FINANCIAL COMPARISON

Financial Analysis of Premier Foods in comparison to Tate & Lyle



Financial Analysis of Premier Foods in comparison to Tate & Lyle

Introduction

The study is related to the financial performance of Premier Foods. Premier Foods is engaged in food manufacturing, processing and distribution. Premier Foods' operates in three divisions that are Grocery, Hovis and Chilled. Grocery division comprises the shelf stable or ambient grocery products. Hovis segment comprises wrapped bread, morning goods and bulk and bagged flour. The chilled segment comprises chilled and frozen meat-free products and its retailer branded chilled ready meal and cake businesses. Premier Foods' broad range of customers including the major multiple retailers, wholesalers, foodservice providers and other food manufacturers. Company's brands include Hovis, Batchelors, Mr. Kipling, Quorn, Bisto, Ambrosia, Branston, Sharwood's, Hartley's, Loyd Grossman and Oxo.

However, the major competitor of the Premier Foods in the UK is Tate & Lyle. The Tate & Lyle and its subsidiaries are engaged in developing, manufacturing and marketing of food and industrial ingredients made from renewable resources. Company provides ingredients and solutions to the following markets: food and beverage; industrial; animal feed; pharmaceutical; and personal care. Company's ingredients are produced from crops, predominantly corn. Company operates through two business divisions: Bulk Ingredients and Specialty Food Ingredients. Bulk Ingredients division produces ingredients which are relatively undifferentiated. Specialty Food Ingredients produces distinctive ingredients.

Context

This paper focuses on the financial status of Premier Foods plc in comparison of Tate & Lyle plc for 5 years that is from 2007 to 2011. This study will describe the importance of choosing the right strategy. Internal and external analysis of Premier Foods is made in order to maintain the status in the market. It includes the model of the strategy in use. The strategic choice of Premier Foods makes the company a leader in the industry. The company has become an example in the strategic management because of its successful implementation of the strategy. Internal and external analysis of Premier Foods 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.

Overview of Premier Foods plc

The financial performance of Premier Foods plc shows that the major portion of the company's assets is comprised of liabilities, which is not a good indication for the company as the company's short term and the long term debts are increasing. However, the company's equity seems good or satisfactory but it should be high as compare to the liabilities. In addition to this, the total assets per share and net assets per share reflect that the Premier Foods 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 ...