United Spirits (MCDOWE)
UB Group is an Indian conglomerate company headquartered in UB City, Bangalore in the state of Karnataka, India. Its core business includes beverages, aviation and investments in various sectors. The company markets beer under the Kingfisher brand, and owns various other brands of alcoholic beverages. It is India's largest producer of beer with a market share of around 52.5% by volume.
United Breweries now has greater than a 40% share of the Indian brewing market with 79 distilleries and bottling units across the world. Recently, UB financed a takeover of the spirits business of the rival Shaw-Wallace company, giving it a majority share of India's spirits business. The group also owns the Mendocino Brewing Company in
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estimated 6238 crore.
• Net Revenues grew 3% (YoY) & 22% QoQ to 2494 crore vs. estimated 2254 crore. The lower growth was witnessed as a result of higher Excise Duties.
• Volumes for the quarter fell 5% (YoY) to 24.5 million cases vs. the estimate of 23.1 million cases.
• Volumes for Prestige & Above (P&A) segment grew 5% (YoY) to 10.1 million cases.
• Volumes for the regular/popular segment fell 11% (YoY) to 14.4 million cases and now contribute 59% (vs. 63% in Q3FY16) to overall volumes.
• Renovation of Signature, McDowell’s No.1 whisky and Royal Challenge continue to provide momentum to overall volumes for P&A segment.
• Popular volumes in priority states grew 3% thanks to McDowell’s No 1. Rum, Bagpiper, Director’s Special and Hayward’s.
• Gross margins for Q3FY17 rose 300 bps driven by positive price/mix fuelled by price rise in select states (Maharashtra & Karnataka), strong performance of P&A segment and productivity initiatives.
• An improvement in the operational performance was noticed with the EBITDA Margins expanding 70 bps YoY (160 bps QoQ) to 11.8% vs. the estimate of
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Diageo has now decided to focus on 14 power brands, which include 3 main brands of Diageo – Johnnie Walker, VAT 69 & Smirnoff. Over the next 3 years, Diageo plans to focus on these 14 power brands in order to improve realisations from them.
Cost Reduction & Profit Expansion
EBITDA margins in FY 2011 – 15 declined by approximately 728 bps. This was because of an increase in the cost of ENA (mentioned earlier). However, following this, a rise in the margins was also witnessed by 200 bps, owing to price hikes. These margins were invested in the rebranding and positioning of the brands.
Accordingly, it is expected that a rise in the EBITDA will be seen. This is also felt as USL has gone in for backward integration with glass plants in Andhra Pradesh. This coupled with other operational efficiencies will lead to a cost reduction of up to 33%.
In addition, USL is working towards shutting down the low margin units in Malkajgiri, Andhra Pradesh and Palakkad, Kerala, contemplating entering into a franchise based model (like the one in Tamil Nadu). Similar model is followed by competitor Pernord Ricard, whose EBITDA grew @ 47% from 2007 – 13
(against 17% for USL) & average EBITDA margin was 25% (against 16.50% for
In the low commodity price environment, EOG remains grounded in terms of reduction in operating as well as capital expenditure. After having reduced its cash operating costs per unit by 17% in 2015, the company plans to additionally lower its cash operating costs in 2016 through a mixture of costs efficiencies improvements. For instance, the company during the first-quarter of 2016, secured a long-term brackish water supply, which is expected to save them approximately
Giant Consumer Products In the case of Giant Consumer Products, Inc. (GCP), the background of this supermarket’s performance, specifically in the Frozen Foods Division (FFD), is reviewed and applied to promotional marketing decisions. Presented by Harvard Business School in 2012, Giant Consumer Products: The Sales Promotion Resource Allocation Decision provides a comprehensive overview of GCP’s overall financial stature, with insights into its FFD including industry and company context, promotional planning, execution, and allocation (Bharadwaj & Delurgio, 2012). In pursuit of further analysis, GCP’s case background can be reviewed and summarized by conducting a situational analysis, determining the core issues, evaluating alternative solutions, and providing concluding
Coles Supermarket Australia Pty Ltd is an Australian supermarket, owned by Wesfarmers. It is commonly known as Coles and was founded on 9th April 1914 in Smith St, Collingwood, Victoria. Till now, Coles has operated over 700 stores throughout Australia and employs over 100,000 employees. It controls 35% of Australian supermarket industry. Coles was founded when George James Coles opened the Coles Variety Store on the street in Melbourne.
