Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 6

RetailStar Ros Target 2018

Global Pictures of Goods Purchase in


2018
In order to reach the target of
>4% of ROS, RS will decide
to invest in Asian Market, to
achieve a +10% in Revenues,
and to push the sales of
products with higher margin
(Grocery +2%,Frozen
+2%,Fresh +3%), and drop the
sell of H&C product (-5%)
and Household (-3%), and
keep Beverage at same %.
Total Purchase 30.195M€
RS next challenges
• Opening of new stores in Asia:
2018 NEW Superstores: +20  10MLN€/each
2018 NEW Department: +60  20MLN€/each

Total: 370 Superstores – 810 Department:


Total Stores Cost 15.500MLN€ (assuming stores operative from
1stJanuary 2018)

• Marketing Campaing:
3.850MLN€ in order to push the new Asian Market, RS will
invest an ammount of 7% the expected revenues value

• IT project for digitalization: 3.000MLN€

Corporate cost will increase of +3% compare to 2017 cost:


2.060MLN€
Depreciation & Non Manufacturing
Cost
New stores will generate a flat depreciation of 250MLN€ for 20 years.
On top of that, 750MLN€ depreciation from old Investment

Important: Depretiation from IT investment of 300MLN€ x 10 years


will start at the end of the project (assumed not in 2018)

Total Non Manufacturing Cost:


Marketing: 3.850MLN€
Corporate: 2.060MLN€
Depreciation: 1.000MLN€

TOTAL: 6.910MLN€
CAPEX SCENARIO 2018
Capex Budget
Total Value
MLN€ Lifetime Deprec. Cash Out
Year 2018 2019 2020
Old Depreciation 750
Store Investment 5.000 20 250 3.000 2.000 -
IT Investment 3.000 10 - 1.500 1.500 -
Total 8.000 1.000 4.500 3.500

Store Investment: 60% in 2018 – 40% in 2019

IT Investment: 50% in 2018 – 50% in 2019

Depreciation from IT investment of 300MLN€ x 10 years will start at the


end of the project (assumed not in 2018)

Total Investment Value: 8.000MLN€


Cash Out 2018: 4.500MLN€
Conclusion  TARGET ACHIEVE

With an EBIT of 2.395 ROS% will be 4,35%


(ROS=EBIT/REVENUES) so RS will achieve the target.

Important: such result will be possible only if depreciation of IT project will not start in
2018 otherwise 3,81%

You might also like