Complete Story
12/09/2013
Profitability Patterns in a Year of Strong Growth
An end-of-year analysis from Dr. Al Bates, Profit Planning Group
The latest annual analysis of distributor profitability has just been completed by the Profit Planning Group. It examines aggregate financial performance for thirty different lines of trade.
During 2012 (the last year for which complete information is available), distributors, as a group, enjoyed strong sales growth. However, that sales growth did not translate directly into higher profit. While profit was up slightly, the results were disappointing given the sales activity.
The following report review the key findings from the analysis. It must be kept in mind that on some factors comparisons across industries can be made easily. Sales growth, for example, can be compared directly. If one industry grows and another does not, it is a directly measurable factor.
