FINANCIAL DATA 2025 (PROJECTED)
1. Initial Investment & Setup:
-
Initial Purchase of Pigs:
The company will purchase 1,000 pigs to kickstart operations.
-
Initial Costs:
These initial pigs will start the breeding process, Typically, sows give birth to an
average of 12 to 16 piglets per litter, though well-managed sows can produce more than
16. For our calculations, we assume each pig delivers 10 piglets per cycle, consisting
of 8 females and 2 males.
2. Sow Productivity per Cycle:
-
First Cycle (from 1,000 pigs):
Each pig produces 10 piglets (8 females and 2 males). Total pig count:
10,000 (1,000 x 10 piglets)
Female Piglets (80%): 8,000 female
Male Piglets (20%): 2,000 male
-
Second Cycle (from 9,000 pigs):
After the first cycle, the 8,000 female piglets and the 1,000 original pigs will continue
breeding. Total pig count: 90,000 (9,000 x 10 piglets)
Female Piglets (80%): 72,000 female
Male Piglets (20%): 18,000 male
3. Total Pigs After 2 Cycles:
Total Female Pigs (After 2 Cycles): 80,000 female piglets
Total Male Pigs (After 2 Cycles): 20,000 male piglets
4. Revenue from Sales:
-
Male Pigs (100% sold):
All 20,000 male pigs are sold at $125 per pig: USD 2,500,000
-
Female Pigs (50% sold, 50% kept for production):
40,000 pigs will be sold at $125 per pig: USD 5,000,000
Total Revenue:
2,500,000 USD (from male pigs) + 5,000,000 USD (from
female pigs) = USD 7,500,000
5. Annual Food Cost for Pigs:
Labor Cost for Planting Feed:
We'll calculate the labor cost based on the necessary workers, the amount of land used for
planting (10 acres), and the labor involved in planting and maintaining the crops throughout
the year.
Total Labor Cost for Feed (First + Second Cycle):
20,000 USD (First Cycle) + 80,000 USD (Second Cycle) = USD 100,000 (Estimated)
6. Dividend Plan & Share Buyback:
-
Dividend Plan:
The company will pay a 10% dividend at the end of the year based on total revenue.
Dividend = 10% × 7,500,000 USD = 750,000 USD
The dividend will be distributed to shareholders based on their holdings.
-
100% Share Buyback Option:
The company can repurchase 100% of shares at
$1.50 per share.
Total Shares: 100,000 shares
Repurchase Amount: USD150,000
The company will buy back all shares at the specified price, using the revenue generated.
7. Financial Summary:
- Initial Purchase of Pigs: 1,000 pigs
-
Total Pigs After 2 Cycles: 101,000 pigs
-
Total Female Pigs (after 2 cycles): 80,000 pigs
-
Total Male Pigs (after 2 cycles): 20,000 pigs
- Revenue from Male Pigs: 2,500,000 USD
- Revenue from Female Pigs: 5,000,000 USD
- Total Revenue: 7,500,000 USD
- Annual Food Cost: 100,000 USD
- Operating Expense: 296,000 USD
- PBT (Profit Before Tax): 7,104,000 USD
- Taxation: Not stated
- NPAT (Net profit after tax): 7,104,000 USD
- Dividend to be Paid (10%): 710,400 USD
- Total Repurchase for Shares (100%): 150,000 USD
- BALANCE AVAILABLE CASH : 6,393,600 USD
CONCLUSION:
By the end of the year, Niugini Swine Farming Corporation will have a net cash flow of
6,393,600 USD, ensuring that the company is financially stable, can pay dividends to
shareholders, and can buy back 100% of the shares as planned. This cash flow will support
operations and provide funds for future growth.
At the start of the next cycle, the company will have 40,000 pigs for breeding. This
provides a solid foundation for continued growth, with a new cycle of breeding producing
more piglets, ensuring the sustainability of operations for the coming year.
This proposal demonstrates that the company’s operations are financially viable, and
the business model supports both the payment of dividends and the repurchase of shares
without impacting the company’s ability to grow and continue generating revenue.
FINANCIAL REPORTS
ESTIMATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2025
|
Category
|
Amount (USD)
|
|
|
Revenue
|
|
|
|
Revenue from Male Pigs (20,000 pigs sold)
|
$2,500,000
|
|
|
Revenue from Female Pigs (40,000 pigs sold)
|
$5,000,000
|
$7,500,000
|
|
Cost of Goods Sold (COGS)
|
|
|
|
Feed Preparation Costs
|
$100,000
|
($100,000)
|
|
Gross Profit
|
|
$7,400,000
|
|
Operating Expenses
|
|
|
|
Worker Salaries (10 workers + 5 management staff)
|
$210,000
|
|
|
Office Rental (3 locations)
|
$36,000
|
|
|
Pigs Purchase (1,000 pigs)
|
$50,000
|
($296,000)
|
|
EBITDA
|
|
$7,104,000
|
|
Interest Expense
|
|
-
|
|
Net Profit Before Tax
|
|
$7,104,000
|
|
Taxation
|
|
-
|
|
Net Profit After Tax
|
|
$7,104,000
|
Notes to the financial statement:
Capital Income and Share Transactions
-
Capital Raised from Share Issuance: $100,000
(100,000 shares sold at $1.00 per share)
-
Year-End Dividend Payment: 710,400
(10% dividend based on NPAT of $7,104,000)
-
Share Buyback Option: $150,000
(100% share buyback at $1.50 per share, using generated revenue)