...2011 Dean Foods vs. Dutch Lady Milk Industries The dairy industry will be our point of interest as we look at two very different companies in two different countries. Dean Foods is located within the United States, and Dutch Lady is located in Malaysia. This analysis will look at both sets of financial statements for 2009 and see how they compare. There will be many different variables that will play into how these financial statements measure up to each other. Dean Foods production began in 1976 and is part of a larger organization called Fresh Dairy Direct-Morningstar. We will only be looking at the financial statements for Dean Foods out of this organization. Dutch Lady's incorporation began in 1963 and is also a part of a larger organization called Royal Friesland Campina. With this organization we will only be looking at the financial statements for Dutch Lady. By taking two dairy organizations that are small parts of larger corporations, it might seem to make the companies appear to be more of an "apples to apples" comparison. The two companies that we are looking at in 2009 are both publicly traded on the stock market. Dean Foods can be found on the New York Stock Exchange, while Dutch Lady would be found on Bursa Malaysia, the local stock exchange in Malaysia. (www.dutchlady.com.my) As we look at the stock market data from 2009, we learn some interesting facts about both of these companies. If one examines the past five years for both companies on this...
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...Deans Foods Company, NYSE: DF Securities Analysis Professor: Paul Tovbin Keller University By: Roy Gavra 12/14/2012 Table of content The background of Deans Foods Company with a life cycle analysis……………..…………….3 Return on Equity……………………………………………………………………………….…4 Deans Foods Company projected future growth rate of earnings…………………………………5 An analysis of its required rate of return using the CAPM measurement………………………...5 Deans Foods Company intrinsic value using the discount valuation techniques…………………6 Refernces………………………………………………………………………………………….7 The background of Deans Foods Company with a life cycle analysis According to Reuters Dean Foods Company, incorporated in 1994. The stock is traded in the New York Stock Exchange (NYSE) under the symbol DF. As of December 14th 2012 the stock value is $16.46. The company is a food and beverage company. Dean Foods Company operates through two segments: Fresh Dairy Direct-Morningstar and WhiteWave-Alpro. Dean Foods Fresh Dairy segment is domestically processor and distributor of dairy products, the company sells its products through over 50 local and regional brands. Also, the company sells it product under range of private labels. The WhiteWave-Alpro segments emphasis Soy based products, the WhiteWave-Alpro very active in the International markets as well. When assessing the company life cycle stage will look on the industry and on the company performance. The recession proof industry is it in Maturity stage, with...
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...Dean Foods Company Symbol: DF Exchange: NYSE Industry: Food - Diary Products SIC Code: 2026 Current Price: $14.76 52-Week Range: $13.59 -$22.96 I. Company Description Dean Foods Company is a food and beverage firm that processes, manufactures, markets, and distributes dairy products in the United States. Their products include fluid milk, ice cream, cultured dairy items, creamers, and ice cream mix, among others. It is currently the nation’s largest processor and direct-to-store distributor of fluid milk. In addition, the company produces and distributes juices, teas, and bottled water. Headquartered in Dallas, Texas, Dean Foods was founded in 1925 and was later incorporated in 1994. The company offers its products under approximately 50 local and regional proprietary or licensed brands and private labels, including TruMoo, Alta Dena, Berkeley Farms, Country Fresh, Deans, Garelick Farms, Land O’Lakes, Lehigh Valley Dairy Farms, Mayfield, McArthur, Meadow Gold, Oak Farms, PET, T.G.Lee, and Tuscan. The company sells its products to retailers, food service outlets, distributors, educational institutions, and governmental entities. II. Comparable Firms The following are the comparable firms selected for relative valuation. Saputo Inc. (SAPIF) Saputo Inc. (SAPIF) produces, markets, and distributes various dairy products in the United States, Canada, and South America. Their product...
