HP Numbers

Question 1

What’s happened to revenue in 2024?

Answer 1

-Increased despite declining demand in a difficult market
- Up by 3.39% from 2023 to 331,600,000

Question 2

What can be said of COS?

Answer 2

• Increase reflects increase in revenue
• Up by 3.71% from 2023 to 241,474,000

Question 3

What was the change in selling, marketing and distro costs?

Answer 3

Up 4.06% to 53,182,000

Question 4

What happened to finance costs?

Answer 4

• Down by 6.83% in 2024 - showing a decreasing lease liability

Question 5

What was the growth in operating profit?

Answer 5

Up 0.04% to 29,844,000

Question 6

What was the growth in PBT?

Answer 6

Up 0.54% to 27,961,000

Question 7

What was the growth in profit?

Answer 7

Up 0.2% to 19,731,000

Question 8

What are the 2024 P/L ratios?

Answer 8

Operating profit margin - 9%
Gross profit margin - 27%
Net profit margin - 6%

Unchanged since 2023

Question 9

What does non-current assets show?

Answer 9

Large investment in PPE during 2024

Question 10

What does current assets show?

Answer 10

Small increase in 2024 means that liquidity hasn’t been improved

Question 11

What does equities and liabilities show?

Answer 11

Large dividend payment

Question 12

How much has inventory gone up by?

Answer 12

13.32% to 9,230,000

Question 13

What’s happened to cash?

Answer 13

Gone down by 0.98% to 5,073,000

Question 14

What’s happened to assets/total equity and liabilties?

Answer 14

Up 4.56% to 177,082,000

Question 15

What’s happened to inventory days?

Answer 15

Up from 12.8 to 14 days - possible production inefficiencies

Question 16

What’s happened to receivable days?

Answer 16

Down from 53.4 to 52.4

Question 17

What’s happened to payables days?

Answer 17

Down from 67.5 to 66.9

Question 18

What’s the WC cycle?

Answer 18

(0.5) in 2024 - represents fast movement of cash through the business

Question 19

What are HP’s liquidity ratios in 2024?

Answer 19

Current ratio - 0.9
Quick ratio - 0.8

Both unchanged from 2023 and represent low liquidity in HP

Question 20

What are the capital structure ratios?

Answer 20

• 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

Question 21

How much was the dividend paid in 2024?

Answer 21

12,000,000

Question 22

How much was the significant cash investment in PPE?

Answer 22

19,730,000

Question 23

How much cash is generated from operating activities?

Answer 23

32,367,000

Question 24

What are WC capital changes overall?

Answer 24

(494,000) - slightly negative overall

Question 25

What are the budgeted figures for 2025?

Answer 25

Sales revenue - 350,591,000 COS - (252,638,000) Gross Profit - 97,953,000 Gross profit margin - 27.9%

Question 26

What can be inferred from the 2025 budget?

Answer 26

- Planned slight increase in gross profit margin - Planning a significant increase in revenue

Question 27

Which loaf has the biggest sales volume?

Answer 27

Wholemeal - 84,500,000 - Large retailers - 67,600,000 - Small retailers - 16,900,000

Question 28

Which loaf has the smallest sales volumes?

Answer 28

Rustic - 45,300,000 - Large retailers - 36,240,000 - Small retailers - 9,060,000

Question 29

What are the average sales prices of a loaf to large retailers?

Answer 29

- White - 0.88 - Wholemeal - 0.88 - Multi-seed - 1.20 - Rustic - 1.52

Question 30

What are the average sales prices of a loaf to small retailers?

Answer 30

- White - 1.10 - Wholemeal - 1.10 - Multi-seed - 1.50 - Rustic - 1.90

Question 31

How can the significant price difference between large and small retailers be justified?

Answer 31

Large retailers buy in bulk and have more pricing power

Question 32

What is the highest cost of producing a batch of loaves?

Answer 32

Raw materials: - White - 1,256.25 - Wholemeal - 1,398.75 - Multi-seed - 1,473.75 - Rustic - 1,651.25

Question 33

What is the total sales revenue per type of loaf?

Answer 33

White - 72,534,000 Wholemeal - 78,078,000 (most) Multi-seed - 76,860,000 Rustic - 72,299,000 (least)

Question 34

Why are raw materials the highest production cost?

Answer 34

HP use the highest quality ingredients, this leaves them vulnerable to a hike

Question 35

What's the total cost per batch of each loaf?

Answer 35

White - 1842.93 Wholemeal - 2004.39 Multi-seed - 2098.34 Rustic - 2280.85

Question 36

What are the gross profit margins per loaf?

Answer 36

White - 20.2% Wholemeal - 13.2% Multi-seed - 33.4% Rustic - 42.8%

Question 37

What can be inferred from the gross profit margins?

Answer 37

- Wholemeal margin is potentially concerning - Rustic has the best margin - may come down with increased sales volume

Question 38

What packet of rolls has the highest sales volume?

Answer 38

White - 26,700,000 - Large retailers - 21,360,000 - Small retailers - 5,340,000

Question 39

What packet of rolls has the lowest sales volume?

Answer 39

Rustic - 6,000,000 - Large retailers - 4,800,000 - Small retailers - 1,200,000

Question 40

What is the average sales price of a packet of rolls to large retailers?

Answer 40

White - 0.64 Wholemeal - 0.64 Multi-seed - 0.80 Rustic - 1.08

Question 41

What is the average sales price of a packet of rolls to small retailers?

Answer 41

White - 0.80 Wholemeal - 0.80 Multi-seed - 1 Rustic - 1.35

Question 42

What's the sales revenue for each type of packet of rolls?

Answer 42

White - 17,942,000 Wholemeal - 12,970,000 Multi-seed - 13,104,000 Rustic - 6,804,000

Question 43

What is the total cost of sales for each loaf?

Answer 43

White - 57,868,000 Wholemeal - 67,748,000 Multi-seed - 51,199,000 Rustic - 41,329,000

Question 44

What is the total cost per unit for each batch of type of rolls?

Answer 44

White - 1,193.26 Wholemeal - 1,283.72 Multi-seed - 1,340.43 Rustic - 1,448.39

Question 45

What is the total cost of sales for each roll?

Answer 45

White - 12,744,000 Wholemeal - 9,910,000 Multi-seed - 8,364,000 Rustic - 3,476,000

Question 46

What are the gross profit margins per roll?

Answer 46

White - 29% Wholemeal - 23.6% Multi-seed - 36.2% Rustic - 48.9%

Question 47

What rough % is raw materials of total cost for a batch of multi seed loaves?

Answer 47

70% Largest expense is flour - limited supplier and vulnerable to price changes

Question 48

What are the total FC for a batch of multi-seed loaves?

Answer 48

395.15 - c.20% of total cost, very high

Question 49

What is the corporation tax rate in Keeland?

Answer 49

30%

Question 50

How much is the sales tax in Keeland?

Answer 50

20% on net (input-output)

Question 51

How much is the allowable tax depreciation in Keeland?

Answer 51

PPE - 25% on a reducing balance basis FYA available in year of purchase

Question 52

Can tax losses be carried forward in Keeland?

Answer 52

Yes - useful for an expansion