Profit and Loss Costa Coffee

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About Costa/ Whitbread Whitbread is a global organisation who owns various food chains across the U.K, one of those chains are Costa Coffee. Costa Coffee financial statistics and rates always change whether it’s a decrease or increase their financial rates will never be static due to the economy and sales of costs. These aspects determine if Costa Coffee make a profit or a loss within their business. Within the line chart shown we will be looking at the sales, cost and profit whilst looking at the gross margin. Costs/ Revenue/ Profit The revenue of costa coffee has consistently increased from 2007 to 2011. As you can see from the line graph below, at 2007 the revenue was 1,173.50 then to 1,599.60 in 2011. The direct costs of Costa, which are the cost of sales, have also increased over the five years. While the gross profit has increased consistently, the gross profit margin has rapidly increased but after 2009 has gone down. Gross Profit ÷ Revenue x 100 = Gross Profit Margin Gross profit Margin The gross profit margin is the net sales minus the cost of goods and services sold, and is usually shown as a percentage of the turnover. This calculation shows how much money has been left over money from the revenues. Even though the gross profit has increased consistently the gross profit margin has rapidly increased but after 2009 has decreased after that Net Profit Margin Net profit margin tells you how much a company or business makes for every £1 produced in the sale in the company; the higher the company’s net profit margin is the better. To calculate the net profit margin a ratio of profitability calculated as net income is divided by revenues, or net profits divided by sales it tells you how much a business makes for every £1 produced in the revenue or sales within the company. The ways to calculate the Net profit margin is

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