A Financial Analysis of their Performance for Year 2013 vs 2012

2. Nestle is a multinational company which works as a brand and it has many
small companies working under it.
It was initially introduced in 1867 with the launch of its first product that was
dehydrated kids food and this was very successful at that time and thus Nestle
got the high profits within no time.
Nestlé is the world’s leading nutrition, health and wellness company.
It employs more than 330,000 people and has 461 factories in 83 countries
around the world; almost half of these are in developing countries and
more than 2000 brands world wide.
Nestle had manage to produce many of brands such as baby food, cereals,
chocolate , confectionery, drinks, ice cream , pet care, coffee, dairy and
many more all over the world.
Example of products : Kit Kat, Maggie, Nespray, Nescafe and Milo.

3. (i) CR - Current Ratio
Current assets
Current Liabilities
2013 2012
929,987 840,703
1,071,862 929,392
0.87 : 1 0.90 : 1
It’s almost the same ratio for both year result, with 2013 is
Slightly better by 0.03.

4. (ii) ACP – Average Collection Period
Accounts receivable
Sales
2013 2012
502,207 X 365 394,144 X 365
4,787,925 4,556,423
38 Days 31 Days
The above comparison shows 2012 was better than 2013 by
7 days in term of Collection Period.

5. (iii) ROI – Return of Investment
Operating Income
Total assets
2013 2012
719,054 X 100 637,668 X 100
2,088,734 1,905,169
34.42% 33.47%
The above comparison shows 2013 was having a better ROI
compare to 2012 by 1%.

6. (iv) OPM - Operating Profit Margin
Operating Income
Sales
2013 2012
719,054 X 100 637,668 X 100
4,787,925 4,556,423
15% 14%
The above comparison shows 2013 was having a better Profit
Margin compare to 2012 by 1%.

7. » SWOT Analysis
» S – Good Branding, R&D capabilities, good distribution channels.
» W – Less implementation of CSR activity.
» O – Increase demand in Health conscious product and Establish of
new JV (Joint Ventures)
» T – Food Contamination, growth of private labels, rising of raw
material prices.
» In conclusion, Nestle is actually growing by 5%, still they are competitive in
term of market growth in their own field.
For the 2014 Strategies, Nestle has launch new campaign :
“Reigniting the Growth”, mainly focusing as below area.
» To launch earlier a new product back from customer demand Example : Maggie
Big Kari, Bliss Greece, Ais Krim Goreng etc.
» To Improve factory productivity through process optimization, i.e. MAGGI, has
identified ways in which to increase capacity by 500 tons without any cost
impact.
» To launch TPM on selected factory to Improve operation cost.