Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
METRO Cash & Carry Serbia Member of
ICV Serbia
KPI’s in Retail Industries
Belgrade
May 17th , 2013
METRO Cash & Carry Serbia Member ofPage 2
METRO GROUP
Retail vs. Manufacturing
Classification of KPI
Summary
CCC
Monitorin...
METRO Cash & Carry Serbia Member ofPage 3
The Driving Force in International Trade and Retail
An Overview of the Corpora...
METRO Cash & Carry Serbia Member ofPage 4
Retail vs. Manufacturing
METRO GROUP
Classification of KPI
Summary
CCC
Monitorin...
METRO Cash & Carry Serbia Member of
Short P&L details
Retailers are gaining profit on quantities
X Y
15% - 20% 50% - 55%
1...
METRO Cash & Carry Serbia Member ofPage 6
Classification of KPI
METRO GROUP
Retail vs. Manufacturing
Summary
CCC
Monitorin...
METRO Cash & Carry Serbia Member of
• Quantitative
KPI derived from Financial
Statements!
• Qualitative
KPI (derived by In...
METRO Cash & Carry Serbia Member ofPage 8
Monitoring P&L KPI’s
METRO GROUP
Retail vs. Manufacturing
Summary
CCC
Classifica...
METRO Cash & Carry Serbia Member of
Influence factors on Sales
METRO Cash & Carry Serbia Member of
Sales - Trading day shift (I)
Example: Day Effects of April 2013
Sales - Trading day s...
METRO Cash & Carry Serbia Member of
Bank Holiday effect = (Actual sales of weekday / Ø-sales of weekday) - 1
Choose months...
METRO Cash & Carry Serbia Member of
absolute
Net sales
% of sales
100,0%1.000
Merchandise purchase costs -95,0%-950
Invent...
METRO Cash & Carry Serbia Member of
Income: t0: 8,8% x 1.000 = 88 €
Margin
in % o.s.
t1: 10,2% x 1.300 = 132,6 € : 44,6 €
...
METRO Cash & Carry Serbia Member of
Example: Discount Impact
ABC Trading company has weekly sales of 500 € (quantity 500 w...
METRO Cash & Carry Serbia Member of
before discount after discount
20%=
gross profit 100
sales 500
gross profit 75
sales 4...
METRO Cash & Carry Serbia Member of
Example P&L
ACT
2009
M€
Net Sales
Gross Profit on Sales
Other Operating Income
Total I...
METRO Cash & Carry Serbia Member of
Cost efficiency indicators – Step Chart
METRO Cash & Carry Serbia Member ofPage 18
Summary
METRO GROUP
Retail vs. Manufacturing
Monitoring P&L KPI’s
CCC
Classific...
METRO Cash & Carry Serbia Member of
Selected sales, margin and cost related KPIs
METRO Cash & Carry Serbia Member ofPage 20
CCC
METRO GROUP
Retail vs. Manufacturing
Monitoring P&L KPI’s
Summary
Classific...
METRO Cash & Carry Serbia Member of
Cash Conversion Cycle (CCC) – Manufacturing Company.
The Cash Conversion Cycle refers ...
METRO Cash & Carry Serbia Member of
Cash Conversion Cycle (CCC) – Retail Company.
negative Cash Conversion Cycle (CCC)
= D...
Upcoming SlideShare
Loading in …5
×

1. ICV Kongres controllera Srbije 2013, Dragan Vještica, Head of Controlling, Metro

640 views

Published on

Dragan Vještica, Head of Controlling u Metro Cash and Carry, nam je govorio o KPI u retailingu. Postoje kvalitativni i kvantitativni KPI-evi. U kompanijam se više daje važnost kvantitativnim. Kvantitativni KPI-evi dolaze iz finansija. Najvažniji KPI za kompaniju je EBIT.

Published in: Economy & Finance
  • Making a living taking surveys at home! I have been a stay at home mom for almost 5 years and I am so excited to be able to still stay home, take care of my children and make a living taking surveys on my own computer! It's so easy to get started and I plan to make enough money each week so that my husband can actuallly quit his second job!!! Thank you so much!  https://tinyurl.com/vd3y33w
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

