Case Author: Andrew Grigolunovich, CFA, CFM, FMVA
Case 3 - MECC Round 2 - Fall 2022: D
Financial Model
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2022: Down to EBITDA
del
Down to EBITDA
Inputs and Assumptions
1. General Assumptions
General
Company Name: [Name] Sweets, Candies and More, Inc.
Model Start Date [Date] 1-Jan-23
3. Product Mix, