BRITANNIA

INDUSTRIES
A PROFITABILITY ANALYSIS AND COMPARISON WITH
GLAXOSMITHKLINE AND NESTLE OVER 5 YEARS.

Objectives
Profitability Analysis of Britannia Industries.
Comparison with GlaxoSmithKline and Nestle
over 5 years.

Company
Overview

Britannia Industries
Founded in 1892 with initial capital of 265.
Largest company in Indian Food Processing Industry.
Revenue: 78.58 billion (2014)
Profit: 1.34 billion(2011)
Headquarters: Bengaluru, India.

GlaxoSmithKline
Established in 2000 by a merger of Glaxo
Wellcome and SmithKline Beecham
World's sixth largest pharmaceutical company as
of 2015
Net income: 8.372 billion (2015)
Revenue: 23.923 billion (2015)
Headquarters: Brantford, London

Nestle
Founders: George Page, Charles Page, Henri Nestl
Largest food company in the world measured by
revenues
Ranked #72 on the Fortune Global 500 in 2014
Headquarters: Vevey, Switzerland
Revenue: 88.8billion CHF (2015)

PROFITABILITY
ANALYSIS

Profitability Ratios
Net Profit Margin
Operating Profit Margin
Return on Assets
Sales Growth

Net Profit Margin

Percentage of revenue left after all expenses have

been deducted from sales.
Indicates the amount of profit that a business can
extract from its total sales.
NET SALES
= GROSS SALES SALES DEDUCTIONS
NET PROFIT MARGIN =

Operating Margin Ratio

Used to measure a company's pricing strategy and

operating efficiency.
Measurement of what proportion of a company's
revenue is left over after paying for variable costs of
production.
NET SALES
= GROSS SALES - SALES
DEDUCTIONS
OPERATING MARGIN =

Return on Assets

Indicator of how profitable a company is relative to

its total assets.
Measurement of efficiency of using assets to
generate earnings.

ROA =

Sales Growth
Growth in the average sales volume of a company's
products or services, typically from year to year.
Indicator of a company's health and ability to
sustain its business.
Measure how fast a business is expanding.
Helps investors identify trends in order to gauge
revenue growth over time.

COMMON SIZE
STATEMENT

Britannia Industries
Margins %
of Sales
Revenue
COGS
Gross
Margin
Other
Operating
Margin
Net Int Inc &
Other
EBT Margin

2016-15

2015-14

2014-13

2013-12

2012-11

100
57.65

100
60.09

100
61.24

100
62.55

100
64.69

42.35

39.91

38.76

37.45

35.31

15.41

28.39

32.05

32.11

31.2

13.76

12.03

8.14

5.65

5.64

0.04

0.05

0.2

0.14

-0.76

13.8

12.08

8.34

5.79

4.88

GlaxoSmithKline
Margins %
of Sales
Revenue
COGS
Gross
Margin
Other
Operating
Margin
Net Int Inc &
Other
EBT Margin

2016-15

2015-14

2014-13

2013-12

2012-11

100
37.01

100
31.83

100
32.39

100
29.87

100
26.77

62.99

68.17

67.61

70.13

73.23

-33.62

1.7

-5.7

-5.91

-2.14

43.15

15.64

26.52

27.97

28.51

0.85

-2.73

-1.44

-2.65

-0.4

44

12.9

25.08

25.32

28.11

Nestle
Margins %
of Sales
Revenue
COGS
Gross
Margin
Other
Operating
Margin
Net Int Inc &
Other
EBT Margin

2016-15

2015-14

2014-13

2013-12

2012-11

100
50.38

100
51.76

100
52.08

100
52.42

100
52.68

49.62

48.24

47.92

47.58

47.32

1.93

4.42

2.64

0.96

1.03

13.98

11.87

14.15

15.09

14.89

-0.7

-0.69

-0.68

-0.52

-0.5

13.27

11.18

13.46

14.57

14.38

Presented by Fiyanshu Kalra (16DCP-018)

Harsh Kotriwal (16DCP-022)
Karishma Mahajan (16DCP-028)
Lovish Parashar (16DCP-031)
Parul Verma (16DCP-038)
Prachi Nagayach (16DCP-040)