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    Financial Statement Analysis (Confectionary Company)

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    Ashutosh Tukaram Tawade
    This document provides a financial statement analysis of Nestle India and Mondelez India (formerly Cadbury India) for the fiscal year 2015-2016. It analyzes various financial ratios such as gross profit ratio, operating profit ratio, current ratio, liquid ratio, net profit ratio, return on capital, earnings per share, inventory turnover ratio, and proprietary ratio. The analysis finds that Nestle India performed better in most ratios compared to Cadbury India. The document also discusses Nestle and Cadbury's future plans which include new product launches and investments in key areas like research and development.

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    Financial Statement Analysis (Confectionary Company)

    Uploaded by

    Ashutosh Tukaram Tawade
    291 views9 pages
    This document provides a financial statement analysis of Nestle India and Mondelez India (formerly Cadbury India) for the fiscal year 2015-2016. It analyzes various financial ratios such as gross profit ratio, operating profit ratio, current ratio, liquid ratio, net profit ratio, return on capital, earnings per share, inventory turnover ratio, and proprietary ratio. The analysis finds that Nestle India performed better in most ratios compared to Cadbury India. The document also discusses Nestle and Cadbury's future plans which include new product launches and investments in key areas like research and development.

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    Finanancial analysis

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    This document provides a financial statement analysis of Nestle India and Mondelez India (formerly Cadbury India) for the fiscal year 2015-2016. It analyzes various financial ratios such as gross profit ratio, operating profit ratio, current ratio, liquid ratio, net profit ratio, return on capital, earnings per share, inventory turnover ratio, and proprietary ratio. The analysis finds that Nestle India performed better in most ratios compared to Cadbury India. The document also discusses Nestle and Cadbury's future plans which include new product launches and investments in key areas like research and development.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    291 views9 pages

    Financial Statement Analysis (Confectionary Company)

    Uploaded by

    Ashutosh Tukaram Tawade
    This document provides a financial statement analysis of Nestle India and Mondelez India (formerly Cadbury India) for the fiscal year 2015-2016. It analyzes various financial ratios such as gross profit ratio, operating profit ratio, current ratio, liquid ratio, net profit ratio, return on capital, earnings per share, inventory turnover ratio, and proprietary ratio. The analysis finds that Nestle India performed better in most ratios compared to Cadbury India. The document also discusses Nestle and Cadbury's future plans which include new product launches and investments in key areas like research and development.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    The document discusses financial statement analysis and key ratios for Nestle and Cadbury confectionary companies in India for the fiscal year 2015-2016. It analyzes gross profit ratio, operating profit ratio, current ratio, liquid ratio, return on capital, earnings per share, inventory turnover ratio, and proprietary ratio.

    Some of the key financial ratios analyzed include gross profit ratio, operating profit ratio, current ratio, liquid ratio, return on capital, earnings per share, inventory turnover ratio, and proprietary ratio. The analysis finds that Nestle has higher ratios for operating profit, liquid ratio, return on capital, earnings per share and inventory turnover compared to Cadbury.

    After issues with Maggi noodles, Nestle India saw around a 12% increase in net sales as Maggi noodles were welcomed back by shoppers. The company also opened doors to export Maggi to eight markets in the Middle East and Ghana. Nestle launched over 30 new products and variants in 2016 including new Maggi noodles flavors and fortified Cerelac cereal.

    Financial Statement

    Analysis
    (Confectionary Company)
    Presented By
    Ashutosh Tawade
    Bhushan Bhargav
    Rohit Umrao
    Confectionary Companies Introduction
    ❖ Nestle India - Subsidy of
    ❖ Nestle S.A of Switzerland
    ❖ Popular brands - Nescafe,Maggi,Milky bar,
    ❖ Milo,Kit Kat,Bar one,Milkmaid
    ❖ Providing consumers products of Global Standards

    ❖ Mondelez India (Cadbury India) is a


    ❖ fully owned subsidiary of Kraft Foods Inc.
    ❖ Cadbury enjoys a value market share of over 70%
    ❖ the highest Cadbury brand share in the world!
    Ratio Analysis (FY 2015-2016)

    ➢ With approx. 8% higher Gross profit ratio,

    cadbury has achieved this mark through

    increase in sales mix.

    ➢ Comparing the Operating profit ratio,

    Nestle with 18.55% has almost 10 % more

    ability to cover total operating expense.


    Ratio Analysis (FY 2015-2016)

    ➢ Comparing current ratio,Cadbury is

    struggling to maintain Current asset

    to current liabilities ideal ratio of 2:1.

    ➢ Nestle India with Liquid ratio of 1.43

    has better position to meet current

    Obligations in time.
    Ratio Analysis (FY 2015-2016)

    ➢ With the Ratio of 30.74%,

    Nestle is efficiently handling

    shareholder’s investment as a part of net profit.

    ➢ Considering total investment made

    in business,Nestle has provided 14.95 %

    return on capital when compared with net profit.


    Ratio Analysis (FY 2015-2016)
    ➢ With EPS of 92.65,Nestle is at

    strong financial position over

    cadbury whose EPS IS AT 11.61.

    ➢ With close to 1.7 times Inventory turnover

    ratio,Nestle shows better stock utilization

    and efficient investment in stock in trade

    than Cadbury.
    Ratio Analysis (FY 2015-2016)
    ➢ With ratio of 2.07,Cadbury has efficiently

    utilized its capital employed over Nestle.

    ➢ Comparing the Proprietary Ratio,

    Nestle has approx.8 % higher share

    of owner in total asset of company

    against that of Cadbury.


    Analysis and Future plan - Nestle India
    ➢ Financial statements of both the companies are based on accounting
    concepts of Entity,Accounting period,Going concern,Cost and Money
    Measurement.
    ➢ Net Sale of Nestle India has increased by approx.12% after the issue with
    Maggi Noodles.
    ➢ MAGGI Noodles were welcomed back by shoppers while confectionery
    opened doors to export to eight markets in the Middle East and Ghana.
    ➢ The year 2016 witnessed a spate of innovations and renovations with the
    launch of more than 30 new products and variants.
    ➢ MAGGI HOT HEADS’ and ‘MAGGI No Onion No Garlic Masala’ variants of
    MAGGI Noodles
    ➢ The Company renovated the entire CERELAC range fortifying it with Iron.
    ➢ Expanding Coffee and Beverages Portfolio.
    Analysis and Future plan - Mondelez India (Cadbury)
    ➢ India business of Mondelez,grew the slowest in more than a decade last fiscal
    when demand for most discretionary products took a hit due to sluggishness
    in the economy.
    ➢ Along with number of changes in Management,Mondelez India aiming to
    leading share positions in the near term through investing in selling,marketing
    and people.
    ➢ Mondelēz International announced an investment of approximately US$15
    million to build a global Research, Development & Quality (RDQ) hub in
    Thane, Maharashtra.
    ➢ mondelēz international inaugurates its largest manufacturing plant in asia
    pacific in andhra pradesh.
    ➢ mondelez india gives oreo a new twist - introduces golden oreo,Launches
    cadbury bournvita biscuits tiffin pack,‘cadbury fuse,cadbury bournvita biscuits

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