1. ICV Kongres controllera Srbije 2013, Dragan Vještica, Head of Controlling, Metro

  1. 1. METRO Cash & Carry Serbia Member of ICV Serbia KPI’s in Retail Industries Belgrade May 17th , 2013
  2. 2. METRO Cash & Carry Serbia Member ofPage 2 METRO GROUP Retail vs. Manufacturing Classification of KPI Summary CCC Monitoring P&L KPI’s
  3. 3. METRO Cash & Carry Serbia Member ofPage 3 The Driving Force in International Trade and Retail An Overview of the Corporate Structure Foundation of Corporate Culture Employer of some 280,000 People Around the World METRO A.G. METRO GROUP is one of the most important international retailing companies Fiscal Year 2012 Sales € 66.7 billion of which abroad € 41.1 billion (61.6 percent) Earning before Interest and Taxes (EBIT) € 1.4 billion Earning before Interest, Taxes, Depreciation, Amortization (EBITDA) € 3 billion Consolidated Netincome € 101 million Locations 2,243 Countries with METRO Presence 32 Number of Staff on Annual Average Total 282,989 Sales (bn): € 21.0 Countries: 17 Stores: 942 Cross functional companies Hypermarkets Sales (bn): € 11.0 Countries: 6 Stores: 421 Self-service wholesale Sales (bn): € 31.6 Countries: 29…. Stores: 744 Sales (bn): € 3.1 Countries: 2 Stores: 137 Consumer electronic stores Department stores
  4. 4. METRO Cash & Carry Serbia Member ofPage 4 Retail vs. Manufacturing METRO GROUP Classification of KPI Summary CCC Monitoring P&L KPI’s
  5. 5. METRO Cash & Carry Serbia Member of Short P&L details Retailers are gaining profit on quantities X Y 15% - 20% 50% - 55% 13% - 19% 40% - 45% 1% 15% 1.5% - 3.5% 10% - 13% Suppliers and customers Method of reporting earnings is the same Product costing vs. Trading Goods Low cost vs. “Investing in sales” EBIT is main KPI for measuring Company’s performance
  6. 6. METRO Cash & Carry Serbia Member ofPage 6 Classification of KPI METRO GROUP Retail vs. Manufacturing Summary CCC Monitoring P&L KPI’s
  7. 7. METRO Cash & Carry Serbia Member of • Quantitative KPI derived from Financial Statements! • Qualitative KPI (derived by Interviews, Monitoring, Surveys, etc.) like customer satisfaction or employee attitude Classification of KPI Number of NSO
  8. 8. METRO Cash & Carry Serbia Member ofPage 8 Monitoring P&L KPI’s METRO GROUP Retail vs. Manufacturing Summary CCC Classification of KPI
  9. 9. METRO Cash & Carry Serbia Member of Influence factors on Sales
  10. 10. METRO Cash & Carry Serbia Member of Sales - Trading day shift (I) Example: Day Effects of April 2013 Sales - Trading day shift Do we earn more sales on Wednesdays or Saturdays? Sales of Tuesday will contribute to 2013 instead sales of Sunday Ortodox Easter in 2012 leads to additional Sunday in 2013 In 2012 two Big effects in April: Easter and 1st of May
  11. 11. METRO Cash & Carry Serbia Member of Bank Holiday effect = (Actual sales of weekday / Ø-sales of weekday) - 1 Choose months for individual periods Serbia April April Country Start month End month Sum effect abs. 2012: Holiday effect * Average weekday sales in 2012 Sum effect abs. 2013: Holiday effect * Average weekday sales in 2012 Combined effect (Day constellation & Bank Holiday effect) Day constellation Change to PY in %P = ((36.9 / 37.4) - 1) x 100 April = -1.4 in % to PY when operative performance is 0 2012: Actual sales 2013 (simulated): Sum of Ø-sales per weekday per month in 2012 •Problem 1: Holidays do sometimes not affect the whole country. •Problem 2: Holidays do in some countries not indicate closed stores. •Problem 3: Bridge days do sometimes compensate potential sales losses (especially food). •Problem 4: No time period shifts (e. g. Easter effects). Sales - Trading day shift Calculation example 2 1 3 4 Day effect for given period: Day effects 2012 2013 Sum of Ø sales Sum effect abs. Sum m€ 46.9 57.6 -9.5 -20.7 37.4 36.9 -1.4%
