recognize that
Premier Food Plc able to manage their employees in better way then as compare to other
organizations.
GREENCORE GROUP PLC HILTON FOOD GROUP PLC
0
1
2
3
4
5
6
7