Strategic Financial Analysis of Food Corporations: A Detailed Report

This report presents a comprehensive financial analysis of three major food corporations: Greencore Group Plc, Hilton Food Group Plc, and Premier Foods Plc. Section A delves into the strategic plans, key targets, and observable metrics of each company, focusing on financial growth, sustainability, and performance. The analysis includes detailed evaluations of financial and non-financial ratios, such as ROE, ROCE, net profit margin, gross margin, and gearing ratios, to compare the performance of each company over several years. Section B explores the main forms of internal and external long-term finance available to listed companies and examines how long-term finance affects the interests of existing stakeholders. The report uses graphs and tables to illustrate performance trends and provides insightful interpretations of the financial data, highlighting strengths, weaknesses, and comparative advantages of each corporation. The report concludes with an overview of the financial health and strategic positioning of each company within the competitive food market.

Accounting
and
Finance for Managers

Contents
INTRODUCTION...........................................................................................................................3
SECTION A.....................................................................................................................................3
1a. Strategic plans about each business, including key strategic targets and observable metrics
of progress with regard to financial growths, financial sustainability as well as financial
performance:...........................................................................................................................3
1b.Perfromance analysis:........................................................................................................4
1 c.........................................................................................................................................14
SECTION B...................................................................................................................................14
2a. Main forms of internal and external long-term finance available to listed companies:. 14
2b. How long-term finance affects the interests of existing stakeholders............................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
This report covers thorough analysis and evaluation of three corporations: the Green-
Core group corporation, Hilton Food Group and Premier Food corporation, all of these adhere
to same market/sector and are top rivals. The very first section contains the ratio review and
strategical plans, targets and objectives of these businesses whereas the second part addresses
internal as well as external sources/means of longer-term finances.
SECTION A
1a. Strategic plans about each business, including key strategic targets and observable metrics of
progress with regard to financial growths, financial sustainability as well as financial
performance:
Greencore Group Plc: The corporation's ambition to accelerate demand in a growing food
industry is focused on two main aspects: expanding their product proposal and encouraging
customers to purchase more. The organisation 's plan is to further improve our importance to our
consumers by driving profits through a common value chain, growing value via their portfolio as
well as doing better for customers. Accomplishing a strategic target of the group relies on four
main capabilities: Quality Food, Individuals at Core, Greencore Integrity and Sustainable
Enterprise. A large and competent enterprise underpinned by common commitment to doing
businesses – called Greencore Way – is required to implement this plan.
Hilton Food Group Plc: Business has been a vibrant corporation with powerful standards for a
longer period. The company's legitimacy for performance is what attracts its customers. And
their trust in longer-term partnerships has driven their multinational growth. The objective
of corporation is to ensure that the business associates of the business surpass their competitors.
The mission of the Company as a business is Total Teamwork. Business's commitment, effort
and determination to do all it could to support its collaborators prosper. One mission, one
purpose, one mutual goal. Organizational staff are in frontline of all the organisation does. The
cultural identity of enterprise has always been distinguishable and valuable. The values of the
company explain the ways that they conceive of themselves as an organisation and the way in
which they act as persons. Market workers work as partners-supporting allies, focused on shared
values and defined strategies. Such practices are at the centre of our culture and at the root of
their expansion (Fernandez, 2019).

Premier Foods Plc: The company goal ensures them of what they have to do here the wonderful
food that their business customers/clients love, food-stuff that is tasty, easy to prepare and
available in diverse formats. That is why customers find their brands in around 94percent of the
total British household members. Company supports the iconic brands and wonderful products,
and their goal is to illustrate how the organisation of foods is at the centre of how effectively a
partner does every single. Company is committed to creating a truly Beautiful Site of Operation.
The shared values of the organisation provide employees with a common framework for
decision-makings and help to influence them through the direction they do tasks, as well as
pressure each other to integrate them into daily. Over the last three years, major
growth/expansion has been made in implementing the values and goals of the Company across
the business, increasing investment in cooperation and contact with staff, and strengthening
training in areas such as teamwork.
1b.Perfromance analysis:
Financial and non-financial ratios:

