HP Numbers Flashcards
What’s happened to revenue in 2024?
-Increased despite declining demand in a difficult market
- Up by 3.39% from 2023 to 331,600,000
What can be said of COS?
- Increase reflects increase in revenue
- Up by 3.71% from 2023 to 241,474,000
What was the change in selling, marketing and distro costs?
Up 4.06% to 53,182,000
What happened to finance costs?
- Down by 6.83% in 2024 - showing a decreasing lease liability
What was the growth in operating profit?
Up 0.04% to 29,844,000
What was the growth in PBT?
Up 0.54% to 27,961,000
What was the growth in profit?
Up 0.2% to 19,731,000
What are the 2024 P/L ratios?
Operating profit margin - 9%
Gross profit margin - 27%
Net profit margin - 6%
Unchanged since 2023
What does non-current assets show?
Large investment in PPE during 2024
What does current assets show?
Small increase in 2024 means that liquidity hasn’t been improved
What does equities and liabilities show?
Large dividend payment
How much has inventory gone up by?
13.32% to 9,230,000
What’s happened to cash?
Gone down by 0.98% to 5,073,000
What’s happened to assets/total equity and liabilties?
Up 4.56% to 177,082,000
What’s happened to inventory days?
Up from 12.8 to 14 days - possible production inefficiencies
What’s happened to receivable days?
Down from 53.4 to 52.4
What’s happened to payables days?
Down from 67.5 to 66.9
What’s the WC cycle?
(0.5) in 2024 - represents fast movement of cash through the business
What are HP’s liquidity ratios in 2024?
Current ratio - 0.9
Quick ratio - 0.8
Both unchanged from 2023 and represent low liquidity in HP
What are the capital structure ratios?
- Gearing (LT Debt/Equity) - down 4.92% to 29.6%
- Gearing (LT Debt/LT Debt+Equity) - down 2.82% to 22.8%
- Cost of borrowing - down 0.1% to 7.2%
- Interest cover - down 1.09 to 15.85
How much was the dividend paid in 2024?
12,000,000
How much was the significant cash investment in PPE?
19,730,000
How much cash is generated from operating activities?
32,367,000
What are WC capital changes overall?
(494,000) - slightly negative overall
What are the budgeted figures for 2025?
Sales revenue - 350,591,000
COS - (252,638,000)
Gross Profit - 97,953,000
Gross profit margin - 27.9%
What can be inferred from the 2025 budget?
- Planned slight increase in gross profit margin
- Planning a significant increase in revenue
Which loaf has the biggest sales volume?
Wholemeal - 84,500,000
- Large retailers - 67,600,000
- Small retailers - 16,900,000
Which loaf has the smallest sales volumes?
Rustic - 45,300,000
- Large retailers - 36,240,000
- Small retailers - 9,060,000
What are the average sales prices of a loaf to large retailers?
- White - 0.88
- Wholemeal - 0.88
- Multi-seed - 1.20
- Rustic - 1.52
What are the average sales prices of a loaf to small retailers?
- White - 1.10
- Wholemeal - 1.10
- Multi-seed - 1.50
- Rustic - 1.90
How can the significant price difference between large and small retailers be justified?
Large retailers buy in bulk and have more pricing power
What is the highest cost of producing a batch of loaves?
Raw materials:
- White - 1,256.25
- Wholemeal - 1,398.75
- Multi-seed - 1,473.75
- Rustic - 1,651.25
What is the total sales revenue per type of loaf?
White - 72,534,000
Wholemeal - 78,078,000 (most)
Multi-seed - 76,860,000
Rustic - 72,299,000 (least)
Why are raw materials the highest production cost?
HP use the highest quality ingredients, this leaves them vulnerable to a hike
What’s the total cost per batch of each loaf?
White - 1842.93
Wholemeal - 2004.39
Multi-seed - 2098.34
Rustic - 2280.85
What are the gross profit margins per loaf?
White - 20.2%
Wholemeal - 13.2%
Multi-seed - 33.4%
Rustic - 42.8%
What can be inferred from the gross profit margins?
- Wholemeal margin is potentially concerning
- Rustic has the best margin - may come down with increased sales volume
What packet of rolls has the highest sales volume?
White - 26,700,000
- Large retailers - 21,360,000
- Small retailers - 5,340,000
What packet of rolls has the lowest sales volume?
Rustic - 6,000,000
- Large retailers - 4,800,000
- Small retailers - 1,200,000
What is the average sales price of a packet of rolls to large retailers?
White - 0.64
Wholemeal - 0.64
Multi-seed - 0.80
Rustic - 1.08
What is the average sales price of a packet of rolls to small retailers?
White - 0.80
Wholemeal - 0.80
Multi-seed - 1
Rustic - 1.35
What’s the sales revenue for each type of packet of rolls?
White - 17,942,000
Wholemeal - 12,970,000
Multi-seed - 13,104,000
Rustic - 6,804,000
What is the total cost of sales for each loaf?
White - 57,868,000
Wholemeal - 67,748,000
Multi-seed - 51,199,000
Rustic - 41,329,000
What is the total cost per unit for each batch of type of rolls?
White - 1,193.26
Wholemeal - 1,283.72
Multi-seed - 1,340.43
Rustic - 1,448.39
What is the total cost of sales for each roll?
White - 12,744,000
Wholemeal - 9,910,000
Multi-seed - 8,364,000
Rustic - 3,476,000
What are the gross profit margins per roll?
White - 29%
Wholemeal - 23.6%
Multi-seed - 36.2%
Rustic - 48.9%
What rough % is raw materials of total cost for a batch of multi seed loaves?
70%
Largest expense is flour - limited supplier and vulnerable to price changes
What are the total FC for a batch of multi-seed loaves?
395.15 - c.20% of total cost, very high
What is the corporation tax rate in Keeland?
30%
How much is the sales tax in Keeland?
20% on net (input-output)
How much is the allowable tax depreciation in Keeland?
PPE - 25% on a reducing balance basis
FYA available in year of purchase
Can tax losses be carried forward in Keeland?
Yes - useful for an expansion
