ARMSTRONG BUSINESS VALUATIONS PTY LTD
BENCHMARKS - JOHN MITCHELL PHARMACY, COBAR NSW
Total Sales
Stock turn (COGS / Closing Stock)
Total Sales have been consistent over the
review period, but not growing in line with CPI.
$3,000,000
$2,500,000
Stock turn has been near the Low (green line) to
High (yellow line) Industry Benchmark range
over the last 3 periods.
12.0
10.0
For the Future Maintainable Earnings (FME)
calculation on page 11 and 12-13 the Three
Year Weighted Average Total Sales level has
been used.
$2,000,000
$1,500,000
$1,000,000
$500,000
2017
2018
-
Ann 2019
2017
Gross Profit to Sales (Gross Margin)
Gross Margin has been somewhat inconsistent
over the review period, with the lower margin
achieved in financial year 2018 offset by the
higher Gross Margin achieved in the recent
interim period, which may be attributed to cut-
off/timing issues.
35%
30%
25%
20%
2018
2018
Ann 2019
Total Wage and Oncost Expense to Sales
40%
2017
4.0
2.0
See page 5 for further discussion.
$0
8.0
6.0
Ann 2019
For the FME calculation on page 11 and 12-13,
the Three Year Weighted Average Gross Margin
has been used. See page 5 for a detailed
discussion.
20%
Wages and Oncosts have been relatively
consistent but high over the last 3 periods.
15%
10%
5%
0%
2017
2018
Ann 2019
For the FME calculation on page 11 and 12-13,
Wages and Oncosts in line with a Fair Wage
Assessment has been used and the result of
13.6% leaves the indicator sitting above the mid-
point of the Low (green line) to High (yellow line)
Industry Benchmark range.
See further discussion on page 5.
The final FME estimate of 36.1% leaves the
indicator sitting near the High (yellow line)
Industry Benchmark.
Total Rent and Property Expenses to Sales
Adjusted EBITDA to Sales
Occupancy costs have been growing over the
last 2 periods.
6%
5%
For the FME calculation on page 11 and 12-13
Occupancy Costs based on straight-line
annualised financial year 2019 have been used
and the result of 3.5% leaves the indicator sitting
near the mid-point of the Low (green line) to
High (yellow line) Industry Benchmark range.
4%
3%
2%
1%
0%
2017
2018
Ann 2019
25%
Adjusted EBITDA to Sales has varied with Gross
Margin over the last 3 periods.
20%
The FME Adjusted EBITDA calculation on page
11 and 12-13 has settled at 17.4%, which is
above the High (yellow line) Industry
Benchmark.
15%
10%
5%
0%
2017
See page 5 for further discussion.
2018
Ann 2019
Key
High Benchmark
Low Benchmark
Actual
Increased at CPI
(c) Armstrong Business Valuations Pty Ltd
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