Financial Analysis Essay

It has made numerous corporate acquisitions, including Lipton (1971), Brooke Bond (1984), Cheeseburgers-Ponds (1987), Best Foods and Ben & Jersey’s (2000), and Alberta-Culver (2010). Milliner divested its specialty Heimlich businesses to Icily in 1997. According to the Milliner Global website, the headquarters are located at Milliner House, in London, though other offices are located in Rotterdam, Netherlands. Introduction Milliner is an Anglo-Dutch multinational consumer goods company co- headquartered in London, England and Rotterdam, The Netherlands.

Its products include food, beverages, cleaning agents and personal care products. It is the world’s third-largest consumer goods company measured by 2012 revenue, after Procter & Gamble and Nestle. One of the oldest multinational companies, its products are available in around 190 countries. Milliner owns over 400 brands, but focuses on 14 brands with sales of over 1 billion euros – Axe/Lynx, Dove, Mom, Bezel/Flora, Heartbreak ice creams, Helmsman’s, Nor, Lipton, Lug, Magnum, Ram, Reason, Sunlit and Surf.

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Milliner is organized into four main divisions – Foods, Refreshment (beverages and ice cream), Home Care, and Personal Care. It has research and development facilities in the united Kingdom, the Netherlands, China, India and the Ignited States. Business Vision At the heart of vision is our philosophy of working to create a better future every day for our consumers and the communities in which we operate. Milliner is committed to supporting sustainability and providing our consumers around the world with the products they need to look good, feel good and get more out of life.

And by leveraging our global reach and inspiring people to take small, everyday actions, we believe we can help make a big difference to the world. By combining our multinational expertise with our deep roots in diverse local cultures, we’re continuing to provide a range Of products to suit a wealth of consumers. We’re also strengthening our strong relationships in the emerging markets we believe will be significant for our future growth. Achieving significant growth objectives while decoupling growth from environmental impact is a bold but challenging vision,” says Milliner CEO Paul Pullman.

Mission Statement Milliner’s mission is to add vitality to life. We meet every day needs for nutrition with brands that help people feel good, look good and get more out of life Brands of unlived Milliner makes and sells products under more than 400 brand names worldwide. Two billion people use them on any given day. Here is a selection of their top brands, available in many countries. PROCTER & GAMBLE Introduction Procter & Gamble co. Is also an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, united States, founded by William Procter and James Gamble, both from the United Kingdom.

Its products include pet foods, cleaning agents, and personal care products. Prior to the sale of Principles to the Kellogg Company, its product line included foods and beverages. In 2014, P&G recorded $83. 1 billion in sales. On 1 August 2014, P&G announced it was streamlining the company, dropping around 1 00 brands and concentrating on the remaining 80 brands, which produced 95 percent of the company’s profits. Future would be “a much simpler, much less complex company of leading brands that’s easier to manage and operate. ” P&G remains a highly selective employer as less than 1% of all applicants are hired annually.

In accordance with our aim of providing consumers with premium quality products, our manufacturing plants strive to achieve high-quality manufacturing standards. We are also committed to providing responsible care to all our employees, our community and the environment. Business Vision Be, and be recognized as, the best consumer products and services company in the world Mission Statement We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come.

Brands Unlived Financial Statements Ratios Analysis (2012 v/s 201 3) Information to Management 1. Operational Analysis Gross Margin Gross Margin represents the margin of “gross profit” from operations. Remember that gross margin represent the relationship of prices, volume and cost. A change in gross margin can be result from a combination of changes in: ; The selling price of the product ; The level of manufacturing costs for the product Any variation in the product mix of the business The calculated gross margin in 201 2 was 49. 3% and in 201 3 is 48. 9%.

The company faced (0. 4%) decline in gross margin ratio in 201 3 as compared to 2012. It is due to the minor increase in the level of manufacturing cost (CSS). Profit Margin A company’s stock price, in large part, is driven by the company’s ability to generate earnings. Therefore, it is useful for investors to analyses the profitability of a company before investing in it. One way to do this is by calculating and tracking various profit margins, which reflect how efficiently a company uses its resources. Profit Margin=Net Income/Net Sales The calculated profit margin in 2012 was 8. % and in 2013 is 9. 7%. The company increased their profit margin by (1 . 2%) in 201 3 as compared to 2012. Actually it is due to the decrease in total operating expenses which includes general administrative expenses, CSS and some other expenses as well as compared to 2012 year. Also the minor decrease in interest expenses. 2. Resource Management Asset turnover The total asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales. This ratio considers all assets, current and fixed.

Those assets include fixed assets, like plant and equipment, as well as inventory, accounts receivable, as well as any other current assets. Asset Turnover= Total Sales/total Assets The calculated asset turnover in 2012 was 1. 11 times and in 2013 is 1. 09 times. The company faced (0. 02 times) decline in their asset turnover in 2013 as compared to 2012. This is due to the decline in sales is more as compared to sales. Working capital Management Operating cycle It’s the time between purchasing the inventory and collecting the cash from selling the inventory.

The calculated operating cycle in 2012 was 87. 62 days, ND in 2013 it is 85. 90 days. It is because their inventory period in 2013 is less as compared to 2012. Inventory Turnover A ratio showing how many times a company’s inventory is sold and replaced over a period. The calculated inventory turnover in 2012 was 6. 79 times and in 2013 is 6. 99 times. The inventory turnover increased by 0. 2 times in 2013. It is because of avgas. Inventory decrease in 2013. Receivables Period It is the time required to collect on-credit sales. The calculated receivable period in 201 2 was 31. 8 days and in 2013 is 27. 72 days. It is decreased by (3. 36 days) in 201 3 as compared to 2012. Because 2013 receivables turnover increased. Cash Cycle Flow of cash that begins with payment for raw materials and ends with receipt of cash on goods sold. Shorter the number of days in this cycle, more the amount of available cash, and lesser the need to borrow. Also called cash conversion cycle or cash flow cycle. The calculated cash cycle in 2012 was 2. 47 days and in 2013 is -7. 89 days. It is due to the increase in payable. Payable are increased because they started holding more cash.

Payable period It’s the time between purchase of inventory and payment of inventory. The calculated payable period in 2012 was 82. 3 days and in 201 3 is 87. 86 days. Payable period is increased by 5. 53 days in 2013 as compared to 2012. 3. Profitability Return on Asset The return on assets ratio (ROAR) for any individual company shows how effectively it has turned its investments into profits. The model uses the simple formula of net income divided by total assets. A company that has a higher ROAR has made comparably more profit for the investment either the owners or individual investors have made.