...Sri Lanka | Beverage, Food & Tobacco Initiation of coverage EQUITY RESEARCH 19 December 2013 Cargills (Ceylon) PLC (CARG.N0000) A consumption play Cargills (Ceylon) PLC (CARG) is the largest organized food retailer by market capitalization listed on the Colombo Stock Exchange (CSE), and also manufactures a range of fast-moving consumer goods (FMCG) and operates a fast-food chain. The company is majority owned by its parent company CT Holdings PLC (CTHR), itself one of the largest traded conglomerates on the CSE. We expect the typical signs of consumption growth, such as rising GDP and private consumption expenditure, to support CARG’s revenue growth, at an 11.3% CAGR over FY14E-FY16E. We also forecast CARG’s EBIT margin to expand to 4.3% in FY16E from 4.1% in FY13. Margin development across all segments is likely to be tempered by persisting high operating costs, particularly electricity and fuel expenses, as well as currently underwhelming results from the brewery and biscuits businesses. CARG’s debt and gearing levels in the past three years have risen due to a string of acquisitions and investments to expand capacity of several product lines. Our SOTP and P/E analyses yield a valuation range of LKR110-149, compared with the share price of LKR149 as of 18 December 2013. We forecast revenue to post an 11.3% CAGR over FY14E-FY16E as consumption levels are set to improve. CARG’s revenue is likely to be driven by its retail segment, which we forecast to also grow at an 11.2% CAGR...
Words: 13320 - Pages: 54
...Sri Lanka | Diversified Holdings Initiation of coverage EQUITY RESEARCH 5 September 2013 CT Holdings PLC (CTHR) Cashing in on consumption growth CT Holdings (CTHR) is the fourth-largest Sri Lankan diversified company by market capitalization. The company holds controlling interests in Cargills (CSE ticker: CARG, CTHR’s 70%-owned food retail company), the country’s largest chain of supermarkets, as well as in several companies in the food processing, restaurant, real estate, entertainment and financial services sectors. We expect CTHR’s revenues from continuing operations to post an 11.1% CAGR over FY14E-FY16E and net margin to expand 40bps to 2.3% by FY16E. Rising disposable income should continue to boost consumer demand and benefit Sri Lanka’s modern food retail market, driving CTHR’s retail and wholesale distribution segment (84% of revenue in FY13) at an 8.8% CAGR over FY14EFY16E. We expect margins to benefit from higher food sales and economies of scale in food processing. However, high finance costs resulting from CTHR’s recent spate of acquisitions may pressure earnings. We arrive at a valuation range of LKR126-153 for CTHR, compared with the current share price of LKR140, as at 4 September 2013. Sri Lanka’s organized food retail penetration grew to 15% in 2012 from 10% in 2004. This growth was supported by rising disposable income (12.6% CAGR over 2010-2012) and a slowly increasing preference for shopping at modern retail outlets. However, penetration remains lower...
Words: 19574 - Pages: 79
...slavery? I think the answer varies in culture to culture. But in my opinion, there is no way to acceptchild slavery. Children are kidnapped, sold and forced into harvesting. Farmers are beatingthem. From may point of view, children should not be used for labor. They should have aright to choose their lifestyle. They should have education and then contribute the country’seconomy and welfare. Regardless of the society one may live in, I think child labor isabsolutely wrong. 3. Who shares in the moral responsibility for the slavery occurring in the chocolateindustry: African farmers? African governments? American chocolate companies likeHershey, Mars, Nestle and Kraft foods? Distributors like Archer Daniels Midland Co.,Barry Callebaut, and Cargill Inc? Consumers like you and I who know about thesituation but continue to purchase tainted chocolate? I believe, African Farmers, African governments, American chocolate companies,distributors, consumers and people who know the situation, shares in the moral responsibilityfor the slavery occurring in the chocolate industry. African farmers use child slavery labor.African government do not control over the rules. Middlemen buys cocoa beans from farmerswho use slavery labor. American chocolate companies know farmers use slavery labor andthey continue to work them. If we know the company names and continue to buy chocolatefrom them, we are also morally responsible for the child slavery labor. As a result, all actorsin the industry are...
Words: 264 - Pages: 2
.................................................................................................................... 3 Riscurilor Operaționale cu care se Confrunta Compania (Anca Voinea)............................. 5 A. Riscurile Operaționale Cargill Agricultura ............................................................................... 6 B. Riscurile Operaționale Cargill Industrie .................................................................................10 C. Riscurile Operaționale Cargill Management Financiar și de Risc: ........................................13 D. Riscurile Operaționale Cargill Pharma & Îngrijire Personală ................................................13 E. Riscurile Operaționale Cargill Cercetare și Dezvoltare..........................................................14 3. Matricea Riscurilor Companiei Cargill Inc. (Claudia Ioana Toma) ...................................15 A. Terminologia de Risc Utilizată ...............................................................................................15 B. Matricea Riscurilor .................................................................................................................16 C. Tabelul ce stă la baza matricei riscurilor pentru compania Cargill ........................................17 4. 5. Harta de interconectare a riscurilor (Andreea Voicu) .........................................................22 Măsuri de Acoperire a Riscurilor (Titavu Alexandra Ioana Olimpia Diana Tufeanu)...
Words: 13707 - Pages: 55
...Analysis Of Jaykay Marketing Services Marketing Essay The supermarket industry in Sri Lanka is set out for an explosive growth in the recent years this is with the western lifestyle of modern Sri Lankans where convenience is a key benefit sought after.(Perera 2006) The traditional grocery store concept has been evolving in to a ‘’Mega Stores’’ and the heavy discounter concept which carry all the goods shoppers want (Stanton 2007). If we look at the drivers for the evolution of modern supply chains, or ‘’Modern Trade’’ they have been persistent in increase demand for value added consumer products, convenience food, beverage, and frozen confectioneries. ‘’The emergence of supermarkets, urbanization, income increase, high quality retail export markets, high quality bulk procurement, trade agreements, with other countries, increased migration of Sri Lankan citizens and increased female participation in labor force have created a new demand pattern, shifting the focus towards continuous supply of high quality, value added products with improved processing, packaging and labeling’’ (Samarthuga A 2006 15). Sri Lanka is an agriculture base country primarily it has 2 million hectares or 30% agricultural land, and almost 75% of the agricultural land is under small holdings and the balance is under estates. Sri Lanka Imports 65000 MT of diary commodities mainly FCMP and diary therefore seen and instrument to replace, and about 70% of the contribution to the livestock subsector comes from...
Words: 4225 - Pages: 17
...Group Assignment Cargills Super Market Group Members Name : K. K. R. A. Prematilake (09148205) : D. M. Warnasooriya (09148159) : P.M. Alagiyawadu (09152130) : P. D. Priyadarshika (09148221) : T.R. Thotamune (09148175) : S.N. Fernando (09151168) : H.L. Liyanage (09151150) : S.K. Wirthamulla(09153551) Subject Name : Business Policy Batch Number : 13 BSc in M I S Executive Summary Cargills (Ceylon) PLC is one of the foremost and the largest retail chain in Sri Lanka with having over 150 outlets widen transversely the island covering 20 districts, counting Cargills Big City hypermarkets, Cargills Food City supermarkets and Cargills Express convenience stores. Today Cargills is the leader in the food and beverages sector and is ranked among the top 10 companies in Sri Lanka with over 4,600 employees. Supermarket industry is one of the high competitive industries in Sri Lanka. Within this assignment we analyzed the internal and external factors that affected to Cargills and generate strategies which help to gain competitive advantage among competitors. In this Assignment we concern about SWOT analysis and TOWS matrix. According to those analyses we develop corporate, business and functional strategies to Cargills which help to achieve its vision Contents Executive Summary 2 Our Business 4 Overview of the Industry 5 Organization Vision, Mission and Objectives 7 Vision 7 Mission 7 Objectives 7 SWOT Analysis 8 Strengths 8 Weaknesses...
Words: 3073 - Pages: 13
...Case study 2 Sri Lanka Cargills Ceylon Ltd Total cost: Financier Year of initiation: NA Private company 2001 2010-2015, Possible partner under the IFAD-supported National Agribusiness Development Programme (NADeP) Relational chain, buyer-driven Value chain approach: Background. Cargills Ceylon Ltd (Cargills) is a supermarket chain called Food City in Sri Lanka. It has improved the efficiency of its operations by purchasing directly from producers, increasing the efficiency in the chain, thereby increasing its own income as well as the price paid to smallholders. Its intervention in the passion fruit chain provides an example of how Cargills improved the efficiency of the chain resulting in considerable benefits to the producers and increased sales of passion fruit through its retail outlets. In a normal fruit and vegetable chain in Sri Lanka (see Figure 11) there are many actors who usually tend to act in their best interests rather than operating as a coordinated chain, resulting in high operating costs. Some 30% of the market value accrues to the middlemen, post-harvest losses amount to about 40% and only around 30% of the final value accrues to the producer. Figure 1: Conventional supply chain for fruits and vegetables (SL/kg) In the generic chain there are many problems. Usually low quality planting material is used. In addition, premature harvesting and poor post-harvest practices contribute to inferior product quality entering the markets. Fresh produce is traditionally...
Words: 1253 - Pages: 6
... Also, the Renewable Fuel Standard (RFS) mandates that renewable biofuels comprise a certain minimum amount of the U.S. fuel supply. Fuel blended with up to 10% ethanol is approved for use by major motor vehicle manufacturers and is often recommended as a result of ethanol’s clean burning characteristics (BioFuel Energy Corp. 10-K, pg. 5). BioFuel has various unique accounting methods such as revenue recognition and inventory valuation, due to changes in commodity prices and BioFuel’s exclusive buyer-seller relationship with Cargill. One of BioFuel’s unique accounting methods is revenue recognition. Revenue is recognized by BioFuel when the risk of loss and title transfers upon the delivery of the ethanol and distillers grain to Cargill, BioFuel’s sole purchaser of its ethanol and distillers grain products. BioFuel’s revenue is recorded based on the amounts payable from Cargill to BioFuel at the time of sale. The amount payable from Cargill for ethanol is equal to the average delivered price per gallon received by the marketing pool from Cargill’s customers, less the...
Words: 1147 - Pages: 5
...misconception that family firms are simply "mom and pop shops." Although it is clear that family businesses are capable of incredible widespread success, exactly why this is the case is far less obvious. One way to gain some valuable insight into how and why so many effective family businesses exist is to closely examine the three in our nation that have had the most success: Cargill, Ford Motors, and Wal-Mart. In many ways, these businesses could not be more different; for instance, they operate in separate industries, and the levels and types of family involvement in the firms vary. Extensive analysis of these three corporations did, however, reveal that while no family, business, or family business is perfect, each company's achievements are directly attributable to its commitment to the common vision and identity instilled in the firm by the family. Cargill Cargill is a private corporation that works with "farmers, customers, governments and communities" to provide "food, agriculture, financial and industrial products and services to the world ("Cargill: Provider of Food…"). Believe it or not, Cargill is as broad of a company as it makes itself sound. Founded in 1865 as a grain storage facility, the company no longer specializes in delivering any one specific product or service. Instead, through elements such as massive economies of scale and efficient and far-reaching distribution networks, this family firm is able to provide high...
Words: 3063 - Pages: 13
...Finance Associate: Full Time 2015-UNI03409 Working at Cargill is an opportunity to thrive—a place to develop your career to the fullest while engaging in meaningful work that makes a positive impact around the globe. You will be proud to work for a company with a strong history of ethics and a purpose of nourishing people. We offer a diverse, supportive environment where you will grow personally and professionally as you learn from some of the most talented people in your field. With nearly 150 years of experience Cargill provides food, agriculture, financial and industrial products and services to the world. We have 143,000 employees in 67 countries who are committed to feeding the world in a responsible way, reducing environmental impact and improving the communities where we live and work. Learn more at www.cargill.com.Description Position Objective: Think about a career where you get to be a key player in safeguarding Cargill's assets and contributing to the company's profitability. Your career path could take you to a special project on the implementation of a new technology or working on cross-functional international teams. A career in accounting at Cargill means you get to be a business partner to help Cargill reach its strategic initiatives. Choosing a career at Cargill means you are on the fast-track to success! Principal Accountabilities: * Apply finance and accounting skills by participating in cross-functional teams within your department. * Provide analysis...
Words: 646 - Pages: 3
...Management Functions in Application Amy Wilson Denise Harrison Ashford University MGT 330 4/26/2015 Introduction Management practices are those methods which provide an effective way of achieving the organizational goals. This is coupled with the maximum utilization of the available resources, as well as the minimization of the costs as much as possible. In every organization, there are those costs which are extremely important, and this may not be avoided. The cuts are implementented on the aspects which would not have a significant effect on the organization. The main reason why organizations get into business is to make profits. This is the reason why costs are kept as low as possible since in that case, the profit margin is increased (Baack, Reilly & Minnick, 2014). The Functions of Management There are several managerial functions. Nonetheless, most of them can be categorized into five. These include the planning, organization of resources and related aspects, staffing, coordination, as well as control. The whole essence is to create a framework where the employees find it easy to exploit the resources. The arrangement has to be in such a manner than the employees are motivated. This makes it easy for the organization to achieve its goals Effective leadership and management involves finding solutions to the emergent problems and challenges, motivating the employees, as well as ensuring the goals and objectives of the organization are achieved as much...
