Deutshe Brauerei Case

Executive Summary While Deutsche Brauerei seems to reserve had almost overnight mastery in Ukraine, financial statements show that this success has been strictly cosmetic. employ lax credit terms, Oleg Pinchuk has been able to report fast gross revenue offset yet seems unlikely to accumulate on some of the accounts. The focus on sales has draped the fact the Deutsche Brauerei is not very profitable and has been experiencing an annex in cost. Because of this, the connections value is actually declining. To rectify this situation, Deutsche Brauerei necessitate to focus on increasing profitability by natural cost and trim back dividends. Problem The current tasks lining the poster of directors be approving the compute for 2001, declaring the quarterly dividend and adopting a compensation scheme for Oleg Pinchuk. Before decision making whatever of this, the board must address some issues the company seems to be having. For one, if the company is operating as p rofitable as Oleg says, whence why argon they borrowing so sharply? The board also needs to determine if this rapid sales growth in Ukraine actually translates into higher profits or dividends. compendium When looking at the financial information provided by Oleg Pinchuk, Deutsche Brauerei seems to be in relatively good financial standings.

Sales get to been increasing modestly in Germany since 1997 and are projected to asseverate this trend into 2007. In 1998, the brewery began its expansion into Ukraine. In 2000, Ukrainian sales grew 47% and were project to grow 45% and 30% the avocation two years. Oleg projected total sales to grow 13% in 2002. Despite these positive increa ses in sales growth, I found some of the dat! a disconcerting. First, I noticed that break costs and expenses were increasing relative to sales. In 1997, production costs were 52% of sales and have been steadily climbing. Costs are expected to be up to 60% in 2002. Because of this increase in costs, shareholders equity is quickly declining. Equity accounted for 43%...If you apprehension to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay