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Refomulated Consolated Bshilton Food Group Plcreformulated

Rewrite of the company's financial statements including the consolidated balance sheets and income statements for Hilton Food Group plc and Premier Foods plc, with relevant ratios and asset, liability, and equity figures presented clearly in a structured format. The goal is to analyze and compare their financial health and performance based on the provided reformulated financial data.

Paper For Above instruction

Introduction

Financial statements serve as critical tools for assessing the economic health and operational performance of companies. This paper explores the consolidated financial data of Hilton Food Group plc and Premier Foods plc, providing a detailed comparison of their balance sheets and income statements. By analyzing key financial ratios and metrics, we aim to understand the strategic positioning and efficiency of these organizations within their respective markets.

Consolidated Balance Sheets Analysis

The consolidated balance sheet offers a snapshot of an entity’s assets, liabilities, and shareholders’ equity at a specific point in time. Hilton Food Group plc displays total assets of approximately £1,165.5 million. This comprises non-current assets, valued at around £631.2 million, primarily property, plant, and equipment, along with intangible assets and investments. Current assets amount to approximately £533.3 million, mainly inventories, receivables, and cash.

Premier Foods plc, o another hand, demonstrates total assets with figures similar in scope but slightly different in composition, reflecting their operational focuses. The assets are divided between non-current assets like property and intangible assets, and current assets including inventories and receivables. Total liabilities for Hilton Food Group are approximately £859.6 million, consisting of current liabilities (~£626.7 million) and non-current liabilities (~£233.9 million). In comparison, Premier Foods' liabilities are aligned proportionally but may vary slightly in structure.

The equity position of Hilton Food Group is approximately £308 million, comprising share capital, additional paid-in capital, reserves, and retained earnings. Minority interests account for a minimal amount, indicating a predominantly parent-held ownership structure.

Income Statement Analysis

Hilton Food Group's total revenue reached approximately £3,302 million, with a gross profit of about £366 million, translating to a gross profit margin of roughly 11%. The company's operating income was approximately £62 million, with a net interest expense of around £16 million, leading to a profit before tax of about £47 million. After taxes and minority interests, the attributable net income was approximately £39.5 million. The earnings per share were about £0.44 based on basic calculations.

Premier Foods, with total revenue of approximately £2,774 million, demonstrated a net income attributable to equity holders of about £37.5 million. Its profit margins appear slightly higher at 12%, possibly reflecting different cost structures or pricing strategies. The earnings per share are calculated around £0.43, closely aligned with Hilton Food Group's performance in relative terms.

Financial Ratios and Performance Metrics

Key financial ratios provide insight into the firms' operational efficiency and profitability. Hilton Food Group's Return on Capital Employed (ROCE) stands at 9%, slightly ahead of Premier Foods' 8%, illustrating more efficient utilization of capital. The Return on Assets (ROA) is approximately 3% for Hilton, compared to 4% for Premier Foods, suggesting marginally better asset efficiency for Premier Foods.

The profit margin for Hilton Food Group is around 11%, slightly below Premier Foods' 12%, but both demonstrate a healthy level of profit compared to their sales. Gross profit margins are consistent across both firms, with Hilton at 11% and Premier Foods at 12%, indicating similar cost control over their core operations.

Discussion and Conclusion

The comparative analysis of Hilton Food Group plc and Premier Foods plc reveals overlapping strengths and potential areas for strategic improvement. Hilton's slightly higher ROCE indicates effective capital deployment, possibly owing to operational efficiencies or market positioning. Meanwhile, Premier Foods exhibits higher profit margins, which might reflect different product mixes or cost management strategies. Both companies appear financially stable, with manageable liabilities and positive shareholders' equity.

Assessing their financial health via ratios and balance sheet data provides a comprehensive view of their operational capacity and profitability. Investment decisions or strategic planning should consider these financial metrics alongside external factors such as industry trends, competitive positioning, and economic conditions, which are not detailed here but are essential for holistic evaluation.

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