Mandatory assigment

Royal Unibrew A/S

The assignment covers two companies:
-

The brewery Royal Unibrew A/S, www.royalunibrew.com

The brewery Harboe A/S, www.harboes-bryggeri.dk

A resum of the yearly accounts of the companies is enclosed in the Excel sheets
for the period 2009 - 2011 for Royal Unibrew A/S and 2008/09 - 2010/11 for Harboe A/S

Task
A) Calculate the selected financial keyfigures for Royal Unibrew A/S
(Profitability, Earnings capacity, Capital adjustment, Solvency & liquidity)
B) Comment the development in the key figures and find the reasons behind the
development (use their webpage to find further information about the company)

C) Calculate the seleceted financial keyfigures for Harboe A/S.

(Profitability, Earnings capacity, Capital adjustment, Solvency & liquidity)
D) Comment the development in the key figures and find the reasons behind the
development (use their webpage to find further information about the company)

E) Make a comparisation of these two breweries. What does the figures and development
show. Explain the differences.
C) Which of these two companies would you prefer to invest in and why?
Find at least 5 arguments
G) Deliver a written report from the group of maximum 5 pages with your calculation and your comments
Remember your classe and all the names in the group

Resume of the accounts for Royal Unibrew A/S 2008-2011

Group mill. dkk
Profit and loss
Turnover
Production cost
Contribution
Sales and distribution cost
Administration cost
Other external cost
Profit before interest (EBIT)
Result ass. Companies
Net financial cost
Profit before tax (EBT)
Tax
Profit of the year before minorities
Minorities share
The result of the year (EAT)

2008
4,179
-2,433
1,746
-1,388
-223
-505
-370
23
-106
-453
-30
-483
-1
-484

2009
3,816
-2,211
1,605
-1,147
-215
-35
208
26
-158
76
-24
52
-5
47

Note:
in calculating the return on equity use the the result of the year

2010
3,775
-1,946
1,829
-1,200
-212
0
417
31
-73
375
-97
278
0
278

2011
3,431
-1,685
1,746
-1,085
-186
0
475
14
-28
461
-110
351
-3
348

Balance sheet

2007

2008

2009

2010

2011

Financial analysis Royal Unibrew

Assets
Non tangible assets
Tangible assets
Financial assets
Fixed assets total

774
1,557
266
2,597

486
2,080
177
2,743

480
2,014
180
2,674

402
1,772
201
2,375

391
1,601
298
2,290

Stock
Debtors
Other receivables
Cash
Current assets
ASSETS

352
578
96
158
1,184
3,781

415
542
261
90
1,308
4,051

238
409
77
92
816
3,490

187
407
51
37
682
3,057

173
379
29
19
600
2,890

Liabilities
Share capital
Retained profit
Dividen
Equity total
Minitity interest

59
963
59
1,081
39

56
484
0
540
35

112
845
0
957
38

112
1017
140
1,269
12

112
1006
190
1,308
13

Long term debt

Creditors
Other short term liabilities
Short term liabilities
Total debt
LIABILITIES

1,668
350
643
993
2,661
3,781

1,883
523
1070
1,593
3,476
4,051

1,681
419
395
814
2,495
3,490

778
430
568
998
1,776
3,057

784
398
387
785
1,569
2,890

2008

2009

2010

2011

Profitability
Return on investment
Profit margin ratio
Asset turnover ratio
Return on equity

-12.4%
-8.9%
1.1
-11.4%

1.2%
5.5%
1.0
6.9%

8.5%
11.0%
1.2
9.4%

11.7%
13.8%
1.2
9.2%

Earning capacity
Contribution margin
Index turnover
Index sales and distribution cost
Index administration cost
Capacity cost total
Capacity ratio
Break even turnover
Safety margin

41.8%
100
100
100
2,116
0.83
5,065
-21.2%

42.1%
91
83
96
1,397
1.15
3,321
13.0%

48.5%
90
86
95
1,412
1.30
2,914
22.8%

50.9%
82
78
83
1,271
1.37
2,498
27.2%

Capital adjustment analysis

Fixed asset turnover ratio

1.6

1.4

1.5

1.5

Stock turnover ratio

Debtor turnover ratios

5.9
7.5

9.3
8.0

10.4
9.3

9.7
8.7

13.3%
0.8
0.6
6.44

27.4%
1.0
0.7
2.61

41.5%
0.7
0.5
1.40

45.3%
0.8
0.5
1.20

Solvency and liquidity

Solvency ratio
Current ratio
Acid test ratio
D/E ratio gearing ratio

Resume of the accounts of Harboe A/S 2008/09 - 2011/12

Group mill. dkk
Resultatopgrelse
Turnover
Production cost
Contribution
Sales and distribution cost
Administration ocst
Other external cast
Profit before interest (EBIT)
Result ass. Companies
Net financial cost
Profit before tax (EBT)
Tax
Profit of the year before minorities
Minorities share
The result of the year (EAT)

