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FFiinnaanncciiaall SSttaatt
Muhammad Waseem (1204136)
RReeppoorrtt OOnn::
tteemmeenntt AAnnaallyyssiiss ((FFrroomm FFYY22001100--2200
Engro Foods Limited
AA nnaa ll yyss ii ss FFOO RR::
SSiirr SShhaaffii AAzzaadd
Federal Urdu University,
Department of Commerce
AAnnaa ll yyss tt ss ::
Abdul Latif (1204101)
Muhammad Waseem (1204136)
Syed Tufail Haider (1204177)
Yusra Ali (1204216)
DD aa ttee dd ::
October 27, 2015
Page | 0
001144))
Submitted By
Abdul Latif
Muhammad Waseem
Syed Tufail Haider
Yusra Ali
((AABBDDUULL HHAAQQ CCAAMMPPUUSS))
Submitted To: Sir Shafi Azad
Class: BS (Commerce) 8
Page | 1
Roll No
1204101
1204136
1204177
1204216
Submitted To: Sir Shafi Azad
Class: BS (Commerce) 8th Semester
Page | 2
ACKNOWLEDGEMENT
“Countless Thanks to He Who Is Lord of Lords”
At first instant, humbly we bow our head with all the feeling of our heart
Almighty Allah, the beneficent, the omniscient who bestowed us with all the mental abilities to
work out this project.
The report being submitted today is a resu
hands behind who have guided us on our way. Writing this report appeared to be a great
experience to us. It added a lot to our knowledge. This report is one of our memorable
experiences in student life. Though words are inadequate in offering thanks to our teacher but
we owe our profound gratitude to
assigning this project to us and for his
completing the project in time. Whatever we have learnt from h
indelible impression on our minds and it is our conviction that this learning experience will
always be a source of help in our practical life and professional career
Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents,
for cooperation, help, kindness and blessings, our family and friends for their help and wishes
for the successful completion of the work.
CKNOWLEDGEMENT
“Countless Thanks to He Who Is Lord of Lords”
At first instant, humbly we bow our head with all the feeling of our heart and soul before the
Almighty Allah, the beneficent, the omniscient who bestowed us with all the mental abilities to
The report being submitted today is a result of collective effort. There are innumerous helping
hands behind who have guided us on our way. Writing this report appeared to be a great
experience to us. It added a lot to our knowledge. This report is one of our memorable
Though words are inadequate in offering thanks to our teacher but
we owe our profound gratitude to “Sir Shafi Azad” for stimulating our creative abilities by
g this project to us and for his able guidance and useful suggestions, which helped us in
completing the project in time. Whatever we have learnt from him and this
indelible impression on our minds and it is our conviction that this learning experience will
always be a source of help in our practical life and professional career.
Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents,
for cooperation, help, kindness and blessings, our family and friends for their help and wishes
for the successful completion of the work.
Page | 3
“Countless Thanks to He Who Is Lord of Lords”
and soul before the
Almighty Allah, the beneficent, the omniscient who bestowed us with all the mental abilities to
lt of collective effort. There are innumerous helping
hands behind who have guided us on our way. Writing this report appeared to be a great
experience to us. It added a lot to our knowledge. This report is one of our memorable
Though words are inadequate in offering thanks to our teacher but
for stimulating our creative abilities by
able guidance and useful suggestions, which helped us in
im and this report has put
indelible impression on our minds and it is our conviction that this learning experience will
Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents,
for cooperation, help, kindness and blessings, our family and friends for their help and wishes
TTAABBLL
S.NO
1
2 Introduction & History
3 Vision Mission & Core Value
4 Facts And Figure, Strategic Objective and
5 Income Statement And Balance Sheet
6
7
8
9
10
11
LLEE OOFF CCOONNTTEENNTTSS
Topics
An overview
Introduction & History
Vision Mission & Core Value
Facts And Figure, Strategic Objective and
Brands
Income Statement And Balance Sheet
Ratio Analysis
Industry Average
Trend Analysis
Vertical Analysis
Horizontal Analysis
Overall Analysis
Page | 4
Page No
5
6
7
Facts And Figure, Strategic Objective and 8-9
10-12
13-25
26
27-31
32-33
34-36
37-39
AA
This is the project about financial statement
company which we chosen to be analyzed
in food business for many years. The compan
range of healthy food products.
cream, ice cream, juices, flavored milk and many others.
strategies to come up with in a competitive market. It has targeted all of its customers no
matter they are of what age. How it standing in the market with such price? How it satisfies its
shareholder’s? Why don’t investor’s invest in other companies? The answer to all above
question is clear after going through its financial reports. The profit that the company earns
and the balance it has kept between its assets and liabilities is also easil
going through its financial statements. The company is running its business so
FOODS is the 1st company which is using Bactofuge technology. The company has not been
in this business for as long as NESTLÉ is, but the way
come up with innovative features in its products
liabilities on time and to keep its assets managed. ENGRO FOODS not only provide incentives
to its stockholder’s but also to its e
that they can work in a healthy environment and don’t get tired of their hectic routine. That is
why it has many loyal employees to work with.
AANNOOVVEERRVVIIEEWW
This is the project about financial statements analysis of a company. In this regard the
chosen to be analyzed is ENGRO FOODS LIMITED.The company is
in food business for many years. The companyis well reputed in the market and deal in a wide
food products.Its product line contains products such as milk, tea whitener,
flavored milk and many others. The company has strong marketing
strategies to come up with in a competitive market. It has targeted all of its customers no
matter they are of what age. How it standing in the market with such price? How it satisfies its
areholder’s? Why don’t investor’s invest in other companies? The answer to all above
question is clear after going through its financial reports. The profit that the company earns
and the balance it has kept between its assets and liabilities is also easily understandable after
going through its financial statements. The company is running its business so
FOODS is the 1st company which is using Bactofuge technology. The company has not been
in this business for as long as NESTLÉ is, but the way it has grown up is appreciable. It has
come up with innovative features in its products. The company has capability to pay it
liabilities on time and to keep its assets managed. ENGRO FOODS not only provide incentives
to its stockholder’s but also to its employees. It offers its employees much outdoor training so
that they can work in a healthy environment and don’t get tired of their hectic routine. That is
why it has many loyal employees to work with.
Page | 5
s analysis of a company. In this regard the
The company is dealing
well reputed in the market and deal in a wide
s product line contains products such as milk, tea whitener,
The company has strong marketing
strategies to come up with in a competitive market. It has targeted all of its customers no
matter they are of what age. How it standing in the market with such price? How it satisfies its
areholder’s? Why don’t investor’s invest in other companies? The answer to all above
question is clear after going through its financial reports. The profit that the company earns
y understandable after
going through its financial statements. The company is running its business so well. ENGRO
FOODS is the 1st company which is using Bactofuge technology. The company has not been
it has grown up is appreciable. It has
The company has capability to pay it
liabilities on time and to keep its assets managed. ENGRO FOODS not only provide incentives
mployees. It offers its employees much outdoor training so
that they can work in a healthy environment and don’t get tired of their hectic routine. That is
eenngg
IInnttrroodduucctt iioonn::
Engro Foods Limited was officially launched as a fully owned subsidiary of Engro
2004.Using dairy as a stepping stone to enter into the food business, the Company has
establishedstate-of-the-art processing units in Sukkur and Sahiwal, along with an ice cream
productionfacility in Sahiwal. Top quality brands like
Olpers Cream have beensuccessfully launched under the helm of Company’s dairy products. To
support these brandsand their highest standards of quality, Engro Foods has inv
in milk processing andmilk collection infrastructure. Engro Foods
dairy sector. In thispursuit, grain and fruit markets have been analyzed in great detail.
Engrohas launched its newbrand in fruit juices called as
“EElleevvaattee CCoonnssuummeerrss’’ DDeelliigghhtt WW
portion of its revenuefrom foreign operations.