ROE using Net income (%)-
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
-10
-5
0
5
10
15
20
25
30
35
40
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses- As per above graph, it could be noted that the returns on earning in the context of
Greencore was increased in 2019 and 2020 terms. This indicates that there is a noticeable
increase in return-generating effectiveness of above business. In other side, the efficiency of
Hilton Company in year-2019 and year-2020 was consistent, which indicates that they have
continued to generate decent yields on equities. In the context of Premier Food Company, it may
be assessed that the effectiveness of Premier Food Organization would be too low relative to all
of other companies.
1. ROCE (%)
3/1/2018
5/1/2018
7/1/2018
9/1/2018
11/1/2018
1/1/2019
3/1/2019
5/1/2019
7/1/2019
9/1/2019
11/1/2019
1/1/2020
3/1/2020
0
5
10
15
20
25
2.58
4.8
19.12
12.43 11.98
9.02
2.94
1.16
3.37
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC

Analysis- As per above tables and Graph, it's been observed that Green Core company provides a
better yield on capital employed opposed to other companies, that is around 19.12 percent. With
perhaps exception of that, one can see that ratio of Hilton Company reduced by around 2.96
percent in period-2020. Referred to the above-mentioned ratio, the performance of Premier
Company is inefficient compared to all companies, and that this is due to expanded capital
spending (Brooks and Oikonomou, 2018).
2. Net profit margin:
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
-6
-4
-2
0
2
4
6
8
10
0.53 0.75
7.48
2.52 2.63 2.382.55
-5.18
6.33
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses: As far as Green-Core Company is concerned, it could be established that their efficacy
has been increased by a large amount in year-2020 compared to year-2019. In contrast, Premier
Food had an unfavourable net profits of about -5.18 per cent due to higher costs. Including the
continuous performance of this Hilton Food Company across these three years, it will be a good
situation.
3. Gross margin-

3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
5
10
15
20
25
30
35
40
45
50
31.12 30.23
33.84
11.93 12.69
16.17
40.42
44.12 40.94
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses: Green Core company and Premier Food company have same profitability for all three
years. As well as Premier Food Company, it is better off than most corporations in a similar way.
On other side, the outcomes of the Hilton's food company are poor compared to all companies.
This is attributed to higher sales prices and declining profits (McLaney and Atrill, 2016).
4. EBIT-
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
2
4
6
8
10
12
1.84 2.04
6.73
2.58 2.8 3.08
8.48
0.55
11.25
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses/interpretation: Hilton Food Company is capable/efficient of sustaining its earnings until
continuous interests sum and taxes-sums on a yearly basis which shows its progress. On other
hand, Green Core Company and the Premier Food Organization experienced downward trend in
period-2019 and also efficiency gains in-2020.

5. Collection period:
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
5
10
15
20
25
30
35
40
30
34
26
30 31
37
24
29 27
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses- In consideration of debtors collection cycle, Premier Company can be asserted that it
is efficacious in collecting its receivable from the other two corporations within shorter
timeframe/term. While Hilton Food Corporation is seeking quite longer to repay its debt holders.
Particularly Green Core Business, managed to minimise recovery term of trade debts in reduced
period during 2020 compared to 2019 (Boyer-Davis, 2019).
6. Credit period:
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
10
20
30
40
50
60
70
47 50 54
59
65 65
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC

Analyses- Green Core Company as well as Hilton Food company have similar repay cycles, both
of which clear their trade-creditor liabilities within same timeline. While Hilton Food company
takes extra period to satisfy its short term obligations.
7. Current ratio:
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
0.5
1
1.5
2
2.5
0.75
2.01
0.69
1.2 1.23
1.05
0.78 0.78
0.98 GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses: The recommended current ratio commonly assumed to be 2 it could be seen from the
above-mentioned diagram that Green Core plc only capable of retaining such ratio at
this standard in period-2019. While rest of firms were unable to do this because of higher current
commitments (Wells, 2020).
9. Net assets turnover ratio
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
1
2
3
4
5
6
7
1.49 1.81 2.06
6.53
5.56
3.58
0.42 0.42 0.32
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC