Share
2,147 Posts.
lightbulb Created with Sketch. 140
clock Created with Sketch. 28/02/18
13:36
Share
Originally posted by Transversal
↑
Did you end up forecasting net EBITDA improvement in FY 19 from store closures in FY18, can’t recall? What was your maths? "In terms of what an achievable EBITDA margin could be, once the cost cutting process has been completed, I don’t think it will be anywhere near the 10% level it used to be, given the ongoing structural changes and challenges to the retail business model. But, simply operating reasonable cuts on Employee Benefits and Other Expenses (and considering that the closing down of shops will eventually reduce Rental Costs as well), a 100-200bp improvement to a 4%-5% margin looks eminently achievable to me. Thus, taking 4% as a more conservative margin estimate gives 560m$*4% = 22.4m$ EBITDA for FY2019 ."
Expand
This another point of failure along with closing stock forecast at 30 June 2018.
