FINANCIAL PLANNING STRATEGY

Evidence 1
STRATEGIC DECISION MAKING BASED
ON THE PREPARATION OF PROFORMA
FINANCIAL STATEMENTS

Alessandra Leija A01285219

Lucía Valero A01285455
Santiago Pulido A00836264
Stephanie Sauceda A01285345
Mariana Arena A00573863
Agustin Alvarez A01067364
 FINANCIAL PLANNING STRATEGY

Alfa Industrial Group

ALFA, tracing its roots to late 19th-century Monterrey, Mexico, and
incorporated officially in 1974, oversees a diverse global portfolio.
Notable subsidiaries include Sigma for food products, Alpek in
polyester production, Nemak in automotive components, Alestra
in telecom and IT services, and Newpek in energy (Source: Alfa
Conoce Nuestro Grupo Empresarial Mexicano, 2023). Initially
comprising Hojalata y Lámina, Empaques de Cartón Titan, and
Draco, Alfa navigated 1980s economic challenges through debt
restructuring. Despite hurdles, the company expanded globally
and into various industries, becoming a significant business group.
Recent emphasis on modernization, global expansion,
sustainability, and social responsibility culminated in a 2022
transformation, prioritizing subsidiary independence and financial
strength.
 Mission:
To be a source of pride for our people and shareholders, and to
exceed the expectations of our target audiences through
FINANCIAL PLANNING leadership, innovation and outstanding long-term performance.
STRATEGY

Vission: Commitments to our relevant stakeholders:

Mission & Shareholders: To achieve outstanding long-term value creation through

profitable growth, optimization of our portfolio and selective investment in

Vission
new opportunities.
Employees: To be a great company to work for. Attract and develop the
best talent and motivate them to reach their full potential.
Customers: Exceed their expectations through superior experiences and
innovative offerings.
Suppliers: Develop long-lasting relationships based on mutual benefit.
Community: Promote safe and sustainable operations. Contribute to the
development of our communities.
(Alfa, 2023)
Income Statement
Analysis
Balance Sheet
Analysis
Balance Sheet
Analysis
 Sales
Growth

Explain how you obtain the % in sales growth projected for the next three years.

In this case, we got the sales of 2022 from the income statement, so to get the prediction of sales growth in the
3 following years, we had to search for the expected growth of the food industry. According to information
provided by Statista, “Revenue in the Food market amounts to US$9.36tn in 2023. The market is expected to
grow annually by 6.74% (CAGR 2023-2028).” (Statista, n.d.).

To calculate the years 2023, 2024 and 2025, we used the percentage of the compound annual growth rate of
the food market. In the case of 2023, the sales of 2022 were multiplied by the addition of 1 and 6.47%, giving a
result of $388,388.43, in the case of 2024, the expected sales of 2023 were multiplied by the addition of 1 and
6.47%, giving a result of $414,565.81. Lastly, to get the expected sales of 2025, the expected sales of 2024 were
multiplied by the addition of 1 and 6.47%, and that gave a result of $442,507.55.
Income Statement
Projected
Balance Sheet
Projected
Balance Sheet
Projected
 FINANCIAL PLANNING
STRATEGY

Conclusions and
comments
Income Statement Analysis
We can see that in the Income statement the sales have a constant increase of 6.74%
each year (2023, 2024 and 2025).
Our net profit is also growing 4.52% through the 3 years.

Balance Sheet Analysis

We can see that there is an increase in total assets, total liabilities and total equity.
 FINANCIAL PLANNING
STRATEGY

Conclusions and comments

Balance sheet analysis
We can see that in the Income statement the sales have a constant increase of 6.74% each year (2023, 2024 and 2025).
Our net profit is also growing 4.52% through the 3 years.

Total assets increased by 2.36%.

Cash and cash equivalents decreased 29.59%.
Accounts receivable increased by 6.89%.
Inventories increased 22.72%.
Capital expenditures increased by 2.154%.

Alfa's cash and cash equivalents could be increased to strengthen its liquidity position.
Alfa's debt could be reduced to improve its financial structure.
Alfa's accounts receivable turnover could be improved to increase cash flow.

Income Statement Analysis

We can see that there is an increase in total assets, total liabilities and total equity.
Net income increased 121%.
Gross profit margin increased 2.11%.
Financial position strengthened.

The company could reduce its selling and administrative expenses.

The company could increase its operating efficiency
The company could diversify its revenues
 References:
Food - Worldwide. (n.d.). Retrieved November 24, 2023, from https://0-www-statista-com.biblioteca-
ils.tec.mx/outlook/cmo/food/worldwide
Conoce a Alfa, un grupo empresarial diversificado ☑️. (2023, June 2). ALFA L Grupo Empresarial Mexicano.
https://www.alfa.com.mx/nuestra-
compania/#:~:text=Atraer%20y%20desarrollar%20el%20mejor,Promover%20operaciones%20seguras%20y%
20sustentables.
‌Conoce nuestro grupo empresarial mexicano. (2023, October 27). ALFA L Grupo Empresarial Mexicano.
https://www.alfa.com.mx/
Grupo Industrial Alfa > Información, Biografia, Archivo, Historia. (2013). WIKIDAT.
https://es.wikidat.com/info/grupo-industrial-alfa