Jul 29, 2002 14:58
21 yrs ago
English term
profit growth holiday
English
Bus/Financial
Changing our organisational focus from a “returns” (“profit growth”) to a “sales growth” business with a +20% increase in brand investment funded by a one year profit growth holiday by XXX
Responses
23 mins
Selected
taking a break from taking profit achieved through growth
At least that's how I read it.
In other words, XXX decided not to take their profit for a whole year (the "profit growth holiday") in order to invest the profit (or "to invest the difference between the usual profit and the profit achieved through growth").
In other words, XXX decided not to take their profit for a whole year (the "profit growth holiday") in order to invest the profit (or "to invest the difference between the usual profit and the profit achieved through growth").
4 KudoZ points awarded for this answer.
Comment: "OK,
thank you very much. After further investigations, I succeded to solve the contraddictions in the source."
+2
9 hrs
Petra Molenaar
Experienced interpreter/legal translator
Native in: Dutch (Variant: Netherlands)
Works in: Dutch, English to Dutch, Dutch to English, and 1 more.
Related KudoZ points
:
11
explanation
Instead of focussing on increasing the amount of profit (sales less cost of sales) the company for the next year will concentrate on increasing the sales (and by doing so, also the ultimate profit).
20 hrs
not increasing profit margins
Companies need/want to show profit increases each year, this keeps shareholders and attracts new ones.
Profit Growth is the difference between one years profit margin and the subsequent years margin and to take a 'holiday' would mean that they will stop concentrating on increasing the profit margin from last year and use what would have been their 'profit growth amount' to reinvest in brand named products.
Ergo shareholders will receive dividends equal to last year and should not expect an increase.
Profit Growth is the difference between one years profit margin and the subsequent years margin and to take a 'holiday' would mean that they will stop concentrating on increasing the profit margin from last year and use what would have been their 'profit growth amount' to reinvest in brand named products.
Ergo shareholders will receive dividends equal to last year and should not expect an increase.
Discussion