Growing Consistency Comparison

This report indicates the Applications of Statistics Analysis tools in Business

World; for this purpose we have chosen the data of two famous Brands Nestle.pk
& EngroFoods.pk. This report gives an idea how to utilize these Statistics
Analysis functions in our real life.
BBA-H
 Final Project of Statistics
Course Facilitator: Sir Mubbasher Munir
Section C1
Group Members:
IBRAR HSSAIN 12045005023(BBA-H)
NIZAM HUSSAIN 15052005022(BBA-H)
University of Management and Technology Lahore
 ACKNOWLEDGMENT

We are profoundly grateful to Almighty Allah for enabling us to accomplish this

Project!

We are sincerely thankful to our supervisor Sir Mubbasher Munir (Course

Facilitator: Statistics & Inferences) for extending best possible support and cooperation

for giving us the idea for making such report on practical basis. He got a strong

command on the subject and the topics he covered, during entire semester, would help

us a lot while implementing this knowledge in our practical life.

With the guidance of our supervisor we really enjoyed working on this project as it

was a great learning process with a team’s effort!

Problem Statement

Investors sometimes need to make sure that which company he should select to for safe

investment b/w the two famous brands to make sure his investment he really wants to interested

which Brand is more authentic to believe on, This research is based on Secondary Data collected

from the official websites of Nestle.pk and Engrofoods.pk for the purpose of comparison b/w the

two brands on the basis of sales and profit to evaluate which brand is more consistent and fast

growing the Market of Food products in Pakistan

Objective of Research

 To determine that which Brand is More Consistently Growing

Introduction of the project
This project is a analysis b/w the two popular brands in the Market of Pakistan one is Nestle and

the other is Engro-foods both brands are very well known brands and also very unique in producing

quality products, for comparison purpose we gathered the data from 2008-2009 the Sales figures,

profit margin, operating profit, profit before tax and profit after tax, we compare the data on the

basis of sales figures and gross profit separately to evaluate which brand is going more consistent

as well as generating more profit comparatively

Methodology of the project

Our project is based on the secondary data as we collected all the data (Sales figures, gross profit,

Operating, PBIT, PAT) from the official website of Nestle Pakistan and Engro-foods Pakistan,

than we performed Mean, Median, Standard deviation and coefficient of variance to calculate our

desired Results
Analysis

NESTLE PAKISTAN ANNUAL SALES

(Rupees
in million) 2013 2012 2011 2010 2009 2008

Trading Results

Sales 86,227 79,088 64,824 51,487 41,156 34,184

Gross
Profit 24,161 21,523 16,725 13,879 11,899 8,952

Operating
Profit 11,471 10,966 8,458 6,858 5,575 4,105

Profit
Before
Tax 8,113 7,978 6,503 5,696 4,186 2,227

Profit
After Tax 5,867 5,865 4,668 4,113 3,005 1,553
ENGRO PAKISTAN ANNUAL SALES

(Rupees in million) 2013 2012 2011 2010 2009 2008

Trading Results

Sales 37361 39662 29624 20933 14665 8173

Gross Profit 7642 9814 6364 4361 2716 1050

Operating Profit 2174 4823 2412 930 141 503

Profit Before Tax 508 3921 1363 270 656 857

Profit After Tax 211 2595 891 176 433 554

Sales
Comparison

Yearly Sales 2013 2012 2011 2010 2009 2008

Engro.pk 37361 39662 29624 20933 14665 8173
Nestle.pk 86,227 79,088 64,824 51,487 41,156 34,184
Mean Median Variance SD C.V
Engro.pk 25069.6667 25278.5 159124292.7 12614.45 0.503176
Nestle.pk 59,494 58155.5 433595483.5 20822.96 0.349999

Sales
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
2013 2012 2011 2010 2009 2008

Engro.pk Nestle.pk

Comments : By comparing the sales from 2008 to 2013 we can see that Nestle have a larger number
of sales as compare with Engro-foods which creates an impression that Nestle is more stronger than
Engro-Foods in the Market of Food Products in Pakistan
By comparing the Coefficient of variance of tow companies with a values of 0.50 for
engro and 0.34 for Nestle.pk we can conclude that Nestle.pk has a lower value of CV which means
that the company is performing more consistent than Engro.pk
Gross Profit
Gross Profit 2013 2012 2011 2010 2009 2008
Engro.pk 7642 9814 6364 4361 2716 1050
Nestle.pk 24,161 21,523 16,725 13,879 11,899 8,952
Mean Median Variance SD C.V
Engro.pk 5324.5 5362.5 10522186 3243.792 0.60922
Nestle.pk 16,190 15,302 33681200 5803.551 0.358469