HHiissttoorryy::
Engro Foods Pvt. Limited (EFL) has beenestablished in
attheEngro Group. The plant located at Sukkur on
capability of more than 300,000
200,000liters perday. The plant has been establi
direct employment to 750people.Engro Foods has entered the Food businessthrough milk
processing and sale with the company’s vision
country fundamentals and own strength. I
itscorporatesocial responsibility initiatives and work closely with rural communities to
promoteintegrated farming and livestock development. This effort is expected to play
role inpoverty alleviation and impr
Engro Foods will work with the Pakistan Poverty Alleviation Fund and its three
partnerorganizations to help implement sustainable business models that increase
profitability and develop a positive social and business climate for growth and expansion
oflivestock and other forms of value added agriculture.
ggrroofoods
officially launched as a fully owned subsidiary of Engro
.Using dairy as a stepping stone to enter into the food business, the Company has
art processing units in Sukkur and Sahiwal, along with an ice cream
onfacility in Sahiwal. Top quality brands like Olpers, Olpers Lite, Tarang
have beensuccessfully launched under the helm of Company’s dairy products. To
support these brandsand their highest standards of quality, Engro Foods has inv
in milk processing andmilk collection infrastructure. Engro Foods has also venture beyond the
dairy sector. In thispursuit, grain and fruit markets have been analyzed in great detail.
Engrohas launched its newbrand in fruit juices called as Y-frooter. EngroFoods’ purpose
WWoorrllddwwiiddee” and the Company aims to generate a significant
portion of its revenuefrom foreign operations.
Limited (EFL) has beenestablished in 2005 as part of a diversification process
attheEngro Group. The plant located at Sukkur on 23acre land, has the raw milk reception
300,000liters per day and UHT milk capacity of
liters perday. The plant has been established at a cost of Rs. 1billion which provides
people.Engro Foods has entered the Food businessthrough milk
sale with the company’s vision to pursue growth opportunitiesbased on
country fundamentals and own strength. It also positions the company to leverage
itscorporatesocial responsibility initiatives and work closely with rural communities to
promoteintegrated farming and livestock development. This effort is expected to play
role inpoverty alleviation and improving livelihoods of the poor in the milk collection areas.
Engro Foods will work with the Pakistan Poverty Alleviation Fund and its three
partnerorganizations to help implement sustainable business models that increase
and develop a positive social and business climate for growth and expansion
oflivestock and other forms of value added agriculture.
Page | 6
officially launched as a fully owned subsidiary of EngroCorporationin
.Using dairy as a stepping stone to enter into the food business, the Company has
art processing units in Sukkur and Sahiwal, along with an ice cream
Tarang, Omore and
have beensuccessfully launched under the helm of Company’s dairy products. To
support these brandsand their highest standards of quality, Engro Foods has invested heavily
venture beyond the
dairy sector. In thispursuit, grain and fruit markets have been analyzed in great detail.
Foods’ purposeis to
” and the Company aims to generate a significant
as part of a diversification process
, has the raw milk reception
liters per day and UHT milk capacity of more than
billion which provides
people.Engro Foods has entered the Food businessthrough milk
to pursue growth opportunitiesbased on
t also positions the company to leverage
itscorporatesocial responsibility initiatives and work closely with rural communities to
promoteintegrated farming and livestock development. This effort is expected to play vital
oving livelihoods of the poor in the milk collection areas.
Engro Foods will work with the Pakistan Poverty Alleviation Fund and its three
partnerorganizations to help implement sustainable business models that increase farmer’s
and develop a positive social and business climate for growth and expansion
VViiss iioonn::
Engro Foods will continue to make investments aimed at impacting lives and delighting
consumers each
MMiissssiioonn::
To create wealth by building new businesses
Petrochemicals, InformationTechnology, Infrastructure and other Agricultural sectors.
CCoorree VVaalluueess::
Ethics and integrity
Safety, Health and Environment
Innovation& Risk Taking
Our People
Community & Society
Engro Foods will continue to make investments aimed at impacting lives and delighting
consumers each day, every day, in a multitude ways.
To create wealth by building new businesses based on company and country strengths in
Petrochemicals, InformationTechnology, Infrastructure and other Agricultural sectors.
Safety, Health and Environment
Page | 7
Engro Foods will continue to make investments aimed at impacting lives and delighting
based on company and country strengths in
Petrochemicals, InformationTechnology, Infrastructure and other Agricultural sectors.
FFaaccttss &&FFiigguurreess::
12 Million Consumers nationwide use Engro’s products each day.
More than 1600 milk collection points spread throughout the country.
Ranked2nd in ice-cream business.
Holds more than 50% market share in UHT milk business.
Providing livelihood to 350,000
2 state of the art processing plant and a production farm.
Growing Market Share covers
FT/IFC Transformational Business Award
The first Pakistani company to produce 1 billion te
Engro Foods 2012 Annual Report secured
Award in its category.
SSttrraatteeggiicc OObbjjeecctt iivv
DIVERSIFY: Moving beyond the traditional dairy portfolio and explore new categories to
delight consumers.
DECIPHER : bringing clarity in approach within our dairy portfolio to encompass a
wider consumer segment.
DISTANCE: The brand portfolio to allow further expansion
DEVELOP: Extending physical reach to other geographies for exploring the untapped
possibilities
nationwide use Engro’s products each day.
milk collection points spread throughout the country.
cream business.
market share in UHT milk business.
350,000 farmers across Pakistan.
state of the art processing plant and a production farm.
Growing Market Share covers more than 310 cities in Pakistan.
FT/IFC Transformational Business Award 2014 for achievement in inclusive Business.
he first Pakistani company to produce 1 billion tetra packs in a single year.
Annual Report secured 2nd position for the Best Corporate Report
vveess ((44DDss)) ::
oving beyond the traditional dairy portfolio and explore new categories to
: bringing clarity in approach within our dairy portfolio to encompass a
he brand portfolio to allow further expansion.
xtending physical reach to other geographies for exploring the untapped
Page | 8
in inclusive Business.
tra packs in a single year.
d position for the Best Corporate Report
oving beyond the traditional dairy portfolio and explore new categories to
: bringing clarity in approach within our dairy portfolio to encompass a
xtending physical reach to other geographies for exploring the untapped
BBrraanndd PPoorrtt ffooll iioo::
Enhance the culinary experience
with Olper’s Cream- A rich
celebration of life at its creamy
best.
Get nutrition and the best value for money
with omungdobala
Sheer indulgence in every sip comes
only with the rich creamy thickness of
Olper’s. Give your day
with Olper’s!
Get nutrition and the best value for money
with omungdobala.