Words: 1510 - Pages: 7
...Humans usually contract salmonella from contaminated food; it is most common among poultry but can taint almost any food type. Some outbreaks have included the bacteria found in raw eggs, raw meat (ground beef and other poorly cooked meats), egg products, fresh vegetables, nuts, and contaminated water. Salmonella can enter water in a bowel movement of an infected human or animal through sewage overflows, sewage systems that are not working properly, or wells after severe flooding. Infected milk is another possibility of infection, but pasteurization usually destroys the germ. A recent major outbreak in July of 2012 by Cargill meat solutions Corporation was found in over 29,000 pounds of fresh ground beef products. A total of 46 people in 9 states were reported to have contracted the virus, thankfully no deaths were reported. Although the recall is over Cargill encourages consumers who purchased these products with sell by dates of May 29 to June 16th of this year to dispose of their purchases. Symptoms can begin about eight to 48 hours after consumption of the bacteria and can last anywhere between 4 and 7 days. Salmonellosis (gastroenteritis) is a common source of bacterial food poisoning that can be described by nausea, vomiting, and diarrhea. It is the most common disease triggered by the organisms. In some cases blood may be present in the...
Words: 564 - Pages: 3
...Strategic Objective being met Alternate Options Considered Advantages and Disadvantages |Tax Rate | |WACC (Weighted Average Cost of Capital) | |Forex (INR to USD) | |Standard Hurdle Rate (Must exceed this rate) | |Strategic Initiative Hurdle Rate (Must exceed this rate) | |High Risk Hurdle Rate (Risk Score b/t 4 -5) | |The expected life of the initiative or project | |The initiative or project independent of other projects/initiatives or is it dependent? | |Cost level for flagging high risk/high return project as candidates for pilots | |Does the initiative or project involve new and technology (candidate for a pilot)? | |Window of opportunity | |Implementation time | Financial Benefits Originating Cost Ongoing Costs Depreciation ...
Words: 274 - Pages: 2
...Law 252 Business Torts — Week One Course Reading Assignment 1 Part One: The "borderland" between tort and contract. Sommer v, Federal Signal Corp., 79 N.Y.2d 540 (1992); IKEA North American Services, Inc. v. Northeast Graphics, Inc., 56 F.Supp.2d 340 (S.D.N.Y. 1999). Part Two: Introduction to the economic loss doctrine. Grams v. Milk Products, Inc., 283 Wis.2d 511 (2005). ' I have edited the cases in this attachment. Le • ' 593 N.E.2d 1365 79 N.Y.2d 540, 593 N.E.2d 1365, 583 N.Y.S2d 957 • (Cite as: 79 N.Y.2d 540, 593 N.E.2d 1365, 583 N.Y.S.2d 957) Page I .'Sommer v. Federal Signal Corp. N.Y.,1992. Court of Appeals of New York. Beverly SOMMER et al., Respondents-Appellants, v. FEDERAL SIGNAL CORPORATION et Respondents-Appellants, andHohnes Protection, Inc., Appellant-Respondent, et al, Defendant (And a Third-Party Action and All Related Consolidated Actions.) May 12,1992. OPINION OF THE COURT KAYE, Judge. substitute-initially understood that 810 wanted normal service restored. But as the brief conversation proceeded, the dispatcher became confused by the caller's repeated insistence that he would "activate" the system and the dispatcher concluded-without attempting to elicit greater clarification from the caller, or any other confirmation-that 810 wanted its system taken out ofservice. Seven to nine minutes later, Holmes began receiving fire signals from the building. However, consistent with his mistaken impression that the system was to be taken out...
Words: 9531 - Pages: 39
...controls the regulation. Explain why this agency and your proposed regulation interest you (briefly). How will this proposed regulation affect you or the business in which you are working? Provide the URL to the website where the regulation change proposal is located. (Check your URL to be sure it takes the reader to the actual regulation). (10 points) The FDA or also known as the Food and Drug Administration are agencies that control the rules and regulations. I decided to used this agency as my reference because the FDA is one the most popular and important agency. This proposed regulation change who filed this petition with the FDA to amend their rule is Cargill. Scientist and researchers in Cargill research and development laboratories and engineering departments have worked on this project for a number of years. If Cargill plant expansion to produce their product on that specific location, this would bring a positive economic impact to that location, only if the rules by the FDA become permanent. 2. Describe the proposal/change. (10 points) According to the FDA Summary, “amending the health claim regulation entitled ‘Soluble fiber from certain foods and risk of coronary heart disease (CHD)’ to add barley beta fiber as an additional eligible source of beta-glucan soluble fiber.” The FDA has come to the agreement that there is an important scientific agreement in the public domain to support this claim. At the present time, certain whole oat and whole grain barley products...
Words: 752 - Pages: 4