Gross Proft
30000

25000

20000

15000

10000

5000

0
2013 2012 2011 2010 2009 2008

Engro.pk Nestle.pk

Comments:

By comparing the annual gross profit from 2008-2013 we can conclude that Nestle.pk is

generating more Profit as compare with Engro.pk

By Comparing the C.V of two companies with a resulted values of 0.60 and

0.35 for Nestle.pk and Engro.pk respectively we can conclude that Nestle is performing

more consistent than Engro.pk as it has a low value of C.V

Operating Profit
Operating 2013 2012 2011 2010 2009 2008
Profit
Engro.pk 2174 4823 2412 930 141 503
Nestle.pk 11,471 10,966 8,458 6,858 5,575 4,105

Operating Profit
14000

12000

10000

8000

6000

4000

2000

0
2013 2012 2011 2010 2009 2008

Engro.pk Nestle.pk

Mean Median Variance S.D C.V

Engro.pk 1830.5 1552 2967752 1722.716 0.941118
Nestle.pk 7,906 7,658 8671399 2944.724 0.372491

Comments:

Here we have the Operating Profit of Both of the companies and by comparing the Values

resulted against C.V of tow companies we can conclude that the consistency of Engro.pk

is very low as it has a value of 0.94 which means the company is not performing much

consistently as compare with its competitor Nestle.pk with a C.V value of 0.37.
Profit before Tax
Profit Before 2013 2012 2011 2010 2009 2008
Tax
Engro.pk 508 3921 1363 270 656 857
Nestle.pk 8,113 7,978 6,503 5,696 4,186 2,227

Profit Before Tax

9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2013 2012 2011 2010 2009 2008

Engro.pk Nestle.pk

Mean Median Variance SD C.V

Engro.pk 1262.5 756.5 1832864 1353.833 1.072343
Nestle.pk 5,784 6,100 5193687 2278.966 0.394023

Comments:
Here we have a chart of Profit before tax of the two companies on which Nestle.pk is have
a large amount of Profit after tax as well as a very low value on C.V which Indicates that
Company is more Strong and is Performing more Consistently than compare with it
competitor Engrofoods.pk
Profit after Tax
Profit After 2013 2012 2011 2010 2009 2008
Tax
Engro.pk 211 2595 891 176 433 554
Nestle.pk 5,867 5,865 4,668 4,113 3,005 1,553

Mean Median Variance SD C.V

Engro.pk 810 493.5 832241.6 912.2728 1.126263
Nestle.pk 4,179 4,391 2841914 1685.798 0.403446

Profit After Tax

7000

6000

5000

4000

3000

2000

1000

0
2013 2012 2011 2010 2009 2008

Engro.pk Nestle.pk

Comments:

Here we have the Profit after tax of two companies and by calculating the value for CV

for two companies we can see that value for Engro.pk is goes very high as 1.12 which

indicates a very poor consistency with respect to PAT where its Competitor Nestle.pk is

performing much better that it with C.V value of 0.40

LINE CHART

ENGRO PAKISTAN ANNUAL SALES

45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2013 2012 2011 2010 2009 2008

Sales

NESTLE PAKISTAN ANNUAL SALES

100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
2013 2012 2011 2010 2009 2008

Sales

Comments:

This line chart of Nestle.pk is going very smooth which indicates that company is growing very

consistently whereas the Line chart of Engrofoods.pk is not as much smooth as its Compactors

which indicates that the company is growing less consistently than that of this competitors

Nestle.pk
Conclusion
This Whole Project is basically a comparison of growing Consistency b/w two famous brands

Nestle.pk and Engro.pk in the market of Foods products in Pakistan, We wants to know that which

brand is performing more constant as well as generating more profit, we compare the selected

brands on following basis, Sales figures, Gross Profit, Operating Profit, Profit before Interest and

Tax and Profit After Tax, to determine how the selected brands perform each of the given figures,

Nestle.pk no doubt have a wide product line than compare with Engrofoods.pk therefore we do

not simply compare them on the basis of sales and gross profit figures to determine the consistency

of the brands rather we go for a Statistical technique Coefficient of variance (C.V) to determine

the growing and performance consistency so that larger sales figures of a company doesn’t effects

the results, our findings throughout the project is Nestle.pk has a lower number of CV value on all

the given aspects as Sales figures, Operating profit, PBIT and PAT, with the values of 0.349999,

0.358469, 0.372491, 0.394023, 0.403446 respectively whereas the Engrofoods.pk has a greater

amount of CV values which are 0.503176, 0.60922, 0.941118, 1.072343, 1.126263 which indicates

its poor consistency as compare with its competitor Nestle.pk, So Nestle.pk is more consistent

growing and authentic brand in the market of Foods products in Pakistan

References
http://www.nestle.pk/
http://www.engrofoods.com/