Page | 9
Sheer indulgence in every sip comes
only with the rich creamy thickness of
Olper’s. Give your day a fresh start
IINNCCOO
(Rs. In Thousands) 2014
Sales 43,027,377
Cost of sales (34,926,132)
Gross profit 8,101,245
Distribution and marketing expenses (4,692,502)
Administrative expenses (1,282,240)
Other operating expenses (103,770)
Other operating income 304,854
Operating profit 2,327,587
Other expenses (596,328)
Finance costs (1,236,904)
Profit before taxation 494,355
Taxation 394,476
Profit for the year 888,831
OOMMEE SSTTAATTEEMMEENNTT
2014 2013 2012 2011
43,027,377
37,890,688
40,168,919
29,859,226
(34,926,132)
(29,747,587)
(29,848,301)
(23,230,445)
8,101,245
8,143,101
10,320,618
6,628,781
(4,692,502)
(5,063,279)
(4,654,275)
(3,716,489)
(1,282,240)
(1,041,254)
(795,690)
(504,722)
(103,770)
(188,729)
(429,763)
(208,902)
304,854
324,301
382,402
213,133
2,327,587
2,174,140
4,823,292
2,411,801
(596,328)
(881,456)
- -
(1,236,904)
(784,904)
(902,503)
1,049,141
494,355
507,780
3,920,789
1,362,660
394,476
(296,820)
(1,325,616)
(471,687)
888,831
210,960
2,595,173
890,973
Page | 10
2011 2010
29,859,226
20,944,943
(23,230,445)
(16,552,117)
6,628,781
4,392,826
(3,716,489)
(2,913,448)
(504,722)
(473,198)
(208,902)
(131,460)
213,133
54,942
2,411,801
929,662
-
1,049,141
(659,562)
1,362,660
270,100
(471,687)
(94,478)
890,973
175,622
BBAA
Assets
Property, plant and equipment
Long term Investment
Biological assets
Intangible assets
Long term advances and deposits
Compensation expense
Investment in subsidiary
Non Current Assets
Stores, spares and loose tools
Stock-in-trade
Trade debts
Advances, deposits and prepayments
Other receivables
Deferred employee share option compensation expense
Taxes recoverable
Short term investments
AALLAANNCCEE SSHHEEEETT
2014 2013 2012
15,021,519 14,504,771 11,023,246 9,615,426
- - -
858,680 716,465 668,455
112,208 122,838 104,569
Long term advances and deposits 109,174 93,132 81,862
112,581 168,865 -
427,288 -
16,214,162 16,033,359 12,741,150 10,270,045
788,141 739,671 610,640
3,697,787 3,083,583 3,494,605 2,637,816
95,962 153,573 149,074
Advances, deposits and prepayments 113,501 181,080 261,790
2,865,607 2,354,280 1,440,167 1,160,126
Deferred employee share option 90,430 136,153 -
1,637,018 636,588 347,075
- 170,000 2,708,750 1,294,000
Page | 11
2011 2010
9,615,426 7,148,219
- 960,000
496,809 428,293
133,598 142,433
24,212 23,126
- -
-
10,270,045 8,722,071
571,812 441,841
2,637,816 2,089,221
87,121 51,879
266,093 244,209
1,160,126 720,736
-
10,990 9,417
1,294,000 -
Cash and bank balances
Current Assets
Total Assets
Equity & Liabilities
Equity
Share capital
Advance against issue of share capital
Share premium
Employee share option compensation reserve
Hedging reserve
Re-measurement of post employment benefits - Actuarial loss
Inappropriate profit
Non-Current Liabilities
Long term finances
Obligations under finance lease
Deferred taxation
Deferred liabilities- pension scheme
Deferred Income
Current Liabilities
Current portion of long term finances
Trade and other payables
Derivative financial instruments
Accrued interest / mark-up on
* long term finances
*short term finances
Short term finances
Contingencies and Commitments
Total Equity & Liabilities
196,900 557,266 422,008
9,485,346 8,012,194 9,459,896 6,378,686
25,699,508 24,045,553 22,201,046 16,648,731
2014 2013 2012
7,665,961 7,665,961 7,615,776 7,517,889
issue of share capital - - 1,234
865,354 865,354 810,280
Employee share option compensation 399,740 407,133 -
(27,736) (9,581) 16,761 (18,178)
measurement of post employment (35,715)
(34,839)
(22,954) (17,730)
2,710,013
1,821,182
1,610,222 (984,951)
11,577,617 10,715,210 10,031,319 7,219,212
5,476,993 7,126,994 6,023,070 5,610,000
- - -
1,185,717 1,538,583 1,652,520
pension scheme - - -
2,516 9,410 17,390
6,665,226 8,674,987 7,692,980 5,922,549
Current portion of long term finances 1,605,597 1,032,008 1,685,823
3,222,661 3,369,182 2,394,108 2,370,783
41,397 14,517 -
194,025 229,312 302,273
61,092 10,337 6,566
2,331,893 - 85,389
7,456,665 4,655,356 4,476,747 3,506,970
Contingencies and Commitments
25,699,508 24,045,553 22,201,046 16,648,731
Page | 12
350,728 180,181
6,378,686 3,737,993
16,648,731 12,460,064
2011 2010
7,517,889 7,000,000
- -
722,182 -
- -
(18,178) 331
(17,730)
-
(984,951)
(1,875,924
)
7,219,212 5,124,407
5,610,000 4,625,000
2,589 4,714
308,090 180,964
1,870 3,462
- -
5,922,549 4,814,140
465,000 200,000
2,370,783 2,040,575
27,966 -
368,152 275,077
20,229 2,190
252,250 -
3,506,970 2,521,517
16,648,731 12,460,064
RRAA
PPrrooff iittaabbii ll ii ttyyRRaattiiooss
GGrroossssPPrrooff ii ttRRaatt iioo ::
CCoommmmeenntt ::
A company's cost of salesrepresents the expense related to labor,
manufacturing overhead involved in its production process. This expense is deducted from the
company's net sales/revenue, which results in a company'
is used to analyze how efficiently a company is using its raw m
manufacturing-related fixed assets to generate profits. A higher margin percentage is a
favorable profit indicator.Engro Food’s average gross profit
profit ratio in 2014 is caused by higher distributio
higher
milk
internationally.
YYeeaarr GrossGross
2014
2013
2012
2011
2010
18.83%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2014
AATTIIOOAANNAALLYYSSIISS
ss::
A company's cost of salesrepresents the expense related to labor, raw materials
manufacturing overhead involved in its production process. This expense is deducted from the
company's net sales/revenue, which results in a company' gross profit. The gross profit margin
is used to analyze how efficiently a company is using its raw materials, labor and
related fixed assets to generate profits. A higher margin percentage is a
.Engro Food’s average gross profit %age is 21.8%.the decline of gross
is caused by higher distribution cost and administration cost as well as
GrossGrossPro�itPro�itRatioRatio ==GrossGrossPro�itPro�it
NetNetSalesSales∗∗ 100100
18.83%
21.49%
25.69%
22.20%
20.97%
21.49%
25.69%
22.20%20.97%
2013 2012 2011 2010
Gross Profit Ratio
Page | 13
raw materials and
manufacturing overhead involved in its production process. This expense is deducted from the
The gross profit margin
aterials, labor and
related fixed assets to generate profits. A higher margin percentage is a
the decline of gross
n cost and administration cost as well as
prices of
100100
Gross Profit Ratio
NNeettPPrrooff ii ttRRaatt iioo ::
CCoommmmeenntt ::
A key financial indicator used to
measures how much of each Rupee earned by the company is translated into profits. A low
profit margin indicates a low margin of safety: higher risk that a decline in sales will erase
profits and result in a net loss. It indicates
its costs. The higher the margin is, the more effective the company is in converting revenue
into actual profit. Company’s best year regarding net profit ratio was
to 2.07% the reason is that company is currently investing in lot of new projects which will
yield profits in future
.
YYeeaarr
2014
2013
2012
2011
2010
2.07%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2014
A key financial indicator used to assess the profitability of a company. Net profit margin
measures how much of each Rupee earned by the company is translated into profits. A low
profit margin indicates a low margin of safety: higher risk that a decline in sales will erase
It indicates how efficient a company is and how well it controls
its costs. The higher the margin is, the more effective the company is in converting revenue
Company’s best year regarding net profit ratio was 2012 but
the reason is that company is currently investing in lot of new projects which will
NetNetPro�itPro�itRatioRatio ==NetNetPro�itPro�it
NetNetSalesSales∗∗ 100100
2.07%
0.56%
6.46%
2.98%
0.84%
0.56%
6.46%
2.98%
2013 2012 2011
Net Profit Ratio
Net Profit Ratio
Page | 14
assess the profitability of a company. Net profit margin
measures how much of each Rupee earned by the company is translated into profits. A low
profit margin indicates a low margin of safety: higher risk that a decline in sales will erase
how efficient a company is and how well it controls
its costs. The higher the margin is, the more effective the company is in converting revenue
but it is now decline
the reason is that company is currently investing in lot of new projects which will
0.84%
2010
Net Profit Ratio
RReettuurrnnOOnnAAsssseettss ::
CCoommmmeenntt ::
An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to
how efficient management is at using its
company are comprised of both debt and equity. Both of these types of financing are used to
fund the operations of the company. The ROA figure gives investors an idea of how effectively
the company is converting the money it has to invest int
number, the better, because the company is earning more money on less investment.
ROA is quite low company should work in this field.
RReettuurrnnOOnnEEqquuii ttyy ::
CCoommmmeenntt ::
The (ROE) measures how much the shareholders earned for their investment in the co. The
higher the ratio percentage, the more efficient management is in utilizing its equity base and
the better return is to investors.
stockholders.
YYeeaarr
2014
2013
2012
2011
2010
YYeeaarr ROEROE
2014
2013
2012
2011
2010
An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to
how efficient management is at using its assets to generate earnings.
company are comprised of both debt and equity. Both of these types of financing are used to
fund the operations of the company. The ROA figure gives investors an idea of how effectively
the company is converting the money it has to invest into net income. The higher the ROA
number, the better, because the company is earning more money on less investment.
ROA is quite low company should work in this field.
The (ROE) measures how much the shareholders earned for their investment in the co. The
higher the ratio percentage, the more efficient management is in utilizing its equity base and
return is to investors.Currentlycompany has not maintained a good return for the
ROAROA ==Pro�itPro�itAfterAfterTaxTax
AvgAvg.. TotalTotalAssetsAssets∗∗ 100100
3.57%
0.91%
13.37%
6.12%
1.41%
ROEROE ==NetNetPro�itPro�it
AvgAvg.. ShareholdersShareholders�� EquityEquity∗∗ 100100
7.68%
1.97%
25.81%
12.31%
3.43%
Page | 15
An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to
to generate earnings.The assets of the
company are comprised of both debt and equity. Both of these types of financing are used to
fund the operations of the company. The ROA figure gives investors an idea of how effectively
o net income. The higher the ROA
number, the better, because the company is earning more money on less investment. The
The (ROE) measures how much the shareholders earned for their investment in the co. The
higher the ratio percentage, the more efficient management is in utilizing its equity base and
good return for the
100100
LLiiqquuiiddiittyyRRaatt iiooss::
CCuurr rreennttRRaatt iioo::
CCoommmmeenntt ::
According to IAS current ratio 2 is best. The current ratio tells us the short term solvency of
the firm and tells the ability of the firm to repay its short term obligations. As per analysis we
can see that firm is in efficient position to repay its short
ratio is more than 1.
