Unilever Pakistan Foods Limited
Unilever Pakistan Foods Limited
Unilever Pakistan Foods Limited
LIMITED
Analysis of Financial Statements and Reporting
FINAL PROJECT
Group members:
Danyal Kamal
Eman Shafiq
Executive Summary
Founded in 1948
Engages in the manufacture and selling of
consumer and commercial food products under
the brand names of Rafhan, Knorr, Energile,
Glaxose-D etc.
Deals in home and personal care products
Market share: 40%
Parent company: Unilever PLC
Financial performance analyzed from 2017-2022
Competitor analysis with local/international
brands
Common size statement of P/L
• Profits after taxation figures increased significantly for 2020, 2021, and 2022
• The cost of sales has fluctuated a little from 42% to 45%.
• Distribution costs have decreased since 2017.
• Over all company is handling its operations pretty well causing lower fluctuation in the
company's annual profit and loss.
Common-size Statement of financial position
• Cash balance of the company decreased from 2018 to 2019 but then
increases from 2020(12%) to 2021(32%) but sharp decrease in
2022(13%).
• Share capital of the company has not even changed the slightest bit in
the past six years.
• Company's non-current assets have increased by more than 100% in the
past six years.
Trend Analysis - Statement of P/L
Administrative and other operating costs have doubled for 2021 to 2022.
The cost of sales has not changed in a very big proportion as in 2017 it was
44.98% and in 2022 it was 42.21%
Cash Flow analysis
1.40
0.40
0.20
0.00
2022 2021 2020 2019 2018 2017
Capital Structure and Solvency
Financial leverage ratio lnterest cover ratio
0.35 800.00
0.30 700.00
0.25 600.00
1,200.00
1,000.00
600.00
400.00
200.00
0.00
2022 2021 2020 2019 2018 2017
Inventory turnover shows a decreasing trend of inventory turnover till 2021. Later, in 2022
it increased to 47.
Debtor’s turnover ratio has shown a fluctuating trend in the past few years. It has been
increasing till 2020. Later it decreased leading to 10 in 2022. It is a ratio that analyses the
measure of a company’s ability to collect cash. The company’s turnover ratio decreased in
2021 however it was able to increase its ratio in 2022.
The creditor turnover ratio has been on almost the same trend for the past six years. The
creditor’s turnover ratio is a measure of how often a particular company pays off its debts
to suppliers within a given accounting period.
The total asset turnover ratio has been decreasing for the past few years. It helps investors
understand how effectively companies are using their assets to generate sales. Company
assets have been increasing in the past few years, more increase compared to increase in
sales. This explains the decrease in the total asset turnover ratio.
Competitor analysis – Profitability and
45
liquidity
40
35
30
25
gross profit
20 ebitda margin
15
10
5
0
1.4
unilever nestle national
1.2
0.8
current ratio
0.6 acid test ratio
0.4
0.2
0
unilever nestle national
Competitor analysis – Operating
performance and EPS
100
90
80
70
60
50 inventory turnover
asset turnover
40
30
20
10
0
unilever nestle national
earnings per share
1400
efficient) 1000
demand 400
200
0
unilever nestle national
Debt-Equity
debt-equity
10
9
8
7
6 debt-equity
5
4
3
2
1
0
unilever nestle national