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...DEAN FOODS I- Measuring Riskfree Rate Companies in the USA: Treasury Bill Rate analysis and government bond rate for long term analysis Rj=Rf+βRm-Rf β=0.91 Rf=10 year US Treasury rate the risk free rate=0.039 Rm= 0.028 1. Rj=0.039+0.910.028-0.039=0.02899 or 28.99 % II- Risk Regression A. How well or badly did your stock do, relative to the market, during the period of the regression? Intercept-Riskfree Raten1-β=Jensen'sAlpha Dean Food: Monthly: -0.004-0.00325601-0.91=-0.00401 Annually: -0.004-0.039601-0.91=-0.004059 B. What proportion of the risk in your stock is attributable to the market? What proportion is firm-specific? R2 of Regression=0.6745 or 67,45% suggests that 67,45% of the risk in Dean Food comes from market sources and that the balance of 32.55% come from firm-specific components Firm-specific=1-0.6745=0.3255 C. Annualize the required return on your stock. Riskless Rate+β×Risk Premium Rj=0.039+0.915%=0.0845 Or 8.45% III- Estimating a Bottom up Beta Bottom-up unlevered beta=Current beta1+1-tax rateAverage debtEquity Tax US = 35 % Beta = 0.91 Deb/Equity = 0.53 Bottom-up unlevered Beta = 0.911+1-35%0.53 = 1.04 IV- Estimating a Cost of Debt An interest coverage ratio EBITInterest Expense=13,734,0003,058,000,000 = 4.49 A synthetic rating for Dean Foods 4.25 < 4.49 < 5 therefore rating is A C.A pre-tax cost of debt for your firm Dean Food’s...
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...Chapter 1 Managerial Accounting and the Business Environment Solutions to Questions 1-1 Managerial accounting is concerned with providing information to managers for use within the organization. Financial accounting is concerned with providing information to stockholders, creditors, and others outside of the organization. 1-2 A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors. The focal point of a company’s strategy should be its target customers. 1-3 Customer value propositions fall into three broad categories—customer intimacy, operational excellence, and product leadership. A company with a customer intimacy strategy attempts to better understand and respond to its customers’ individual needs than its competitors. A company that adopts an operational excellence strategy attempts to deliver products faster, more conveniently, and at a lower price than its competitors. A company that has a product leadership strategy attempts to offer higher quality products than its competitors. 1-4 Managers carry out three major activities in an organization: planning, directing and motivating, and controlling. Planning involves establishing a basic strategy, selecting a course of action, and specifying how the action will be implemented. Directing and motivating involves mobilizing people to carry out plans and run routine operations. Controlling involves ensuring that the plan is actually carried out and is appropriately...
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...Managerial Accounting and the Business Environment Solutions to Questions 1-1 A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors. The focal point of a company’s strategy should be its target customers. 1-2 Customer value propositions fall into three broad categories—customer intimacy, operational excellence, and product leadership. A company with a customer intimacy strategy attempts to better understand and respond to its customers’ individual needs than its competitors. A company that adopts an operational excellence strategy attempts to deliver products faster, more conveniently, and at a lower price than its competitors. A company that has a product leadership strategy attempts to offer higher quality products than its competitors. 1-3 A person in a line position is directly involved in achieving the basic objectives of the organization. A person in a staff position provides services and assistance to other parts of the organization, but is not directly involved in achieving the basic objectives of the organization. 1-4 The Chief Financial Officer is responsible for providing timely and relevant data to support planning and control activities and for preparing financial statements for external users. 1-5 The three main categories of inventories in a manufacturing company are raw materials, work in process, and finished goods. 1-6 The five steps in the lean thinking model are: (1) identify value...
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...GAP Analysis: A technique that businesses use to determine what steps needed to be taken in order to move from its current state to its desired, future state. Also called need-gap analysis, needs analysis, and needs assessment. Gap analysis consists of (1) listing of characteristic factors (such as attributes, competencies, performance levels) of the present situation ("what is"), (2) listing factors needed to achieve future objectives ("what should be"), and then (3) highlighting the gaps that exist and need to be filled. Gap analysis forces a company to reflect on who it is and ask who they want to be in the future. Where is your company now? Burger King Holdings, Inc. was founded in 1953. Burger King is the world's number 2 hamburger chains after McDonalds. By the early 2000s Burger King is a little left behind. Years of under-investment left it struggling in its rival's shadow by the early2000s. Although a lot of consumers agree that it meals taste better than McDonald ones but it doesn't have the excellent perception created the administrative power and the aggressive marketing of his main by concurrent. It was freed in 2002 from Diageo the number one in wine and spirit drinks, which owned it since 1997, after a merger with Guinness. Although owned by Texas Pacific Group for US$2.26 billion, it recovered its latitudes of the sixties. The number 2 in hamburger fast food came back progressively in the fight with McDonalds. Since 2004 their performance constantly increased...
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...Consider 3 7 13 22 2 4 1 Ross Colbert, Global Strategist Beverages Mr. Colbert joined Rabobank in January 2011 and is responsible for developing FAR’s research portfolio and Rabobank’s global view toward the beverage sector. Rabobank’s FAR team provides information and analysis covering all of the major sectors throughout the food chain. The seven-member FAR Beverage team is part of Rabobank’s global FAR group, which is comprised of Rabobank s approximately 70 analysts around the world. Colbert joined Rabobank following an extensive career in the beverage industry. Most recently he was Managing Director of M&A Americas for Zenith International, which is one of the world’s leading consulting, market intelligence and financial advisory firms focused on the global food and beverage industry. Prior to that, he was Managing Director and Chief Operating Officer for eight years at Beverage Marketing Corporation, which provides market intelligence and financial advisory services to the global beverage industry. Over his career he has served as an advisor to Pepsico, Coca-Cola Enterprises, Heineken, Nestle Waters, Snapple Beverages, and Seagram's as well as many independent, private beverage companies. Additionally, he began his career at Coca-Cola Bottling of Miami, then moved to Beverage Canners International and Cadbury Schweppes. He has his undergraduate degree in political science from the University of Hawaii, and a Masters in Business Administration from the University...
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...smiled with the realization that, without intending to produce a SWOTi analysis, she had in fact organized her views about the Swiss film production company she had been working with into the familiar four categories. She was still not entirely convinced that she had made the right decision a few minutes earlier on the phone, when she firmly announced to the Director of the film company that she had decided not to invest in his venture, and not to join him as a full Partner. It had been a difficult decision to make; since early childhood she had nurtured the fantasy of some day writing and directing films that would tell a dramatic story, maybe even influence lives. Working with the director of the Swiss film production company for the past eighteen months, she could not help but admit to herself that producing films in fact entailed running around to find and structure the financing, and endless arguments with distribution companies, and constantly making deals that did not stick. Even the glamour of participating in the annual rituals at the Cannes Film Festival somehow did not compensate for all the superficiality that she had discovered the film business entailed. The ringing phone interrupted her reflections. Her first thought was, “I hope it‟s not the Director calling back to change my mind!” The voice of the caller was vaguely familiar, “Katrin, this is Trevor Johnson, surely you do remember – the Dean from BSL (Business School Lausanne), you called me Dr. Johnson? Well,...
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...smiled with the realization that, without intending to produce a SWOTi analysis, she had in fact organized her views about the Swiss film production company she had been working with into the familiar four categories. She was still not entirely convinced that she had made the right decision a few minutes earlier on the phone, when she firmly announced to the Director of the film company that she had decided not to invest in his venture, and not to join him as a full Partner. It had been a difficult decision to make; since early childhood she had nurtured the fantasy of some day writing and directing films that would tell a dramatic story, maybe even influence lives. Working with the director of the Swiss film production company for the past eighteen months, she could not help but admit to herself that producing films in fact entailed running around to find and structure the financing, and endless arguments with distribution companies, and constantly making deals that did not stick. Even the glamour of participating in the annual rituals at the Cannes Film Festival somehow did not compensate for all the superficiality that she had discovered the film business entailed. The ringing phone interrupted her reflections. Her first thought was, “I hope it‟s not the Director calling back to change my mind!” The voice of the caller was vaguely familiar, “Katrin, this is Trevor Johnson, surely you do remember – the Dean from BSL (Business School Lausanne), you called me Dr. Johnson? Well,...
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...Company profile Company name: Sara Lee Corporation Company Address: 3500 Lacey Road Downers Grove, IL 60515 United States Phone: 630-598-6000 Fax: 630-598-8482 Website: http://www.saralee.com CEO/President: Brenda Barnes Founding Year: 1939 Product line Breath: Sara Lee Corporation’s product line mainly consists of food, beverage and household products. ▪ Food & beverage (SLFB) division include Ball Park franks, Dean Sausage, Hillshire Farm deli meats, Sara Lee Breads & bakery products, Sara Lee frozen desserts and Senseo single serving coffeemakers and coffee pods. ▪ Household & body care products include Ambi pure air fresheners, Kiwi shoe care products & Sanex personal care products. Sara Lee also provides Foodservice to their customers. Branches: Sara Lee operates more than 40 countries such as USA, Australia, Newzeland, Netherlands, Philippines & etc. Key competitor: Hostess Brands, Inc; Kraft Foods Inc. (kft); Tyson Foods, Inc. (tsn) Mission: To simply delight you……everyday. Vision: To be the first choice of consumers and customers around the world by bringing together innovative ideas, continuous improvement and people who make things happen. Objective of the company: |Financial Objective |Strategic Objective ...
