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Luca

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2

Calculation of sales planning and gross profit planning

Hey! I would like to know why the sales planning is EUR 501.5m here? How is this calculated?

And for gross profit planning, I think we should use the sales planning number as the basis to multipy gross margin. Why do we use the EUR 590m which is a current year number?

Many thanks!

Hey! I would like to know why the sales planning is EUR 501.5m here? How is this calculated?

And for gross profit planning, I think we should use the sales planning number as the basis to multipy gross margin. Why do we use the EUR 590m which is a current year number?

Many thanks!

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Hello Yaxin,

I will try to make it clear for you. For the sales planning of the next yea, you can consider:

  • Sales of the last fiscal year = 660M€
  • Termination of production and sale of cat lavatories: -70M€ (table 3)
  • Adjustment of the product portfolio removing products <5€ : 15% * 590M€= 88.5M€ (Diagram 1)
  • Sales of next year = 660 - 70 - 88.5 = 501.5 M€

Regarding the gross profit planning, you use the 590M€ just to multiply it by the percentage that you have in diagram 1, in order to calculate the volume. It's enough not to consider the cat lavatories and the artciles <5€ to have the answer for the next year.

Does it make sense?Feel free to text me for any urther question.

Best,
Luca

Hello Yaxin,

I will try to make it clear for you. For the sales planning of the next yea, you can consider:

  • Sales of the last fiscal year = 660M€
  • Termination of production and sale of cat lavatories: -70M€ (table 3)
  • Adjustment of the product portfolio removing products <5€ : 15% * 590M€= 88.5M€ (Diagram 1)
  • Sales of next year = 660 - 70 - 88.5 = 501.5 M€

Regarding the gross profit planning, you use the 590M€ just to multiply it by the percentage that you have in diagram 1, in order to calculate the volume. It's enough not to consider the cat lavatories and the artciles <5€ to have the answer for the next year.

Does it make sense?Feel free to text me for any urther question.

Best,
Luca

Hey Luca! Thanks for your answer. I think it does help me understand it better. I am just wondering why we can't use 501.5 M€ as the basis for the second question to multiply it by the margin. — Yaxin on Apr 26, 2020

Because those margins refer to the 590M€ basis, pm me if it's still not clear — Luca on Apr 26, 2020

Yeah quite clear now. Thanks a lot! — Yaxin on Apr 26, 2020

Hi Yaxin,

I agree with Luca

Best,

André

Hi Yaxin,

I agree with Luca

Best,

André