  12. 12. METRO Cash & Carry Serbia Member of absolute Net sales % of sales 100,0%1.000 Merchandise purchase costs -95,0%-950 Inventory discrepancies -0,5%-5 Change in write down -0,4%-4 Statistical gross profit 4,1%41 Bonus Cash discount Merchandising allowances Slotting fees Opening fees Synergies Transport reimbursement Disposal reimbursement ... 2,0% 2,9% 5,5% 0,8% 0,3% 1,5% 0,4% 0,3% 0,1% 20 29 55 8 3 15 4 3 1 Later reimbursement total 13,8%138 Total result 17,9%179 „Head-Terms“, direct related to the article Not traceable to article Income – Overview Costs of goods sold
  13. 13. METRO Cash & Carry Serbia Member of Income: t0: 8,8% x 1.000 = 88 € Margin in % o.s. t1: 10,2% x 1.300 = 132,6 € : 44,6 € 10,2% Margin-related variance: Sales-related and margin- related variance: (10,2% - 8,8%) x 1.000 = €14 8,8% t0 Sales-related variance: t1 (10,2% - 8,8%) x (1.300 -1.000) = 4,2 (1.300 – 1.000) x 8,8% = €26,4 1.000 Sales 1.300 Calculation of income variances Income Variance
  14. 14. METRO Cash & Carry Serbia Member of Example: Discount Impact ABC Trading company has weekly sales of 500 € (quantity 500 with a price of 1 €). The gross profit margin is 20%. For one week there is a special promotion campaign which is offering 5% discount. What is the necessary quantity growth to reach the same gross profit as before? MADE TO TRADE. Retail Key Figures. Financial Management Training June 2012 | © METRO AG 2012 21
  15. 15. METRO Cash & Carry Serbia Member of before discount after discount 20%= gross profit 100 sales 500 gross profit 75 sales 475 =15,79% GP(old) = GP(new) 100 = 100 GPM(old) * sales(old) = GPM(new) * sales(new) 20% * 500 = 15,79% * x when sales(old) = 1 then when sales(old) = 1 then sales(new) = GPM(old) / GPM(new) 1,266 = 20% / 15,79% To reach the same gross profit, sales have to grow by +26,6%. gp(old) * quantity(old) = gp(new) * quantity(new) 0,2 * 500 = 0,15 * x quantity(new) = gp(old) * quantity(old) / gp(new) x = 0,2 * 500 / 0,15 x = 666,6 666,6 / 500 = 1,333 Accordingly the quantity has to grow by +33,3%. Example: Discount Impact
  16. 16. METRO Cash & Carry Serbia Member of Example P&L ACT 2009 M€ Net Sales Gross Profit on Sales Other Operating Income Total Income Personnel Expenses Depreciation Advertising Expenses Leasing Expenses Maintenance Other Costs Other operating Expenses Total Costs EBIT 1.297 327 4 331 -47 -14 -6 -45 -6 -78 0 -195 135 %o. S. 100,0 25,2 0,3 25,5 -3,6 -1,1 -0,5 -3,4 -0,5 -6,0 0,0 -15,1 10,4 M€ 1.465 362 4 366 -58 -14 -9 -48 -8 -88 1 -224 142 ACT 2010 %o. S. 100,0 24,7 0,3 25,0 -4,0 -1,0 -0,6 -3,3 -0,6 -6,0 0,1 -15,3 9,7 Dev. 2010 vs. 2009 M€%o. S. 168 35 0 35 -11 0 -3 -3 -2 -10 1 -29 6 13,0 10,8 -6,3 10,6 -24,6 -2,8 -41,6 -7,9 -31,1 -12,6 --- -14,6 4,7 Sales rel. Dev.: 25,5% * 168 = 43 Margin rel. Dev.: (incl. Mix effect) 35-43 = -8 Cost efficiency indicators
  17. 17. METRO Cash & Carry Serbia Member of Cost efficiency indicators – Step Chart
  18. 18. METRO Cash & Carry Serbia Member ofPage 18 Summary METRO GROUP Retail vs. Manufacturing Monitoring P&L KPI’s CCC Classification of KPI
  19. 19. METRO Cash & Carry Serbia Member of Selected sales, margin and cost related KPIs
  20. 20. METRO Cash & Carry Serbia Member ofPage 20 CCC METRO GROUP Retail vs. Manufacturing Monitoring P&L KPI’s Summary Classification of KPI
  21. 21. METRO Cash & Carry Serbia Member of Cash Conversion Cycle (CCC) – Manufacturing Company. The Cash Conversion Cycle refers to the number of days, the capital is “locked” in the company. The shorter the better. Cash Conversion Cycle (CCC) – Manufacturing Company.
  22. 22. METRO Cash & Carry Serbia Member of Cash Conversion Cycle (CCC) – Retail Company. negative Cash Conversion Cycle (CCC) = DIO + DSO - DPO •The Cash Conversion Cycle of a retail company is ideally negative. •The retailer pays his bill after the customer has bought the product. Cash Conversion Cycle (CCC) – Retail Company.

×