Danone Financial Statement Analysis
DANONE Case
- Financial analysis of Danone group
PENG Bo (e113110) GE Chuxiao(e113051) JIANG Yihong(e113066)
Fiancial Statement Analysis – Danone Case
Agenda
• Introduction
• Capital structure
• Profitability
• Return • Liquidity • Solvency • Conclusions & Recommendations
Fiancial Statement Analysis – Danone Case
Introduction of DANONE Group
History
Initiate in 1966, DANONE evolved from the original glass manufacturer to the international leader in fresh diary products.
Mission
“bringing health through food to as many people as possible”
Divisions
the Fresh Dairy Products Division the Waters Division the Baby Nutrition Division the Medical Nutrition Division
Global Approach
The group now represent in all regions in world.
Fiancial Statement Analysis – Danone Case
Introduction
Improvement in the group’s capital structure
Through last half decade, the DANONE Group enjoyed an improvement in its capital structure. The group’s D/E ratio decreased by almost 50% from 1.35 to 0.74. In 2007, a draw-down amount on bank credit facilities of 5173 million dramatically increased the group’s debt level which led to a D/E ratio of 1.35. This ratio continued to increase in 2008 because of shareholders’ equity loss from unfavorable exchange rate fluctuation.
We only include interest-bearing financial debt when calculate D/E ratio
After 2008, the group’s indebtedness greatly improved. In 2009, the D/E ratio sharply decreased to 0.58 because that the firm decidedly revised its financial structure by raising around 3 billion new equity capital and repaying its liabilities. From 2009, the D/E ratio slightly grew back majorly due to the issuance of new bonds. To conclude, the improvement of indebtedness is good for the group, because with a lower D/E ratio, the group can have a better strategic and financial flexibility.
Fiancial Statement Analysis – Danone Case
Capital Structure Analysis
Improvement of capital
- Financial analysis of Danone group
PENG Bo (e113110) GE Chuxiao(e113051) JIANG Yihong(e113066)
Fiancial Statement Analysis – Danone Case
Agenda
• Introduction
• Capital structure
• Profitability
• Return • Liquidity • Solvency • Conclusions & Recommendations
Fiancial Statement Analysis – Danone Case
Introduction of DANONE Group
History
Initiate in 1966, DANONE evolved from the original glass manufacturer to the international leader in fresh diary products.
Mission
“bringing health through food to as many people as possible”
Divisions
the Fresh Dairy Products Division the Waters Division the Baby Nutrition Division the Medical Nutrition Division
Global Approach
The group now represent in all regions in world.
Fiancial Statement Analysis – Danone Case
Introduction
Improvement in the group’s capital structure
Through last half decade, the DANONE Group enjoyed an improvement in its capital structure. The group’s D/E ratio decreased by almost 50% from 1.35 to 0.74. In 2007, a draw-down amount on bank credit facilities of 5173 million dramatically increased the group’s debt level which led to a D/E ratio of 1.35. This ratio continued to increase in 2008 because of shareholders’ equity loss from unfavorable exchange rate fluctuation.
We only include interest-bearing financial debt when calculate D/E ratio
After 2008, the group’s indebtedness greatly improved. In 2009, the D/E ratio sharply decreased to 0.58 because that the firm decidedly revised its financial structure by raising around 3 billion new equity capital and repaying its liabilities. From 2009, the D/E ratio slightly grew back majorly due to the issuance of new bonds. To conclude, the improvement of indebtedness is good for the group, because with a lower D/E ratio, the group can have a better strategic and financial flexibility.
Fiancial Statement Analysis – Danone Case
Capital Structure Analysis
Improvement of capital