Nestle's Financial Analysis

Topics: Generally Accepted Accounting Principles, Balance sheet, Cash flow Pages: 110 (5244 words) Published: December 5, 2013
November the 19th, 2010

Financial analysis
Group project

BAL-BIYA Karim, BERAS Lolita, CARUGO Ronald, CHERCHOUR Nabil, DEROCHE Lawry, KORYTNIKOVA EKATERINA, PODVARKO Oxana

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Table of contents
1.

Presentation of Nestlé S.A............................................................................................................... 4 1.1.

History ..................................................................................................................................... 4

1.2.

Key facts in the historical development .................................................................................. 4

1.3.

Business description ................................................................................................................ 5

1.4.

Major products and services linked to their brands ................................................................. 5

2.

SWOT Analysis ............................................................................................................................... 6

3.

Financial structure ........................................................................................................................... 7 3.1.

Solvency and liquidity perspective .......................................................................................... 7

3.2.

Capital employed analysis ..................................................................................................... 10

4.

Trend analysis................................................................................................................................ 12

5.

Financial cash flows analysis ........................................................................................................ 17

6.

Assessment of the risks ................................................................................................................. 20

7.

Recommendations ......................................................................................................................... 22

References ............................................................................................................................................. 23

Appendix 1: Balance Sheets .................................................................................................................. 25 Appendix 2: Income statements ............................................................................................................ 33 Appendix 3: Cash flow statements ........................................................................................................ 40 Appendix 4: PepsiCo Income Statement .............................................................................................. 47 Appendix 5: Kraft Food Inc. financial data ........................................................................................... 48 Appendix 6: Press release...................................................................................................................... 49

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1. Presentation of Nestlé S.A.
1.1.History
Nestle is a Swiss company, founded in 1867 by Henri Nestle. Nestlé means “little nest” in Swiss German. Its first customer was a premature infant who could not tolerate his mother’s milk and any other conventional substitute. Then Henri’s aim was to fight against the problem of infant mortality dues to malnutrition for which he developed a product combining various cow’s milk, wheat flour, sugar and named it Farine Lactee Nestlé, the first product of the company being marketed in Europe.

1.2.Key facts in the historical development
1866

Company’s foundation

1905

Merger between Nestlé and Anglo-Swiss Condensed Milk

1938-1944

Growing of the company during the two wars

1947

Merger with Maggi seasoning and soups, Crosse & Blackwell (1950), Findus (1963), Libby's (1971) and Stouffer's (1973)...
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