Financial Analysis

Fyffes PLC and Glanbia PLC



Fyffes PLC and Glanbia PLC

Introduction

The study is related to the comparison of two Irish companies that are Fyffes plc and Glanbia plc. Fyffes is an international importer and distributor of tropical produce; the primary activities of Fyffes include the production, procurement, shipping, ripening, distribution and marketing of bananas, pineapples and melons. However, Glanbia is an international nutritional solutions and cheese company headquartered in Ireland. Fyffes has operations in Ireland, Europe, the United States, Canada, Asia and Nigeria. Fyffes operates four segments that include United States; Cheese & Global Nutritionals, Dairy Ireland, Joint Ventures & Associates, and other business. These segments manufactures and sells cheese, whey protein, dairy consumer products, other nutritional solutions and a range of dairy products including the sale of feed, fertilizer and other farm inputs.

Context

This paper focuses on the financial status of Fyffes plc and Glanbia plc for last 3 years that is from 2008 to 2010. This study will describe the importance of choosing the right strategy. Internal and external analysis of Fyffes plc and Glanbia plc are made in order to maintain the status as the low cost. It includes the model of the strategy in use. The strategic choice of Fyffes plc and Glanbia plc makes the company a leader in the industry. These companies have become an example in the strategic management because of its successful implementation of the strategy. Internal and external analysis of Fyffes plc and Glanbia plc shows the set of managerial decisions and actions that determine the long run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control. Fyffes plc and Glanbia plc are among the leading companies of food sector, which offers a very reasonable price, making the company the leader in low cost.

Overview of Fyffes PLC

The financial performance of Fyffes plc shows that the major portion of the company's assets is not comprised of liabilities; which is a good indication for the company as the company's short term and the long-term debts are constant or not increasing rapidly. Moreover, the company's equity seems good or satisfactory as it is high as compare to the liabilities. In addition to this, the total assets per share and net assets per share reflect that the Fyffes plc's assets structure is in good shape which shows that the company can meet its financial obligations that is liabilities is some sort of financial loss occur. In addition to this, past studies states that the financial analysis are to determine whether there are liquidity problems, the study of profitability determines the evolution of the company and return on invested capital, management and analysis of related variables involved in the short term financing, obtaining rotations and time of collection and payment means.

Key Financials

(In EUR as of 12/ 31/ 2010)

Income Statement

Revenue

623 m

Net Income

8 m

EPS - Net Income - Diluted

0.02

Revenue per Share

1.81

Balance Sheet

Total Assets

275 m

Total Liabilities

127 m

Shareholders' Equity

148 m

Total Assets per Share

0.84

Net Assets per ...