QQuuiicckkRRaatt iioo::
CCoommmmeenntt ::
Quick ratio measures the firm’s ability to pay off
the sale of inventory. The higher the quick ratio, the better the company's liquidity
position.Co.is doing average in this area. We can see that in
YYeeaarr
2014
2013
2012
2011
2010
YYeeaarr
2014
2013
2012
2011
2010
According to IAS current ratio 2 is best. The current ratio tells us the short term solvency of
the firm and tells the ability of the firm to repay its short term obligations. As per analysis we
can see that firm is in efficient position to repay its short term obligations because its currents
Quick ratio measures the firm’s ability to pay off its short term obligations without relying on
The higher the quick ratio, the better the company's liquidity
Co.is doing average in this area. We can see that in2012the quick ratio is
CurrentCurrentRatioRatio ==CurrentCurrentAssetsAssets
CurrentCurrentLiabilitiesLiabilities
1.27
1.72
2.14
1.83
1.48
QuickQuickRatioRatio ==QuickQuickAssetsAssets
CurrentCurrentLiabilitiesLiabilities
0.67
0.90
1.25
0.91
0.49
Page | 16
According to IAS current ratio 2 is best. The current ratio tells us the short term solvency of
the firm and tells the ability of the firm to repay its short term obligations. As per analysis we
because its currents
term obligations without relying on
The higher the quick ratio, the better the company's liquidity
the quick ratio is 1.25which
means that a company has more liquid assets than its currents liabilities so it can easily pay off
its short term obligations.
GGrraapp
0
0.5
1
1.5
2
2.5
2014 2013
1.27
1.72
0.67
more liquid assets than its currents liabilities so it can easily pay off
pphhiiccaallRReepprreesseennttaatt iioonn
2013 2012 2011 2010
1.72
2.14
1.83
1.48
0.9
1.25
0.91
Liquidity Ratios
Current Ratio Quick Ratio
Page | 17
more liquid assets than its currents liabilities so it can easily pay off
2010
0.49
FFiinnaanncciiaall LLeevveerraagge
DDeebbtt TTooEEqquuii ttyyRRaatt ii
CCoommmmeenntt ::
The debt to equity ratio shows the percentage of company financing that comes from
creditors and investors. A lower debt to equity ratio usually implies a more financially stable
business. Companies with a higher debt to equity ratio are considered more risky to creditors
and investors than companies with a lower ratio
equity but the ratio is not too much high so the co. is also not too much riskier.
DDeebbtt RRaatt iioo::
YYeeaarr
2014
2013
2012
2011
2010
YYeeaarr
2014
2013
2012
2011
2010
eeRRaattiiooss::
oo::
The debt to equity ratio shows the percentage of company financing that comes from
A lower debt to equity ratio usually implies a more financially stable
Companies with a higher debt to equity ratio are considered more risky to creditors
and investors than companies with a lower ratio. The company relies more on debt than
equity but the ratio is not too much high so the co. is also not too much riskier.
DebtDebtToToEquityEquity ==TotalTotalLiabilitiesLiabilities
TotalTotalEquityEquity
1.22
1.24
1.21
1.30
1.43
DebtDebtRatioRatio ==TotalTotalLiabilitiesLiabilities
TotalTotalAssetsAssets
0.55
0.55
0.55
0.57
0.59
Page | 18
The debt to equity ratio shows the percentage of company financing that comes from
A lower debt to equity ratio usually implies a more financially stable
Companies with a higher debt to equity ratio are considered more risky to creditors
. The company relies more on debt than
equity but the ratio is not too much high so the co. is also not too much riskier.
CCoommmmeenntt ::
A financial ratio that measures the extent of a company’s or consumer’s
is half as much as the assets of the company, it is a good sign for banks and other financial
institutions as they can have a guarantee that the company will easily payback
EEqquuii ttyy RRaatt iioo::
CCoommmmeenntt ::
Measures the amount of assets that are financed by owners' investments by comparing the
total equity in the company to the total assets. Companies with higher equity ratios show new
investors and creditors that investors believe in the company and are willing to finance it with
their investments.Engro foods is also not too much risky as it relies
its assets.
YYeeaarr
2014
2013
2012
2011
2010
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2014 2013
1.22 1.24
0.550.45
D/E Ratio
A financial ratio that measures the extent of a company’s or consumer’s leverage
is half as much as the assets of the company, it is a good sign for banks and other financial
institutions as they can have a guarantee that the company will easily payback
Measures the amount of assets that are financed by owners' investments by comparing the
to the total assets. Companies with higher equity ratios show new
investors and creditors that investors believe in the company and are willing to finance it with
Engro foods is also not too much risky as it relies 45% on equity to finance
EquityEquityRatioRatio ==TotalTotalEquityEquity
TotalTotalAssetsAssets
0.45
0.45
0.45
0.43
0.41
2013 2012 2011 2010
1.24 1.211.3
1.43
0.55 0.55 0.570.45 0.45 0.43
Financial Leverage Ratio
D/E Ratio Debt Ratio Equity ratio
Page | 19
leverage. As the debt
is half as much as the assets of the company, it is a good sign for banks and other financial
institutions as they can have a guarantee that the company will easily payback the debt.
Measures the amount of assets that are financed by owners' investments by comparing the
to the total assets. Companies with higher equity ratios show new
investors and creditors that investors believe in the company and are willing to finance it with
on equity to finance
2010
1.43
0.59
0.41
EEffff iicciieennccyy RRaattiiooss ::
IInnvveennttoorryy TTuurrnnoovveerr
IInnvveennttoorryy TTuurrnnoovveerr
CCoommmmeenntt ::
Inventory turnover is a ratio showing how many times a company's inventory is sold and
replaced over a period. A low turnover implies poor sales and,
high ratio implies either strong sales or ineffective buying.Engro Foods is doing well in this
area as its inventory sold in approx
YYeeaarr InventoryInventory
2014
2013
2012
2011
2010
YYeeaarr
2014
2013
2012
2011
2010
RRaatt iioo::
IInn DDaayyss ::
Inventory turnover is a ratio showing how many times a company's inventory is sold and
replaced over a period. A low turnover implies poor sales and, therefore, excess inventory. A
high ratio implies either strong sales or ineffective buying.Engro Foods is doing well in this
area as its inventory sold in approx38 days.
InventoryInventoryTurnoverTurnover ==CostCostofofsalessales
AvgAvg..InventoryInventory
10.30
9.00
9.70
9.80
10.20
InvInv.. TurnoverTurnoverDaysDays ==NoNo.. ofofdaysdays
InvInv.. TurnoverTurnover
35.44
40.56
37.63
37.24
35.78
Page | 20
Inventory turnover is a ratio showing how many times a company's inventory is sold and
therefore, excess inventory. A
high ratio implies either strong sales or ineffective buying.Engro Foods is doing well in this
sales
InventoryInventory
TurnoverTurnover
RReecceeii vvaabblleeTTuurrnnoovveerr
AAvveerraaggee CCooll ll eecctt iioonn
CCoommmmeenntt ::
It measures how many times a
period. The overall trend suggests that the company is currently controlling its accounts
receivable and transacting mostly on cash which is a good sign of liquidity.
YYeeaarr
2014
2013
2012
2011
2010
YYeeaarr AvgAvg
2014
2013
2012
2011
2010
rr RRaatt ii oo::
n PPeerr iioodd::
It measures how many times a business can turn its accounts receivable into cash during a
period. The overall trend suggests that the company is currently controlling its accounts
receivable and transacting mostly on cash which is a good sign of liquidity.
