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OBJ Revenue v Cash - Worked Example, page-5

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Pman

2,226 Posts.

236

04/02/18

10:48

Post #: 30802648
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Originally posted by Pman ↑

Couple of points.
Regardless of what is manufactued recall 800k units nanufactured. This does not equate to like for like in royalties. Royalties are only paid on sold to stores not what sits in the pg warehouse.

Calculating a royalty for one country is easy if they own the rights and pay direct. Takes about a week. But when you are consolidating the world position each country reports to head office. They have a week to 15 days to finalise. Then group consolidates. This takes about another week. Then and only then can a royalty process begin. They don't only pay obj there are hundreds to prepare cross check and get approved. 45 days is a good term.

Again olay and sk2 will do their own so that explains why there was two payments.

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Let me add that unless obj knows what is being manufactured by pg it can't accurately work out what the royalty would be on as each unit booster or wsnd has very different wholesale value.

OBJ Price at posting: 3.6¢ Sentiment: Buy Disclosure: Held
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