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Bakery Business Financial Analysis
Bakery Business Financial Analysis
Bakery Business Financial Analysis
in Nigeria
INTRODUCTION: As far as the development of the rural and urban areas in Nigeria is concerned, the role
of small and medium-scale enterprises (SMEs) cannot be underestimated. SMEs contribute to the
provision of employment opportunities and reduction in poverty in the country. One such enterprise
with a great prospect is bakery which produces foods such as bread (a staple), pie, buns and rolls.
Information gathered from the Association of Master Bakers and Caterers of Nigeria (AMBCN) has it that
over 1 million people are gainfully employed in the bread sub-sector of the industry both directly and
indirectly. Thus, funding the establishment of small-scale bakeries in Nigeria as part of a human
empowerment scheme will go a long way to reducing poverty in the country. Hence, the need to
undertake cost and revenue analysis to ascertain the viability of such an enterprise.
Table 1.0
Qty: 6 6 6 6 6 6 6 6 6 6 6 6
Price 280 280 280 280 280 280 280 280 280 280 280 280
/
unit:
Amoun 168 168 168 168 168 168 168 168 168 168 168 168
t 0 0 0 0 0 0 0 0 0 0 0 0
Table1.2
# Year 0 Year 1
Revenue - 20,160,000
Operating expenses - (3,137,500)
Machinery - (3,396,600)
Building + Rent - (180,000)
Other expenses - (4,100,000)
Total operating expenses - (10,814,100)
EBITDA - (9,345,900)
Depreciation - (509,490)
Net profit/(Loss) - 836,410
EBITDA Margin, % - 46.4%
It is expected that when sales or demand increases, the cost of production will also increase.
TRAINING BUDGET
Organizing a training program for this empowerment scheme will equip beneficiaries with the
right skills to succeed after establishing their enterprises.
In this regard, a training budget has been created to ensure the smooth operation of the bakery
business training program. The training will be delivered to a cohort of 100 individuals in 12
modules indicating each stage in bread baking as enumerated below:
1. Scaling ingredients by using a formula expressed in baker’s percentages to ensure
consistency and uniformity of production.
2. Determination of the appropriate temperature of mixture and mixing of ingredients
into a smooth, uniform dough.
3. Bulk (primary) fermentation in the absence of oxygen (anaerobic reaction) using yeast.
4. Folding/punching to increase the strength of the gluten and de-gas the dough.
5. Diving the dough into desired portions by either mechanical or manual method.
6. Preshaping or rounding of dough into more consistent shapes.
7. Benching to allow the pieces to rest
8. Makeup and panning the dough into its final shape
9. Proofing (final) for final fermentation
10. Baking in the hot ovens and cooling the breads before packing
11. Storing to prevent starch retrogradation
12. Securing more funding for your bakery business
Target Group: Unemployed graduates and other less-privileged members of the society
Period of Training: 4 hours/day for 10 days
Mode: Group training
Requirements:
2 subject matter experts to administer the training (2 hours each per day)
Hall to host the training
Public address system
Writing materials
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Equipment for practical demonstration
Welfare (snacks and soft drinks)