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...Financial Analysis McDonald’s Amber van Berkel 384941 Roos Bijen 336432 Lotte Bergsma 353604 Stenden University Hospitality Operations Environment Group A 18 / 05 / 2015 Appendix 4: Scoring Rubric assignment Unit 3 Financial Analysis Group number: A Module period: 4 Academic year: 2 Name assessor: Student name | Student number | Analyses | Grade | Amber van Berkel | 384941 | Income statement | | Lotte Bergsma | 353604 | Balance sheet | | Roos Bijen | 336432 | Cash flow statement | | | | | | | | Elements | | Scoring Rubrics | | Group/ individual | contents | Score 1-10 | remarks | Part A Getting to know the company (30%) | group | * Business drivers * 5 year record * Directors review | | | Part B: The financial statements (30%): | individual | Income Statement | | | | | Balance Sheet | | | | | Cash Flow Statement (*) | | | Part C (30%) Investors perspective | group | * Risk analysis * performance * overall conclusions (A+B+C) | | | Part D presentational aspect (10%) | group | * Lay-out * Grading sheet * Quality and use of English | | | | | | Preface During the second year in the module Hospitality Operations Environment of the International Hotel Management School a financial analysis has to be made. This financial analysis is about the company MacDonald’s. Findings, trends and conclusions found in the annual reports of 2013 and 2014 of the McDonald’s Corporation...
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...TERM PAPER MARKETTING PLANNING OF AHSANULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY TERM PAPER MARKETING PLANNIG OF NESTLE Submitted To: Prof. Sirajuddaula Shaheen Dean, Faculty of Business & Social Science Submitted By: Jesmin Akter Juthi (ID no. 10.01.02.020) Farah Tasneem (ID no. 10.01.02.023) Sharika Nahid (ID no. 10.01.02.039) Date of Submission:02 .02.2012 2nd Feb, 2012 Prof. Sirajuddaula Shaheen Dean, Faculty of Business and Social Sciences Ahsanullah University of Science and Technology. Dear Sir, I would like to thank you for giving us a term paper to prepare a realistic paper work about Marketing Plan of an organization and we chose Nestle. Without your help and advice it was quite impossible for us to prepare this term Paper. Your help and advice make us work much easier. While preparing this term Paper we got to know various things of the marketing plan of an organization which have increased our analytical skills. Though, as a member of group, I’m proud to say that our term Paper is a result of team work and we are really grateful...
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...Question: Conduct a strategic analysis of Kraft Foods Company, with special emphasis on Value chain and National Diamond model Solution: Industry Overview Kraft Foods Inc operates in the food and beverages industry. The industry is constituted by those companies that involve in stages of activities from procuring the raw food material after harvest till the retail purchase. The activities involved are the processing of raw food materials, manufacturing, packaging the food products and distributing them. The products may be fresh, prepared foods, packaged foods, alcoholic and nonalcoholic beverages. All the products that are meant for human consumption except the pharmaceutical products belong to this industry. The dairy sector forms the largest part of the food industry. The baked and cereal items and chilled foods are the close second and third. In case of the beverages industry, it is divided into alcoholic and nonalcoholic segment. A vast of the alcoholic market is made up of beer, cider and other flavored alcoholic beverages. On the other hand, soft drinks, coffee, tea, juice and water constitute the nonalcoholic beverage market. The industry is highly competitive and fragmented. Though the competition is among few notable players, no player has a dominant position to dictate the price levels. The players rely largely on advertisements to promote their brand and secure the market position (Food and Beverages Industry Profile, 2009). Market size: With over 16.5...
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...Question: Conduct a strategic analysis of Kraft Foods Company, with special emphasis on Value chain and National Diamond model Solution: Industry Overview Kraft Foods Inc operates in the food and beverages industry. The industry is constituted by those companies that involve in stages of activities from procuring the raw food material after harvest till the retail purchase. The activities involved are the processing of raw food materials, manufacturing, packaging the food products and distributing them. The products may be fresh, prepared foods, packaged foods, alcoholic and nonalcoholic beverages. All the products that are meant for human consumption except the pharmaceutical products belong to this industry. The dairy sector forms the largest part of the food industry. The baked and cereal items and chilled foods are the close second and third. In case of the beverages industry, it is divided into alcoholic and nonalcoholic segment. A vast of the alcoholic market is made up of beer, cider and other flavored alcoholic beverages. On the other hand, soft drinks, coffee, tea, juice and water constitute the nonalcoholic beverage market. The industry is highly competitive and fragmented. Though the competition is among few notable players, no player has a dominant position to dictate the price levels. The players rely largely on advertisements to promote their brand and secure the market position (Food and Beverages Industry Profile, 2009). Market size: With over 16.5...
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