analysis of financial statements

Analysis of Honey Bun

LimitedAnnual Report

Board MembersYana-Kaye White

Natoya KellyAlician Humes

Alex EllisShamoya SmithCashell Walker

Sherri-Ann Myers

Statement of Comprehensive Income

Statement of Financial Position Cash Flow Statement Non Financial Statement items Comparison with Salada Foods

Statement of Comprehensiv

e Income

2010 2011 2012

REVENUES 448.561798 560.847134 611.3332

GROSS PROFIT 178.647642 235.876807 269.271825

EXPENSES 146.2 197.1 227

NET PROFIT 17.189863 27.629827 41.541788

$50.00

$150.00

$250.00

$350.00

$450.00

$550.00

$650.00

SUMMARY GRAPHICAL INCOME STATEMENTA

mou

nt in

Mill

ions

Ratio Analysis of Income StatementRatio 2010 2011 2012

Gross Margin

Percentage

39.83% 42.06% 44.05%

Net Margin Percentage

3.83% 4.93% 6.08%

Statement of Financial Position

(Balance Sheet)

2010 2011 2012

Current Assets 57.080373 78.634268 107.491698

Current Liabilities 64.104703 51.692889 45.940498

10.00

30.00

50.00

70.00

90.00

110.00

AM

OU

NT

IN M

ILLI

ON

S

2010 2011 2012

1 1 10.89

1.52

2.34

Current Ratio

CURRENT LIABILITIESCURRENT ASSETS

Other Ratios

Ratio 2010 2011 2012

Debt to Equity

44% 32% 18%

Acid Test Ratio

0.62 to 1 1.10 to 1 1.72 to 1

Operating Cash Flow

Ratio

0.57 to 1 0.72 to 1 1.06 to 1

2010 2011 2012

Bank 7.048 10.72 23.95

Retained Earnings 88.099 115.781 151.766

$10.00

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Cash compared to Retained EarningsA

mou

nt in

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ions

Statement of Cash Flow

2010 2011 2012

Investments 10.04 18.46 0

PPE 42.57 41.17 29.04

Intangible Assets 0 5.46 4.46

2.50

7.50

12.50

17.50

22.50

27.50

32.50

37.50

42.50

Investing ActivitiesA

mou

nt in

Mill

ions

Table Showing Financial ActivitiesYear Largest Activity Second Largest

Activity

2010 Proceeds from Borrowing - $28 million

Dividend paid - $8 million

2011 Issue of shares $46.01 million

Dividend paid $6.45 million

2012 Repayment of Borrowings - $4.21 million

Dividend Paid $11.31 million

Is this a good investing and

financing strategy?

Increasing Fixed AssetsPaying of its debtPaying dividends

Non Financial Items

Corporate Responsibility

Marketing Campaigns

Customer Service

Comparison with Salada

Foods Jamaica

2010 2011 2012

Honey Bun 448.562798 560.847134 611.3332

Salada Foods 426.375 560.862 715.609

$50.00

$150.00

$250.00

$350.00

$450.00

$550.00

$650.00

$750.00

Revenues for Honey Bun and Salada Foods

2010 2011 2012

Salada Foods 0.4 0.42 0.44

Honey Bun 0.39 0.35 0.46

3%

8%

13%

18%

23%

28%

33%

38%

43%

48%

Gross Margin for Honey Bun and Salada Foods

2010 2011 20120.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Net Profit Margin

Honey Bunsalada Foods

Earnings Per Share of Both Companies

Honey Bun Limited

Salada Food Jamaica

2010 $0.23 $0.78

2011 $0.34 $0.69

2012 $0.44 $1.43

The better Investment Decision

would be?

Thank you from the Honey Bun

Team.