08/09
1,545
-1,299
246
-173
-32
0
41
1
-7
35
-9
26
0
26

09/10
1,525
-1,247
278
-175
-39
0
64
-3
-3
58
-15
43
0
43

10/11
1,321
-1,024
297
-183
-47
0
67
0
-6
61
-20
41
0
41

11/12
1,410
-1,122
288
-187
-41
0
60
0
-9
51
-13
38
0
38

Balance sheet
Assets
Non tangible assets
Tangible assets
Financial assets
Fixed assets total

30/4 08

30/4 09

30/4 10

30/4 11

30/4 12

6
794
10
810

11
801
298
1,110

16
858
287
1,161

23
872
289
1,184

36
803
270
1,109

115
237
25
12
389
1,199

118
267
51
60
496
1,606

122
304
14
44
484
1,645

138
302
21
40
501
1,685

137
278
28
24
467
1,576

Liabilities
Share capital
Retained profit
Dividen

60
637
0

60
604
0

60
670
0

60
693
0

60
730
0

Equity total

697

664

730

753

790

0
109
186
207
393
502
1,199

0
422
200
320
520
942
1,606

0
386
188
341
529
915
1,645

0
346
216
370
586
932
1,685

0
350
190
246
436
786
1,576

Stock
Debtors
Other receivables
Cash
Current assets
ASSETS

Minitity interest
Long term debt
Creditors
Other short term liabilities
Short term liabilities
Total debt
LIABILITIES

Financial analysis Harboe

Profitability
Return on investment
Profit margin ratio
Asset turnover ratio
Return on equity
Earning capacity
Contribution margin
Index turnover
Index sales and distribution cost
Index administration cost
Capacity cost total
Capacity ratio
Break even turnover
Safety margin

08/09

09/10

10/11

11/12

2.9%
2.7%
1.1
6.0%

3.9%
4.2%
0.9
9.2%

4.0%
5.1%
0.8
9.0%

3.7%
4.3%
0.9
7.8%

15.9%
100
100
100
205
1.20
8
99.5%

18.2%
99
101
100
214
1.30
7
99.5%

22.5%
86
106
100
230
1.29
6
99.6%

20.4%
91
108
100
228
1.26
6
99.6%

1.1
11.2
6.1

0.9
10.4
5.3

0.8
7.9
4.4

0.9
8.2
4.9

41.3%
1
1
1.4

44.4%
1
1
1.3

44.7%
1
1
1.2

50.1%
1
1
1.0

Capital adjustment analysis

Fixed asset turnover ratio
Stock turnover ratio
Debtor turnover ratios
Solvency and liquidity
Solvency ratio
Current ratio
Acid test ratio
D/E ratio

Comparisation of the financial ratios

Royal
Unibrew
2011
Profitability
Return on investment
Profit margin ratio
Asset turnover ratio
Return on equity
Earning capacity
Contribution margin
Index turnover
Index sales and distribution cost
Index administration cost
Capacity cost total
Capacity ratio
Break even turnover
Safety margin
Capital adjustment analysis
Fixed asset turnover ratio
Stock turnover ratio
Debtor turnover ratios
Solvency and liquidity
Solvency ratio
Current ratio
Acid test ratio
D/E ratio gearing ratio

-12.40%
-8.9%
1.10
-11.40%

41.80%
100
100
100

Harboe
2011/12

2008

2009

2010

2011

Profitability
Return on
-12.4%
Profit margi
-8.9%
Asset turno
1.1
Return on e -11.4%

1.2%
5.5%
1.0
6.9%

8.5%
11.0%
1.2
9.4%

11.7%
13.8%
1.2
9.2%

Earning capacity
Contributio
41.8%
Index turno
100
Index sales
100
Index admin
100
Capacity co
2,116
Capacity ra
0.83
Break even
5,065
Safety mar -21.2%

42.1%
91
83
96
1,397
1.15
3,321
13.0%

48.5%
90
86
95
1,412
1.30
2,914
22.8%

50.9%
82
78
83
1,271
1.37
2,498
27.2%

Capital adjustment analysis

Fixed asset
1.6
1.4
Stock turno
5.9
9.3
Debtor turn
7.5
8.0

1.5
10.4
9.3

1.5
9.7
8.7

Solvency and liquidity

Solvency ra 13.3%
27.4%
Current rat
0.8
1.0
Acid test ra
0.6
0.7
D/E ratio g
6.44
2.61

41.5%
0.7
0.5
1.40

45.3%
0.8
0.5
1.20