Wednesday, September 11, 2019
Global Operation and Risks Management Study of Britvic Group Plc (Ro) Essay
Global Operation and Risks Management Study of Britvic Group Plc (Ro) - Essay Example With the strong position of the company in the beverage industry, this report assesses the financial position of the company and risk management systems employed by the Britvic. Comparative assessment of the performance of the company is gauged by developing comparative competitorsââ¬â¢ analysis (Pinto, et al., 2010), and ratio based assessment (Fabozzi, and Peterson, 2013). The analysis of the leading competitors concluded that Britvic is comparatively small player as compared to the competitors: Above graphical presentation reflects that Britvicââ¬â¢s share is only 9% of the market but stands on second in a row and Nichols Plc dominate in terms of revenue. However, with respect to EPS performance SabMiller is leading the position and Britvic is pushed last position. Despite limited share as compared to the competitors, the company has improved its performance by controlling operating cost. The net income improved from à £61.9 m in 2013 to à £ 89.7m 2014 (Britivic, 2014c). Given below is the five years trend of the revenue: The revenue fluctuated due to the Fruiteââ¬â¢ Enterprise, the recall of the acquisition of Fruit Shoot, and the impact of the recovery measures taken in the subsequent years (Daneshkhu, 2014; Britvic, 2013). In addition, rising operating and net profit is the impact of the cost control programs. The balance sheet has shown mixed trends implying that Britvic is inclined in maintaining the capital structure; except 2010 in which company performance could not offset the losses from retained earnings. Similar movement between the short term and the long term assets is reported as company does not excessively stick capital in any short or long term assets. Company has issued debt of à £105.8 million for the expansion of Fruit Shoot the USA and of operations in India. In addition to this investment of à £40m was done to for achieving costs saving of à £30m by the end of (2016 Britvic, 2013). Net Profit Margin: As the name implies, net
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