Dairy Farm Case

Dairy Farm Case

Guideline Solution
(Note: This is not intended as a “model answer” but is more of a teaching note to identify some of the key issues)

As a strategic analyst working for M&S you are asked to assess the performance of Dairy Farm.
Carry out a CORE analysis of Dairy Farm
 Briefly consider context

 Briefly take an overview of the company
 Work out ratios
 How does the company compare to M&S?

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Dairy farm
Annual accounts for year ending
December………….
2011

2012
No of Weeks
Dairy farm

US$m

US$m

Income statement
Turnover
Cost of Sales
Gross Profit
Other income
Operational Expenses
Operating Profit before Other items
Other items
Operating Profit
Interest Payable
Interest Receivable
Net Interest payable
Profit before tax
Tax

9,801
-6,971
2,830
148
-2,494
484
63
547
-14
3

9,134
-6,452
2,682
133
-2,280
535
66
601
-21
4

-11
536
-83

-17
584
-99

Profit after tax
Share of Profit(-)/Loss(+) Attributable to
Minorities

453

485

-3

0

Profit attributable to equity holders of the Parent

450

485

3,850
698
324
1,350
33.0
23
191

2011
3,539
730
214
1,350
35.9
21
181

Dairy Farm
Other data
Total assets US$m
Net Cash Flow from operating activities US$m
Capital expenditure US$m
No of Shares (million)
Published eps (cents)
Dividends (cents per share)
Depreciation and Amortisation US$m

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2012

Dairy Farm

2,012
US$m

Balance Sheet as at end December ………..

2,011
US$m

Non-current Assets
Total Non-current Assets

2,010

1,594

Current Assets
Inventories
Trade Receivables
Cash
Othe CA
Current Assets

958
65
667
150

Short term debt
Trade payables
Other
Current Liabilities

-56
-1,558
-776

949
76
730
190

1,840

1,945

Current Liabilities
-130
-1472
-755.0

-2,390
-550
1,460

Net Current Assets (-Liabilities)
Total assets less current liabilities

-2,357
-412