Analysis of Financial Performance of Pz Cussons 2012
ANALYSIS OF THE FINANCIAL PERFORMANCE OF PZ CUSSONS PLC AND
RESEARCH MATRIX
Background Information of the Company
PZ Cussons Plc. is a UK based consumer products group. The principal activities of the group are the manufacture and distribution of soaps, detergents, toiletries, beauty products, pharmaceuticals, edible oils, fats, electrical goods and nutritional products. The company’s products can therefore be categorised into personal care, home care, baby care, beauty products, food and nutrition and electrical goods. They have supply chain and distribution networks in Africa, Asia and Europe. Their mission is to enhance the lives of customers with quality, value and innovation. Their vision is to be a growing and dynamic company who are passionate about their leading brands and drive innovation in everything they do.
The company has four major strategies which are operating in selected categories where their brands have a strategic advantage and offering growth opportunities which are profitable; operating in selected geographies either through their own infrastructure or through partnership; operating a flexible and evolving supply chain designed to service their categories and working with people who share their unique CAN DO values. The company’s major competitors are Mcbride Plc., Kao UK Ltd, Creightons Plc., and Swallowfield Plc. (Marketline, 2012).
Interpretation of Financial Statements Using Ratio Analysis
Profitability Ratios
These ratios measure the ability of a company to generate earnings in relation to its sales, assets and equity (Ready Ratios, 2012). 2012 2011
Return on Capital Employed 49.6 = 8.16% 107.3 =16.43%
(PBIT/Total Assets-Current liabilities) 930.5 - 322.4 938.5 - 285.6
Return on Equity (ROE)
RESEARCH MATRIX
Background Information of the Company
PZ Cussons Plc. is a UK based consumer products group. The principal activities of the group are the manufacture and distribution of soaps, detergents, toiletries, beauty products, pharmaceuticals, edible oils, fats, electrical goods and nutritional products. The company’s products can therefore be categorised into personal care, home care, baby care, beauty products, food and nutrition and electrical goods. They have supply chain and distribution networks in Africa, Asia and Europe. Their mission is to enhance the lives of customers with quality, value and innovation. Their vision is to be a growing and dynamic company who are passionate about their leading brands and drive innovation in everything they do.
The company has four major strategies which are operating in selected categories where their brands have a strategic advantage and offering growth opportunities which are profitable; operating in selected geographies either through their own infrastructure or through partnership; operating a flexible and evolving supply chain designed to service their categories and working with people who share their unique CAN DO values. The company’s major competitors are Mcbride Plc., Kao UK Ltd, Creightons Plc., and Swallowfield Plc. (Marketline, 2012).
Interpretation of Financial Statements Using Ratio Analysis
Profitability Ratios
These ratios measure the ability of a company to generate earnings in relation to its sales, assets and equity (Ready Ratios, 2012). 2012 2011
Return on Capital Employed 49.6 = 8.16% 107.3 =16.43%
(PBIT/Total Assets-Current liabilities) 930.5 - 322.4 938.5 - 285.6
Return on Equity (ROE)
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