Food & Beverage Retail - Realising Growth

We helped a food and beverage retailer to develop a
3yr financial and operational growth model.

Client Situation

  • Our client is an internationally recognised brand operating within food and beverage retail

  • Australian operations are locally-owned and are supported by more than 1,000 employees across a national network of stores

  • The client was looking to significantly expand its store network within Australia, and had identified a set of FY25 metrics as the company’s ambition

  • Our client required assistance to develop a dynamic driver-based financial growth model to determine the roadmap for the FY23-25 period in order to meet the FY25 ambition

Our Approach

  • We worked with management to understand the key economic drivers of the business and link the financial model to operational levers

  • By reviewing historical store performance we developed a baseline view of performance

  • We interviewed functional leads to identify FTE and support services required to deliver the store network expansion and benchmarked this against the brand’s performance in other regions

  • We built a detailed driver-based financial model (weekly) to model P&L and cashflows

  • We explored key sensitivities and evaluated a number of different scenarios

Outcome

  • Our modelling provided a roadmap for the business to achieve its FY25 ambition, including a stretch case which delivered additional value

  • Our sensitivity analysis provided management with a view of the key risk and opportunity areas

  • The model is now able to be used by management as a ‘flight simulator’ to analyse the impact of operational initiatives and changing assumptions

  • The 3yr roadmap informed the next year’s detailed budget, and both artefacts were presented to and endorsed by the Board

Darren McGowan