ReceivReceiv.. TurnoverTurnover ==NetNetCreditCreditSalesSales
AccountsAccountsReceivReceiv
344.90
250.40
340.10
429.60
547.10
AvgAvg.. CollectionCollectionPeriodPeriod ==NoNo.. ofofdaysdays
RevRev.. TurnoverTurnover
1.06
1.46
1.07
0.85
0.67
Page | 21
business can turn its accounts receivable into cash during a
period. The overall trend suggests that the company is currently controlling its accounts
SalesSales
ReceivReceiv..
daysdays
TurnoverTurnover
OOppeerraatt iinngg CCyycc llee ::
CCoommmmeenntt ::
Engro foods’ operating cycle is quite good As the cycle has shortened from last year it shows
the ability of the company to liquefy its current assets in a shorter period of time at times of
cash deficiency.
TToottaa ll AAsssseettss TTuurrnnoov
CCoommmmeenntt ::
It measures a company's ability to generate sales from its
average total assets. In other words, this
assets to generate sales. The company has maintained a good turnover
positive sign to the investors.
YYeeaarr
2014
2013
2012
2011
2010
YYeeaarr
2014
2013
2012
2011
2010
Engro foods’ operating cycle is quite good As the cycle has shortened from last year it shows
liquefy its current assets in a shorter period of time at times of
vvee rr RRaatt iioo::
It measures a company's ability to generate sales from its assets by comparing net sales with
. In other words, this ratio shows how efficiently a company can use its
The company has maintained a good turnover ratio which shows a
OperOperatingatingcyclecycle ==InventoeyInventoeyTurnoverTurnover
AvgAvg.. CollectionCollectionPeriodPeriod
36.50
42.01
38.70
38.09
36.45
TotalTotalAssetsAssetsTurnoverTurnover ==NetNetSalesSales
TotalTotalAssetsAssets
1.73
1.64
1.81
1.79
1.68
Page | 22
Engro foods’ operating cycle is quite good As the cycle has shortened from last year it shows
liquefy its current assets in a shorter period of time at times of
by comparing net sales with
shows how efficiently a company can use its
ratio which shows a
AssetsAssets
SShhaarreehhoollddeerr RRaattiioo
EEaarrnn iinnggssPPeerrSShhaarree ::
CCoommmmeenntt ::
Earnings per share serves as an indicator of a company's profitability.
because it earned less profit while the no. of shareholders are higher the best EPS was in 2012
as co. earned the highest net income in 2012.
YYeeaarr
2014
2013
2012
2011
2010
ooss::
per share serves as an indicator of a company's profitability.Engro foods’ EPS is low
because it earned less profit while the no. of shareholders are higher the best EPS was in 2012
o. earned the highest net income in 2012.
EarningEarningPerPerShareShare ==NetNetIncomeIncome
NoNo.. ofofSharesShares
1.16
0.28
3.41
1.19
0.25
Page | 23
Engro foods’ EPS is low
because it earned less profit while the no. of shareholders are higher the best EPS was in 2012
BBooookkVVaalluuee PPeerr SShhaa
CCoommmmeenntt ::
Book value per share indicates the
The Book Value of EFL is quite low company should take some majors to elevate Book value
per share so that shareholder can feel save.
YYeeaarr
2014
2013
2012
2011
2010
aarree ::
indicates the book value (or accounting value) of each
The Book Value of EFL is quite low company should take some majors to elevate Book value
per share so that shareholder can feel save.
BookBookValueValuePerPerShareShare ==TotalTotalEquityEquity
NoNo.. ofofSharesShares
15.10
13.98
13.20
9.63
7.32
Page | 24
) of each share of stock.
The Book Value of EFL is quite low company should take some majors to elevate Book value
PPrr iiccee EEaarrnn iinnggssRRaatt iioo
CCoommmmeenntt ::
The price-earnings ratio indicates the
company in order to receive one
company P/E ratio is now decreased compare it to 2013 it means company is doing quite well
in its business operations.
YYeeaarr
2014
2013
2012
2011
2010
oo::
earnings ratio indicates the Rupee amount an investor can expect to invest in a
company in order to receive one Rupee of that company’s earnings. As we can see that
company P/E ratio is now decreased compare it to 2013 it means company is doing quite well
PricePriceEarningEarning ==MarketMarketPerPerShareShare
EPSEPS
93.57
379.37
28.79
19.07
N/A
Page | 25
amount an investor can expect to invest in a
of that company’s earnings. As we can see that
company P/E ratio is now decreased compare it to 2013 it means company is doing quite well
IInndduussttrryyAAvveerraagg
ggee::
Page | 26
TTRR
BBAA
ASEETS
Property, plant and equipment
Biological assets
Intangible assets
Long term advances and deposits
Deferred employee share option compensation expense
Investment in subsidiary
Non-Current Assets
Stores, spares and loose tools
Stock-in-trade
Trade debts
Advances, deposits and prepayments
Other receivables
Deferred employee share option compensation expense
Taxes recoverable
Short term investments
Cash and bank balances
Current Assets
Total Assets
RREENNDDAANNAALLYYSSIISS
AALLAANNCCEE SSHHEEEETT
2014 2013
2012
Property, plant and equipment 15021519 14504771 10958079
15.56% 15.03% 11.35%
858680 716465 668455
112208 122838 104589
91.45% 100.11% 85.24%
Long term advances and deposits 109174 93132 81862
33.19% 28.32% 24.89%
Deferred employee share option compensation expense 112581 168865
427288
16214162 16033359 12675983 10270045
19.54% 19.33% 15.28%
Stores, spares and loose tools 788141 739671 675807
82.00% 76.96% 70.31%
3697787 3083583 3494605
874.99% 729.66% 826.92%
95962 153573 149074
3.82% 6.11% 5.93%
Advances, deposits and prepayments 113501 181080 261790
7.73% 12.33% 17.82%
2865607 2354280 1440167
Deferred employee share option compensation expense 90430 136153
103.61% 156.00% 0.00%
1637018 636588 334714
305.32% 118.73% 62.43%
170000 2706750
37.71% 600.36%
196900 557266 422006
4.98% 14.09% 10.67%
9,485,346 8,012,194 9,459,896 6,378,686
88.88% 75.07% 88.64%
25699508 24145553 22188686 16639184
27.42% 25.77% 23.68%
Page | 27
2011 2010 2009
9615426 7148219 96517512
9.96% 7.41%
496809 428293
133598 142433 122704
108.88% 116.08%
24212 23126 328907
7.36% 7.03%
2787
10270045 8722071 82960587
12.38% 10.51% 100%
571812 441841 961117
59.49% 45.97%
2637816 2089221 422607
624.18% 494.36%
87121 51879 2514425
3.46% 2.06%
266093 244209 1469155
18.11% 16.62%
1160126 720736 275714
87278
0.00% 0.00%
1443 9417 536167
0.27% 1.76%
1294000
450857
287.01% 0.00%
350728 180181 3955347
8.87% 4.56%
6,378,686 3,737,993 10672667
59.77% 35.02% 100%
16639184 12460064 93709438
17.76% 13.30% 100%
Equity &Liabilities
EQUITY
Share capital
Share premium
Employee share option compensation reserve
Hedging reserve
Remeasurement of post employment benefits - Actuarial loss
Unappropriated profit / loss
Total Equity
Non-Current Liabilities
Long term finances
Deferred liabilities
Derivative financial instruments
Deferred taxation
Deferred income
Total Non-Current Liabilities
2014 2013 2012 2011
7,665,961 665,961 7,615,776 7,577,18
9
257.30% 22.35% 255.61% 254.32%
865,354 865,354 810,280 722,182
8.20% 8.20% 7.68% 6.85%
399,740 407,133
138.67% 141.24% 0.00% 0.00%
(27,736) (9,581) 16,761 (18,178)
4.55% 1.57% -2.75% 2.98%
Actuarial (35,715) (34,839)
2,710,013 1,821,182 1,610,222 (984,951)
29.29% 19.69% 17.41% -10.65%
11,577,617
10,715,210
10,064,273
7,236,942
40.08% 37.09% 34.84% 25.05%
5,476,993 7,126,994 6,023,070 5,610,00
0
1,870
1,185,717 1,538,583 1,652,520 308,090
2,516 9,410 17,300
6,665,226 8,674,987 7,692,980 5,921,25
5
416.31% 541.84% 480.51% 369.84%
Page | 28
2011 2010 2009
base year
7,577,18 7,000,000 2,979,426
254.32% 234.94% 100.00%
722,182 10,550,08
1
0.00% 100.00%
288,258
0.00% 100.00%
