Analysis of Taste Holdings Ltd
Du Pont Analysis of Taste Holdings Limited:
Inputs:
Feb 2013 Feb 2012
Revenue: 506 431 304 264
Net profit 24 775 21 071
(attributable to the parent)
Total Assets 369 667 341 365
Total Equity 189 246 171 840
(attributable to the parent)
*Assumption: RoE will be calculated using the profit and equity attributable to the equity holders of the parent (hence excluding NCI)
2013 2012
Efficiency (revenue/TA) 1.370 0.891
Profitability (NP/Revenue) 4.892% 6.925%
Leverage (TA/Equity) 1.953 1.987
RoE 13.09% 12.26%
*Rounding done to 3 decimal places
Introduction:
Whilst the global recession has passed, its impact continued to be felt and countries were slow to recover. As with many consumers globally, South Africans continued to experience the affects of the recession and their spending on consumer foodservice remained constrained. However, consumer foodservice continued to achieve steady current value growth boosted by the middle to upper LSM groups (living standards measure). Rising prices also contributed to increased value growth during the review period. With decreased disposable income, there is greater competition within South African consumer foodservice for ‘share of throat’. Despite economic pressures and the impact of the National Credit Act slowing down the growth of franchisees in South Africa, constant value growth will remain steady over the forecast period as the economy recovers. Service excellence is one the most important proponents for the brand of South Africa. In the highly competitive hospitality industry, service excellence goes a long way towards building the brand and reputation of a product. Taste Holdings Limited is driven towards investing in franchises that offer sustainable and compelling brands that differentiate its service from that of its
Inputs:
Feb 2013 Feb 2012
Revenue: 506 431 304 264
Net profit 24 775 21 071
(attributable to the parent)
Total Assets 369 667 341 365
Total Equity 189 246 171 840
(attributable to the parent)
*Assumption: RoE will be calculated using the profit and equity attributable to the equity holders of the parent (hence excluding NCI)
2013 2012
Efficiency (revenue/TA) 1.370 0.891
Profitability (NP/Revenue) 4.892% 6.925%
Leverage (TA/Equity) 1.953 1.987
RoE 13.09% 12.26%
*Rounding done to 3 decimal places
Introduction:
Whilst the global recession has passed, its impact continued to be felt and countries were slow to recover. As with many consumers globally, South Africans continued to experience the affects of the recession and their spending on consumer foodservice remained constrained. However, consumer foodservice continued to achieve steady current value growth boosted by the middle to upper LSM groups (living standards measure). Rising prices also contributed to increased value growth during the review period. With decreased disposable income, there is greater competition within South African consumer foodservice for ‘share of throat’. Despite economic pressures and the impact of the National Credit Act slowing down the growth of franchisees in South Africa, constant value growth will remain steady over the forecast period as the economy recovers. Service excellence is one the most important proponents for the brand of South Africa. In the highly competitive hospitality industry, service excellence goes a long way towards building the brand and reputation of a product. Taste Holdings Limited is driven towards investing in franchises that offer sustainable and compelling brands that differentiate its service from that of its