The pumps that the Wilkerson company produces are the “bread and butter” of this company. These products are produced at a high rate with a high price competition. As stated earlier, due to the severe price cutting by the competitors, the pre- tax margin of the company dropped extremely low to 3% percent and gross margin to 19.5%. Another product that the company produces are valves. The valves have remained steady around its planned gross margin of 35% with actual of 34.9%; these products are sold and shipped in huge bulk.
INTRODUCTION “The moment you make a mistake in pricing, you 're eating into your reputation or your profits.” - Katharine Paine The above quote from the founder of KDPaine & Partners LLC and The Delahaye Group is quite apt. Pricing is quite often ignored by executives & leads to people not understanding how it can change the competitive game in an industry.
Metro’s profit margin is also about double the percentage of Loblaws which demonstrates that Metro is better at taking revenue and turning it into profit than Loblaws. This company’s net earnings had a large increase of 12.9% from the previous year. The profit margin is important for shareholders because it shows them that the company is efficient and profitable. In addition, food deflation should ease in the next quarters so this will help grocery retailers, like Metro, to increase their profits and
Return on Equity increased from 10.98% to 15.39%, showing that the firm is more profitable than before. Earnings per Share increased as well, as there were less shares outstanding with the repurchase while net income was unaffected. EPS increased from $0.91 to $1.04, another indicator that the leverage increased profitability. With the repurchase, Blaine’s D/E ratio increased, going from not having any debt at all to a D/E ratio of 11.48%, which is more inline with industry competitors. PE ratio fell as a result of the leverage.
What insight is provided by the new profitability analysis? What should Alice, Inc. do to enhance its profitability? What options may be available? Analyze the profitability of the two products
Information technology has become increasingly important to major corporations around the world. Specifically, how people within those corporations use information technology to better understand business information. An organization that has benefited from the combination of information, people, and information technology is Anheuser-Busch. For more than 160 years, Anheuser-Busch and its world-class brewmasters have carried on a legacy of brewing America’s most-popular beers. Starting with the finest ingredients sourced from Anheuser-Busch’s family of growers, every batch is crafted using the same exacting standards and time-honored traditions passed down through generations of proud Anheuser-Busch brewmasters and employees.
This, joined with its great cash-flow, has driven the board to suggest an entire year profit increment of 19.9%. This amplifies its reputation of double digit development, with sales growing by 11.4% in the course of the most recent five years and EPS and dividend per share becoming by 14.7% and 13.5% respectively. (Whitbread Investors,
Kraft Heinz Case Study Executive Summary Problem Statement The focal problem that Kraft Heinz Company (KHC) faces is the decrease in demand of packaged-foods, while trying to increase revenue. Analysis This analysis studies Kraft Heinz Company’s strategy, competitive position in the market, problems being faced, and the company’s financials.
Danielle Walker, an American female is the president and CEO of Training Management Corporation (TMC). Founded in 1985, the company was built to deliver practical consulting and solutions that meet and have the ability to turn multicultural business environment to be able to overcome operational challenges. TMCorp help companies worldwide distinguish similarities and differences in its work environment and help to maximize performance to reduce risk, with this done, innovations then can be enhanced with the most effective way. The company headquarters is situated in United States, regional offices in Singapore to serve Asia-Pacific and in Belgium to serve Europe, Middle East and Africa.
Introduction The company selected for this research is McDonald’s Australia Holdings, a patented public company in Australia. The company specializes in food and beverage products such as burgers, coffee, sandwiches, McCafe beverages, and soft drinks, among others. The primary activity of the company, which generates most of its revenues from food and beverage services, entails establishing and operating a chain of family restaurants that offer quick services throughout Australia. While the company owns and runs a smaller number of the McDonald’s Australia Holdings’ restaurants, a larger number of the restaurants is owned and ran by franchisees, who shell out the company’s service fees and rent (Buchan, 2012). The 2013 annual revenue of the
Moreover, although the sales turnover of Unilever Plc has decreased, the operating profit and net profit still remain increased. The most highlighted part of this assignment is Unilever
The company markets some of South Africa’s iconic liquor brands,98 brands under