(18,178) 331 (609,719)
-0.05% 100.00%
(984,951) 1,875,92
4 9,250,972
10.65% 20.28% 100.00%
7,236,94 5,124,407
28,888,238
25.05% 17.74% 100.00%
5,610,00 4,625,000
3,462 988,169
612,842
308,090 180,964
5,921,25 4,814,140 1,601,011
369.84% 300.69% 100.00%
Current Liabilities
Current portion of long term finances
Trade and other payables
Derivative financial instruments
long term finances
short term finance
Short term finances
Total Current Liabilities
Contingencies and Commitments
Total Equity & Liabilities
1,605,597 1,032,008 1,685,823 465,000
198.20% 127.39% 208.10% 57.40%
3,222,661 3,369,182 2,358,703 2,343,506
101.96% 106.59% 74.62% 74.14%
41,397 14,517
27,966
194,025 229,312 302,273 368,152
61,092 10,337 6,585 20,229
31.21% 5.28% 3.36% 10.33%
2,331,893
85,389 252,250
7,456,665 4,655,356 4,441,432 3,480,987
116.59% 72.79% 69.45% 54.43%
25,699,508 24,045,553 22,188,685 16,639,184
27.42% 25.66% 23.68% 17.76%
Page | 29
200,000 810,100
24.69% 100.00%
2,040,575 3,160,852
64.56% 100.00%
740,043
275,077
2,190 195,753
1.12% 100.00%
2,521,517 6,395,489
39.43% 100.00%
12,460,064 93,709,438
13.30% 100.00%
TTRRE
IINNCCOO
2014
Net sales
43,027,377
142.61%
Cost of sales
(34,926,132
150.28%
Gross profit
8,101,245
116.88%
Distribution and marketing expenses
(4,692,502)
241.24%
Administrative expenses
(1,282,240)
270.97%
Other operating expenses
(103,770)
24.47%
Other income
304,854
352.57%
Operating profit
2,327,587
250.37%
Other expenses
(596,328)
Finance costs
(1,236,904)
93.66%
Profit before taxation
494,355
9.48%
Taxation
394,476
-31.36%
Profit for the year
888,831
22.46%
REENNDDAANNAALLYYSSIISS OOMMEE SSTTAATTEEMMEENNTT
2014 2013 2012 2011
43,027,377 37,890,688 40,168,919 29,859,226 20,944,943
142.61% 125.58% 133.14% 98.96%
(34,926,132)
(29,747,587)
(29,848,301)
(23,230,445)
(16,552,117
150.28% 128.00% 128.43% 99.96%
8,101,245 8,143,101 10,320,618 6,628,781 4,392,826
116.88% 117.48% 148.90% 95.63%
(4,692,502) (5,063,279) (4,709,275) (3,716,489) (2,913,448)
241.24% 260.30% 242.10% 191.06% 149.78%
(1,282,240) (1,041,254) (740,690) (504,722) (473,198)
270.97% 220.05% 156.53% 106.66% 100.00%
(103,770) (188,729) (492,763) (208,902) (131,460)
24.47% 44.50% 116.19% 49.26%
304,854 324,301 382,402 213,133
352.57% 375.06% 442.25% 246.49%
2,327,587 2,174,140 4,823,292 4,211,801 929,662
250.37% 233.86% 518.82% 453.05% 100.00%
(596,328) (881,456) - -
- -
(1,236,904) (784,904) (902,503) (1,049,141) (659,562)
93.66% 59.44% 68.34% 79.45%
494,355 507,780 3,920,789 1,362,660 270,100
9.48% 9.74% 75.18% 26.13%
394,476 (296,820) (1,325,616) (471,687) (94,478)
31.36% 23.60% 105.40% 37.50%
888,831 210,960 2,595,173 890,973 175,622
22.46% 5.33% 65.58% 22.51%
Page | 30
2010 2009
base year
20,944,943 30,171,520
69.42% 100.00%
(16,552,117)
(23,240,176)
71.22% 100.00%
4,392,826 6,931,344
63.38% 100.00%
(2,913,448) (1,945,176)
149.78% 100.00%
(473,198) -
100.00% -
(131,460) (424,110)
31.00% 100.00%
54,249 86,467
62.74% 100.00%
929,662 -
100.00% -
- -
- -
(659,562) (1,320,579)
49.94% 100.00%
270,100 5,214,956
5.18% 100.00%
(94,478) (1,257,696)
7.51% 100.00%
175,622 3,957,250
4.44% 100.00%
GGrraapp
0.00%
100.00%
200.00%
300.00%
400.00%
500.00%
600.00%
Non-Current Assets
Current Assets
2014
-100.00%
0.00%
100.00%
200.00%
300.00%
400.00%
500.00%
600.00%
2014
pphhiiccaallRReepprreesseennttaatt iioonn
Current TotalAssets Total Equity Total Non-Current
Liabilities
Current Liabilities
Balance Sheet
2014 2013 2012 2011 2010 2009
Income statement
2014 2013 2012 2011 2010 2009
Page | 31
Current Liabilities
Total Equity & Liabilities
Assets
Property, plant and equipment
15,021,51
9
Long term Investment -
Biological assets
858,680
Intangible assets
112,208
Long term advances and deposits
109,174
Deferred employee share option compensation expense
112,581
Investment in subsidiary
Non Current Assets
16,214,16
2
Stores, spares and loose tools
788,141
Stock-in-trade
3,697,787
Trade debts
95,962
Advances, deposits and prepayments
113,501
Other receivables
2,865,607
Deferred employee share option compensation expense
90,430
Taxes recoverable
1,637,018
Short term investments -
Cash and bank balances
196,900
Current Assets
9,485,346
Total Assets
25,699,
508
VV
2014 2013 2012 2011
15,021,51
9
58.45%
14,504,77
1
60.32%
11,023,246
49.65%
9,615,426
- - - - - -
858,680
3.34%
716,465
2.98%
668,455
3.01%
496,809
12,208
0.44%
122,838
0.51%
104,569
0.47%
133,598
109,174
0.42%
93,132
0.39%
81,862
0.37%
24,212
112,581
0.44%
168,865
0.70%
- - -
427,288 1.78
% - - -
16,214,16
2
63.09%
16,033,35
9
66.68%
12,741,150
57.39%
10,270,04
5
788,141
3.07%
739,671
3.08%
610,640
2.75%
571,812
3,697,787
14.39%
3,083,583
12.82%
3,494,605
15.74%
2,637,816
95,962
0.37%
153,573
0.64%
149,074
0.67%
87,121
113,501
0.44%
181,080
0.75%
261,790
1.18%
266,093
2,865,607
11.15%
2,354,280
9.79%
1,440,167
6.49%
1,160,126
90,430
0.35%
136,153
0.57%
- - -
1,637,018
6.37%
636,588
2.65%
347,075
1.56%
10,990
-
170,000 0.71
%
2,708,750 12.20%
1,294,000
196,900
0.77%
557,266
2.32%
422,008
1.90%
350,728
9,485,346
36.91%
8,012,194
33.32%
9,459,896
42.61%
6,378,686
25,699,
508
100
%
24,045,
553
100
%
22,201,0
46
100
%
16,648,
731
VVEERRTTIICCAALLAANNAALLYYSSIISS
BBAALLAANNCCEE SSHHEEEETT
Page | 32
2011 2010
9,615,426
57.75%
7,148,219
57.37%
-
960,000 7.70
%
2.98%
428,293
3.44%
0.80%
142,433
1.14%
0.15%
23,126
0.19%
- - -
- -
61.69%
8,722,071
70.00%
3.43%
441,841
3.55%
2,637,816
15.84%
2,089,221
16.77%
0.52%
51,879
0.42%
1.60%
244,209
1.96%
1,160,126
6.97%
720,736
5.78%
- -
0.07%
9,417
0.08%
1,294,000
7.77%
- -
2.11%
180,181
1.45%
6,378,686 38.31%
3,737,993
30.00%
100
%
12,460,
064
100
%
SS
Equity &
Liabilities 2014
Equity
Share capital 7,665,9
61
Advance against issue of share capital
-
Share premium 865,35
4
Employee share option compensation reserve
399,740
Hedging reserve
(27,736)
Remeasurement of post employment benefits - Actuarial loss
(35,715)
Inappropriate profit
2,710,013
11,577,617
Non-Current Liabilities
Long term finances 5,476,9
93
Obligations under finance lease -
Deferred taxation 1,185,7
17
Deferred liabilities- pension scheme
-
Deferred Income 2,516
6,665,226
Current Liabilities Current portion of long term finances
1,605,597
Trade and other payables 3,222,6
61
Derivative financial instruments 41,397
Accrued interest / mark-up on
* long term finances 194,02
5
*short term finances 61,092
Short term finances 2,331,8
93
7,456,665
Contingencies and Commitments
Total Equity &
Liabilities
25,69
9,508
2014 2013 2012 2011
29.83%
7,665,961
31.88%
7,615,776
34.30%
7,517,889
- - - 1,234 0.01
% -
3.37%
865,354
3.60%
810,280
3.65%
722,182
1.56%
407,133
1.69%
- - -
-0.11
% (9,581)
-0.04
% 16,761
0.08%
(18,178)
-0.14
%
(34,839)
-0.14
%
(22,954)
-0.10
%
(17,730)
10.54%
1,821,182
7.57%
1,610,222
7.25%
(984,951)
45.05%
10,715,210
44.56%
10,031,319
45.18%
7,219,212
21.31%
7,126,994
29.64%
6,023,070
27.13%
5,610,000
- - - - - 2,589
4.61%
1,538,583
6.40%
1,652,520
7.44%
308,090
- - - - - 1,870
0.01
% 9,410
0.04%
17,390 0.08
% -
25.94%
8,674,987
36.08%
7,692,980
34.65%
5,922,549
6.25%
1,032,008
4.29%
1,685,823
s 465,00
0
12.54%
3,369,182
14.01%
2,394,108
10.78%
2,370,783
0.16
% 14,517
0.06%
- - 27,966
0.00
% 0.00
%
0.75%
229,312
0.95%
302,273
1.36%
368,152
0.24
% 10,337
0.04%
6,566 0.03
% 20,229
9.07%
- - 85,389 0.38
% 252,25
0
29.01%
4,655,356
19.36%
4,476,747
20.16%
3,506,970
100
%
24,04
5,553
100
%
22,20
1,046
100
%
16,64
8,731
Page | 33
2010
45.16%
7,000,000
56.18%
- - -
4.34%
- -
- - -
-0.11
% 331
0.00%
-0.11
% - -
-5.92
%
(1,875,924)
-15.
