FBE case 1 write-up

FBE case 1 write-up - HPLs historical financial performance...

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HPL’s historical financial performance has been steadily increasing for the past five years. As displayed in exhibit 1, revenue has increased from $503.4 in 2003 to $680.7 in 2007. However, in spite of the yearly increasing revenue, due to an unusually high cost of goods sold in 2005, the net income decreased this year. This has occurred because of an increase in inventory as well as an increase in current liabilities. Additionally, in 2005 and 2007 the company spent more than they earned, but this had little effect on the company’s continuous success. As seen in exhibit 2 as well, the company’s unit share and dollar share steadily increased minimally from 2005 to 2007. Unit share increased from 21% to 21.3%, while dollar share increased from 15.7% to 16.1%. Similarly, US sales increased in HPL’s Target Markets for skin care, oral hygiene, personal hygiene, and hand and body care from 2003 to 2007, making the package more appealing to the company. With HPL’s sales into its retail channels increasing from 2003 to
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This note was uploaded on 02/12/2010 for the course FBE 421 taught by Professor Plotts during the Spring '07 term at USC.

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