Net Sales Of Brannigan WW

Net Sales of US Division

2011
7330
3034

2012
7979
2973

1669
425

1635
416

189
236
625
315
1.14
0.45
0.79
2123

178
238
627
295
1.14
0.45
0.79
2080

Less:
COGS
Marketing, Selling, R&D expenses
Marketing Expenses Breakup:
Ads & promotions
R&D
Other expenses
Net Earnings
Wholesale price/can for RTE
Gross Profit Margin/can for RTE
COGS per RTE can
Best case volume of cans in core products (in millions)

2013
8230
2913

2014
2855

2015
2798

1602
408

1570
400

1539
400

170
238
600
303
1.14
0.45
0.79
2038

162
237.49
572.85
312.09
1.14
0.45
0.79
1997

155
244.80
537.79
321.45
1.14
0.45
0.79
1957

worst case scenario where sales continue to decline by 2% pa

best case profits grow by 3% yoy

Net Sales Of Brannigan WW

Net Sales of US Division

2011
7330
3034

2012
7979
2973

1669
425

1635
416

189
236
625
315
1.14
0.45
0.79
2123

178
238
627
295
1.14
0.45
0.79
2080

Less
COGS
Marketing, Selling, R&D expenses
Marketing Expenses Breakup:
Ads & promotions
R&D
other expenses
Net Earnings
Wholesale price/can for RTE
Gross Profit Margin/can for RTE
COGS per RTE can
volume of cans in core products (in millions)

2013
8230
2913
1602
408

2013 Tipha estimate

8230
2954
0
1660
426

170
238
600
303
1.14
0.45
0.79
2038

188
238
571
297
1.14
0.40
0.81
2038

Net sales declining at 0.006% per year

products GPM advocated by tipha<45%

Net Sales Of Brannigan WW

Net Sales of US Division

2011 2012 2013 2014 2015

7330 7979 8230 8230 8230
3034 2973 2913 2855 2798

less:
COGS
Marketing,selling,R&D expenses
Marketing Expenses Breakup:
Ads & promotions
R&D
other expenses
Net Earnings
Desired earnings
Wholesale price/can for RTE
Gross Profit Margin/can for RTE
COGS per RTE can
volume of cans in core products (in millions)

1669 1635 1602 1570 1539

425 416 408 406 406
189
236
625
315
1.14
0.45
0.79
2524

178
238
627
295
295
1.14
0.45
0.79
2455

170
238
600
303
304
1.14
0.50
0.76
2507

169
237
600
278
313
1.14
0.55
0.74
2513

168
238
600
253
322
1.14
0.55
0.74
2435

average sales of target companies

average cost of acquisition

22
22.53333

best case scenario expenses do not rise even after acquiring company

increase by 10% in two years

Net Sales Of Brannigan WW

Net Sales of US Division

2011 2012 2013 2014 2015

7330 7979 8230 8230 8230
3034 2973 2929 2894 2866

less:
COGS
Marketing,selling,R&D expenses
Marketing Expenses Breakup:
Ads & promotions
R&D
other expenses
Net Earnings
Desired earnings
Wholesale price/can for RTE
Gross Profit Margin/can for RTE
COGS per RTE can
volume of cans in core products (in millions)

1669 1635 1602 1570 1539

425 416 431 425 426
189
236
625
315
1.14
0.45
0.79
2524

178
238
627
295
295
1.14
0.45
0.79
2455

188
243
635
273
304
1.24
0.45
0.86
2178

188
237
635
276
313
1.24
0.45
0.86
2144

188
238
635
278
322
1.24
0.45
0.86
2110

increment in net sales without cannibalization

upto $12M incremental earnings from 2013

Net Sales Of Brannigan WW

Net Sales of US Division

2011 2012 2013 2014 2015

7330 7979 8230 8230 8230
3034 2973 3122 3278 3442

increment in net sa

less:
COGS
1669 1635 1717
Marketing,selling,R&D expenses
425 416 447
Broken Out of mkting & selling exp
Ads & promotions
189 189 209
R&D
236 238 238
other expenses
625 627 649
Net Earnings
315 295 309
Desired earnings
295 304
Wholesale price/can for RTE
1.14 1.14 1.08
Gross Profit Margin/can for RTE
0.45 0.45 0.45
COGS per RTE can
0.79 0.79 0.75
volume of cans in core products (in millions) 2123 2080 1800

1803 1893
446 447
209
237
681
347
313
1.08
0.45
0.75
2000

209
238
716
386
322
1.08
0.45
0.75
2534

increment in COGS at
as

increment in other ex

increment in net sales at private label growth rate @ 5%

increment in COGS at @ 5% disregarding increased efficiency, volumes &

assuming constant material prices

increment in other expenses at @ 5% disregarding gain due to efficiency and scale

Scenario Number
Worst Case Net Earnings
0
Status Quo (desired earnings after 2013)
1
Tipha S
2
Claire M
3
Chong A
4
Pugh B

2011
315
315
315
315
315

2012
295
295
295
295
295

2013
303
297
303
273
309

since core products of scenario 4 are mature products, we need new disrupting flavors in market. In
growth is costly. Therefore we should softly push in house developed products along with core prod
scenario 4. Free samples with purchases of core products may help while taking care of limited shelf

go with scenario 4 core products along with softly promoting scenario 3 products to have strong produ
for future

2014
312
278
276
347

2015
321
253
278
386

ng flavors in market. Inorganic

ts along with core products of
ng care of limited shelf space.

ts to have strong product lineup