A sample Profit & Loss statement is depicted in Figure 1.
Figure 1 – Annual Report – Sample P&L Statement
The Profit & Loss statement shows the evolution over time of your financial results, at the offering or company level (at later stage). Each row of the brand P&L statement is explained in the table below.
|
Revenues |
Number of units sold x Average price. |
|
Cost of goods
sold |
Number of units sold x Unit production cost. The unit cost depends on the characteristics of your product as well as of the levels of services and distribution offered by your company. |
|
Gross contribution |
= Revenues – COGS |
|
Marketing expenditures |
The investments made in specific communications actions aimed at building or increasing your brand awareness in the targeted customer segments. |
|
Geographical
expansion |
The total cost of your sales force, including salaries and other benefits. These expenditures depend on your geographical expansion. |
|
Contribution after Marketing |
= Gross contribution – (Marketing + Sales force expenditures). |
|
Product Development |
The investments made in R&D for product development. |
|
Other costs
|
This includes the general & administrative costs (% of revenues) as well the costs of the Corporate Projects launched during the past years. |
|
EBIT |
= Contribution after marketing – R&D – Other costs |