Deutshe Brauerei Case

Executive Summary While Deutsche Brauerei seems to reserve had almost all-night mastery in Ukraine, financial statements show that this success has been rigorously cosmetic. employ lax credit terms, Oleg Pinchuk has been able to report fast gross revenue issue yet seems unlikely to gain on some of the accounts. The focus on gross sales has dissemble 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 involve to focus on increasing profitability by mooring cost and trim back dividends. Problem The current tasks go about the placard of directors be approving the compute for 2001, declaring the quarterly dividend and adopting a compensation scheme for Oleg Pinchuk. Before decision making either of this, the board must address some issues the company seems to be having. For one, if the company is operating as pr ofitable as Oleg says, and then why are they borrowing so sharply? The board also needs to determine if this rapid sales growth in Ukraine actually translates into higher profits or dividends. analytic thinking When looking at the financial information provided by Oleg Pinchuk, Deutsche Brauerei seems to be in relatively good financial standings.

Sales founder been increasing modestly in Germany since 1997 and are projected to go along 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 merriment two years. Oleg projected total s ales to grow 13% in 2002. Despite these posi! tive additions in sales growth, I found some of the data disconcerting. First, I noticed that lessen 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 emergency brake to get a full essay, order it on our website: BestEssayCheap.com

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