06%
43.36%
5,124,407
41.13%
33.70%
4,625,000
37.12%
0.02%
4,714 0.04%
1.85%
180,964
1.45%
0.01%
3,462 0.03%
- - -
35.57%
4,814,140
38.64%
2.79%
200,000
1.61%
14.24%
2,040,575
16.38%
0.17%
- -
0.00%
0.00%
2.21%
275,077
2.21%
0.12%
2,190 0.02%
1.52%
- -
21.06%
2,521,517
20.24%
100
%
12,46
0,064
10
0%
`
Equity
Share capital
Share premium
Employee share option compensation reserve
Hedging reserve
Remeasurement of post employment benefits - Actuarial loss
Unappropriated profit / loss
Non-Current Liabilities
Long term finances
Deferred liabilities
Derivative financial instruments
Deferred taxation
Deferred income
Current Liabilities
Current portion of long term finances
Trade and other payables
Derivative financial instruments
Accrued interest / mark-up on
long term finances
short term finance
Short term finances
Contingencies and Commitments
Total Equity & Liabilities
HHOORRIIZZ
BBAA
2014 Vs 2013
2013 Vs 2012
2012 Vs 2011
1051.11% -91.26% 0.51%
0.00% 6.80% 12.20%
-1.82% 0.00%
189.49% -157.16% -192.20%
2.51% 0.00%
48.81% 13.10% -263.48%
8.05% 6.47% 39.07%
-23.15% 18.33% 7.36%
-100.00%
-22.93% -6.89% 436.38%
-73.26% -45.61%
-23.17% 12.76% 29.92%
55.58% -38.78% 262.54%
-4.35% 42.84% 0.65%
185.16% 0.00% -100.00%
-15.39% -24.14% -17.89%
491.00% 56.98% -67.45%
-100.00% -66.15%
60.17% 4.82% 27.59%
6.88% 8.37% 33.35%
ZZOONNTTAALL AANNAALLYYSSII
AALLAANNCCEE SSHHEEEETT
Page | 34
2011 Vs 2010
2010 Vs 2009
8.25% 134.94%
-100.00%
-100.00%
-5591.84% -100.05%
-152.50% -79.72%
41.22% -82.26%
21.30%
-45.98% -99.65%
-100.00%
70.25%
23.00%
132.50% -75.31%
14.85% -35.44%
-100.00%
33.84%
823.70% -98.88%
38.05% -60.57%
33.54% -86.70%
IISS
Assets
Non-Current Assets
Property, plant and equipment
Biological assets
Intangible assets
Long term advances and deposits
Deferred employee share option compensation expense
Investment in subsidiary
Current Assets
Stores, spares and loose tools
Stock-in-trade
Trade debts
Advances, deposits and prepayments
Other receivables
Deferred employee share option compensation expense
Taxes recoverable
Short term investments
Cash and bank balances
HHOORRIIZZ
BBAA
2014 VS 2013
2013 Vs 2012
2012 Vs 2011
3.56% 32.37% 13.96%
19.85% 7.18% 34.55%
-8.65% 17.45% -21.71%
17.23% 13.77% 238.11%
-33.33%
-100.00%
1.13% 26.49% 23.43%
6.55% 9.45% 18.19%
19.92% -11.76% 32.48%
-37.51% 3.02% 71.11%
Advances, deposits and prepayments -37.32% -30.83% -1.62%
21.72% 63.47% 24.14%
-33.58%
157.16% 90.19% 23095.70
%
-100.00% -93.72% 109.18%
-64.67% 32.05% 20.32%
6.44% 8.82% 33.35%
ZZOONNTTAALLAANNAALLYYSS
AALLAANNCCEE SSHHEEEETT
Page | 35
2011 Vs 2010
2010 Vs 2009
34.51% -92.59%
16.00%
-6.20% 16.08%
4.70% -92.97%
-100.00%
17.75% -89.49%
29.42% -54.03%
26.26% 394.36%
67.93% -97.94%
8.96% -83.38%
60.96% 161.41%
-100.00%
-84.68% -98.24%
-100.00%
94.65% -95.44%
33.54% -86.70%
SSIISS
Net sales
Cost of sales
Gross profit
Distribution and marketing expenses
Administrative expenses
Other operating expenses
Other income
Operating profit
Other expenses
Finance costs
Profit before taxation
Taxation
Profit for the year
HHOORR
IINN
2014 Vs2013
2013 Vs 2012
2012 Vs 2011
13.56% -5.67% 34.53%
17.41% -0.34% 28.49%
-0.51% -21.10% 55.69%
Distribution and marketing expenses -7.32% 7.52% 26.71%
23.14% 40.58% 46.75%
-45.02% -61.70% 135.88%
-6.00% -15.19% 79.42%
7.06% -54.92% 14.52%
-32.35%
57.59% -13.03% -13.98%
-2.64% -87.05% 187.73%
-232.90% -77.61% 181.04%
321.33% -91.87% 191.27%
RRIIZZOONNTTAALLAANNAALL
NNCCOOMMEE SSTTAATTEEMMEENNT
Page | 36
2011 Vs 2010
2010 Vs 2009
42.56% -30.58%
40.35% -28.78%
50.90% -36.62%
27.56% 49.78%
6.66%
58.91% -69.00%
292.88% -37.26%
353.05%
59.07% -50.06%
404.50% -94.82%
399.26% -92.49%
407.32% -95.56%
LYYSSIISS NTT
OOVVEERR--AALLLL AANNAALLYYSSIISS ::
Engro Foods financial analysis reflects that sufficient financial resources to meet its
obligations. The financial managers of the company are doing a prudent and efficient job. The
Asset management activities, investing
managed.
At Engro the driving force behind their growth has their deep commitment to elevating
consumer while making a meaningful contribution to our country’s economy. To live up to this
commitment their business strategy has been geared towards versatility, innovation and
inclusive growth.
Despite a challenging business environment in
strengths and regained a significant competitive advantage in the market. A c
challenge was to develop strategies to overcome and withstand the impact of rising costs
caused by various factors such as; higher energy costs and increase in the international prices
of milk in the first half of the year
implemented to bolster systems and improve margins. The heart of their success is without
doubt the dedication of their employees. By building on their expertise to drive cost efficiency
heighten consumer satisfaction not only
significant contribution to raising food security and prosperity for Pakistan.
Unexpected bottlenecks in their distribution channel last year (
specific issues that caused their
supply chain system by cost optimization and enhancing operational excellence. By
distribution network had undergone a comprehensive overhaul and throughout the year
supply chain services remained critical to their business vision performance. They continued to
regain a dominant position in the market and achieved highest ever UHT market share of
in November 2014alone as compared to
marketing strategies bore fruit in
number of their brands particularly
diversification strategies to enter the market in other dairy segments,
drive sales volumes for the next 10 years or more.
In 2014, the country as well as the local food industry faced numerous challenges. The energy
crises, security and political situation continues to exert significant pressure on the e
and business operations. Despite these challenges company managed double digit revenue
growth with positive long-term outlook and tested opportunities for business expansion
through diversification into new product lines and brand differentiation. T
reported Rs. 43.3 billion in consolidated revenue v/s Rs.
exhibiting a growth of 14%. Effective investment on brands and efficient product mix
management remained key elements in the achievements of growth in top line of
financial analysis reflects that sufficient financial resources to meet its
obligations. The financial managers of the company are doing a prudent and efficient job. The
Asset management activities, investing activities, Financing activities and cash flows are well
At Engro the driving force behind their growth has their deep commitment to elevating
consumer while making a meaningful contribution to our country’s economy. To live up to this
their business strategy has been geared towards versatility, innovation and
Despite a challenging business environment in 2014, they continued to build on their
strengths and regained a significant competitive advantage in the market. A c
challenge was to develop strategies to overcome and withstand the impact of rising costs
caused by various factors such as; higher energy costs and increase in the international prices
of milk in the first half of the year 2014. Layer by layer, a number of initiatives were
implemented to bolster systems and improve margins. The heart of their success is without
doubt the dedication of their employees. By building on their expertise to drive cost efficiency
heighten consumer satisfaction not only did their business succeed but they also made
significant contribution to raising food security and prosperity for Pakistan.
Unexpected bottlenecks in their distribution channel last year (2013), they focused on tackling
specific issues that caused their slowdown and also strove to bring back efficiency to their
supply chain system by cost optimization and enhancing operational excellence. By
distribution network had undergone a comprehensive overhaul and throughout the year
s remained critical to their business vision performance. They continued to
regain a dominant position in the market and achieved highest ever UHT market share of
alone as compared to 48% in December 2013. In addition, their cutting edg
marketing strategies bore fruit in 2014and we saw significant gains in sales volumes for a
number of their brands particularly Tarang and Olper’s. At present they are also developing
diversification strategies to enter the market in other dairy segments, which they expect to
drive sales volumes for the next 10 years or more.
, the country as well as the local food industry faced numerous challenges. The energy
crises, security and political situation continues to exert significant pressure on the e
and business operations. Despite these challenges company managed double digit revenue
term outlook and tested opportunities for business expansion
through diversification into new product lines and brand differentiation. T
billion in consolidated revenue v/s Rs. 37.9 billion reported last year (
. Effective investment on brands and efficient product mix
management remained key elements in the achievements of growth in top line of
Page | 37
financial analysis reflects that sufficient financial resources to meet its
obligations. The financial managers of the company are doing a prudent and efficient job. The
activities, Financing activities and cash flows are well
At Engro the driving force behind their growth has their deep commitment to elevating
consumer while making a meaningful contribution to our country’s economy. To live up to this
their business strategy has been geared towards versatility, innovation and
, they continued to build on their
strengths and regained a significant competitive advantage in the market. A considerable
challenge was to develop strategies to overcome and withstand the impact of rising costs
caused by various factors such as; higher energy costs and increase in the international prices
a number of initiatives were
implemented to bolster systems and improve margins. The heart of their success is without
doubt the dedication of their employees. By building on their expertise to drive cost efficiency
did their business succeed but they also made
), they focused on tackling
slowdown and also strove to bring back efficiency to their
supply chain system by cost optimization and enhancing operational excellence. By 2014 their
distribution network had undergone a comprehensive overhaul and throughout the year
s remained critical to their business vision performance. They continued to
regain a dominant position in the market and achieved highest ever UHT market share of 56%
. In addition, their cutting edge
and we saw significant gains in sales volumes for a
. At present they are also developing
which they expect to
, the country as well as the local food industry faced numerous challenges. The energy
crises, security and political situation continues to exert significant pressure on the economy
and business operations. Despite these challenges company managed double digit revenue
term outlook and tested opportunities for business expansion
through diversification into new product lines and brand differentiation. The company
billion reported last year (2013)
. Effective investment on brands and efficient product mix
management remained key elements in the achievements of growth in top line of 2014.
Gross margin declined from 22%
passed on to the consumers in the competitive market environment. On an overall basis,
company’s profit increased from Rs.
2014 also witnessed revitalization of distribution network of the company and significant
growth in milk collection. Moreover, the successful commissioning of new powder plant
provided a clear advantage in terms of long term sustainability of the margins.
The key highlight of 2014 was Olper’s
investment on brand and introduction of new innovative packaging in
results in 2014.Tarang was under volumetric pressure during first half of
competitive environment. With the support of price promotions and consumer centric
campaigns, Tarang reclaimed its market share and has surpassed historical volumes in
growing 35% in 4thquarter v/s 3rd
During the year two new products were launched,
quarter of 2013 the company commenced the pilot project to assess the viability of
pasteurized milk in Pakistan, whereby, shops under the brand name of “Mabrook” were
opened on a franchise model. The company has carried out comprehensive analysis of pilot
project and concluded that while the results and consumer acceptance rate of the concept
were encouraging, mass acceptance will take some time. We believe improvement in overall
energy situation and regulators involvement to invoke minimum pasteurized law, as followed
in other neighboring countries such as India, can be a key success criterion for pasteurized
milk growth in country. Accordingly, the company has decided to conclude the pilot project
and has recorded all the expenses in
project.
As they prepare to confront the unforeseen challenges of the New Year, company’s
management can put its unreserved confidence in its team’s ability to continue to sustain the
current growth momentum and build on the tremendous gains o
achieves even greater
22% to 19% on account of higher milk process which were not
in the competitive market environment. On an overall basis,
company’s profit increased from Rs. 211 million in 2013 to Rs. 889 million in
also witnessed revitalization of distribution network of the company and significant
k collection. Moreover, the successful commissioning of new powder plant
provided a clear advantage in terms of long term sustainability of the margins.
Olper’s significant volume growth which was led by continuous
on brand and introduction of new innovative packaging in 2013
was under volumetric pressure during first half of 2014
competitive environment. With the support of price promotions and consumer centric
reclaimed its market share and has surpassed historical volumes in rd quarter of this year.
During the year two new products were launched, Olper’sLassiandY-Frooter
pany commenced the pilot project to assess the viability of
pasteurized milk in Pakistan, whereby, shops under the brand name of “Mabrook” were
opened on a franchise model. The company has carried out comprehensive analysis of pilot
hat while the results and consumer acceptance rate of the concept
were encouraging, mass acceptance will take some time. We believe improvement in overall
energy situation and regulators involvement to invoke minimum pasteurized law, as followed
eighboring countries such as India, can be a key success criterion for pasteurized
milk growth in country. Accordingly, the company has decided to conclude the pilot project
and has recorded all the expenses in 2014’s financial statements in relation to th
As they prepare to confront the unforeseen challenges of the New Year, company’s
management can put its unreserved confidence in its team’s ability to continue to sustain the
current growth momentum and build on the tremendous gains of 2014
levels in the future.
Page | 38
on account of higher milk process which were not
in the competitive market environment. On an overall basis,
million in 2014.The year
also witnessed revitalization of distribution network of the company and significant
k collection. Moreover, the successful commissioning of new powder plant
provided a clear advantage in terms of long term sustainability of the margins.
significant volume growth which was led by continuous
2013 which yielded
2014 due to intense
competitive environment. With the support of price promotions and consumer centric
reclaimed its market share and has surpassed historical volumes in 2014
Frooter. During the last
pany commenced the pilot project to assess the viability of
pasteurized milk in Pakistan, whereby, shops under the brand name of “Mabrook” were
opened on a franchise model. The company has carried out comprehensive analysis of pilot
hat while the results and consumer acceptance rate of the concept
were encouraging, mass acceptance will take some time. We believe improvement in overall
energy situation and regulators involvement to invoke minimum pasteurized law, as followed
eighboring countries such as India, can be a key success criterion for pasteurized
milk growth in country. Accordingly, the company has decided to conclude the pilot project
’s financial statements in relation to the closure of
As they prepare to confront the unforeseen challenges of the New Year, company’s
management can put its unreserved confidence in its team’s ability to continue to sustain the
2014 so the company
levels in the future.