Company Analysis: United Colors of Benetton

7. Overall, the increase in net loss was primarily due to the lower-than-expected sales price and the increase in both marketing and fulfillment expenses.

The next 3 years witnessed a continuous increase in sales and revenues. Their profit margin increased to reach 4.97% by year 1992.

• For the year ended December 31, 2004, un-audited Revenue was $1.06 billion up by $196.4 million over 2003’s revenue of $863.6 million. However, the airline reported a Net Loss of $17.2 million, down from Net Earnings of $60.5 million in 2003.

In conclusion, the factors related to Oval production and sales are the main factor s for the decrease in income.

profits in that year. In 2002 they had started a branding campaign which improved Lexan’s reputation outside the

So while the company increased its net income, it has done so with diminishing profit margins.

Although the company made strategy through original cost system, it is still unclear why the profit was declining. Might be some problem when the company was allocating the cost on both lines, and the methods to allocate will route a wrong strategy for the company.

Profitability ratios decreasing from 2005 to 2006 although the sales has increased substantially and the net income as well but not in the same percentage of increase due to the high reliance on debt as the interest expense increased as mentioned before.

Increase in the profits above the actual budget can be attributed to 20% increase in sales in 2009. Although Jean’s profits were above the actual budget, French Division’s earnings were much lower than what it could have been, had they budgeted for the actual volume of sales that they ended up selling. We can partly attribute this decrease in earnings to the fact

The Net profit margin increased in 2001 and 2002 but declined sharply in 2003 and even further in 2004.

During the period 2012 and 2013, the Operating profit margin decreased from 9.2% to 5.7%. This slight decline can be attributed to the decreased revenues and the increase in tax expenses.

There is no significant increase or deduction in terms of financial performance. There is a slightly downturn showing in the franchising sales revenue from 5.19bn to 5.08bn contributed by almost the same amount of outlets. Basic earnings per share have increased from 21.78c to 23.75c whilst a decrease of 2c in dividend per share compared with 2010.

3. The deterioration in profitability resulted from a decrease in cost of goods sold as a percentage of sales, and from a decrease in operating expenses as a percentage of sales. The only favorable factor was the decrease in the income tax paid.

According to the financial statement, during 2015-2017, Burberry were making profit in the three year however the firm had a drop in the net profit constantly. In 2015, the profit for the year was 341.1m, it was down by 7.77% to 314.6m in 2016 and it

significant drop in the revenues for third quarter of 1999. Annual revenues for 1999 were US$ 150