Pioneer Foods: Company Profile and SWOT Analysis by ICDResearch

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									Pioneer Foods

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Pioneer Foods                                                                    Financial Snapshot

                                                                                 Operating Performance
Fast Facts
                                                                                 The company reported revenues of US$2,143.23
Headquarters Address                32 Market Street, Paarl, 7646,South Africa
                                                                                 million during 2010, with a CAGR of 10.69% during
                                                                                 2006–2010. Its revenue grew at an annual rate of
Telephone                            + 27 21 8075100
                                                                                 11.08% over the previous fiscal year. In 2010, the
                                                                                 company recorded an operating margin of 4.72%, as
Fax                                  + 27 21 8075280                             against 6.71% in 2009.

Website                             www.pioneerfoods.co.za
                                                                                 Revenue and Margins
Ticker Symbol, Stock Exchange       PFG, Johannesburg Stock Exchange

Number of Employees                 12,530

Fiscal Year End                     September

Revenue (in US$ million)            2,143.23

Revenue (in ZAR million)            15,731.32




SWOT Analysis                                                                    Return on Equity

Strengths                           Weaknesses                                   The company recorded a return on equity (ROE) of
                                                                                 4.94% for 2010, as compared to its peers, Sara Lee
Dominant Market Position            Decline in Revenues                          Corporation (Ticker: SLE), AVI Limited (Ticker: AVI)
                                                                                 and Premier Foods plc (Ticker: PFD), which recorded
                                                                                 ROEs of 34.03%, 15.85% and -10.04% respectively.
Extensive Product Offerings         Lack of Geographical Reach                   The company reported an operating margin of 4.72%
                                                                                 in 2010.


                                                                                 Return on Equity
Opportunities                       Threats

Growing Chilled Food Market in the UK Changing Consumer Preferences

Growing Ready-to-Drink Beverages
                                    Fluctuations in Raw Material Prices
Market
                                    Outbreaks of Disease among Livestock
Strategic Acquisitions
                                    and Poultry




                                                                                 Liquidity Position

                                                                                 The company reported a current ratio of 2.21 in 2010,
                                                                                 as compared to its peers, Sara Lee Corporation, AVI
                                                                                 Limited and Premier Foods plc, which recorded
                                                                                 current ratios of 1.40, 1.35 and 0.90 respectively. As
                                                                                 of September 2010, the company recorded cash and
                                                                                 short-term investments of worth US$96.72 million,
                                                                                 against US$22.96 million current debt. The company
                                                                                 reported a debt to equity ratio of 0.24 in 2010 as
                                                                                 compared to its peers, Sara Lee Corporation, AVI
                                                                                 Limited and Premier Foods plc, which recorded debt
                                                                                 to equity ratios of 1.87, 0.31 and 1.30 respectively.




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Pioneer Foods - SWOT Profile                                                                                             Page 1
Pioneer Foods

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1     Company Overview .................................................................................................................................................5
    1.2     Business Description ...............................................................................................................................................5
    1.3     Major Products and Services ...................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................. 10
    2.1     Five Year Snapshot: Overview of Financial and Operational Performance Indicators .........................................10
    2.2     Key Financial Performance Indicators ...................................................................................................................13
      2.2.1        Revenue and Operating Profit .......................................................................................................................13
      2.2.2        Asset, Liabilities and Capex ..........................................................................................................................14
      2.2.3        Net Debt vs. Gearing Ratio ............................................................................................................................15
      2.2.4        Operational Efficiency ....................................................................................................................................16
      2.2.5        Solvency ........................................................................................................................................................17
      2.2.6        Valuation ........................................................................................................................................................18
    2.3     Competitive Benchmarking ....................................................................................................................................19
      2.3.1        Market Capitalization .....................................................................................................................................19
      2.3.2        Efficiency .........................
								
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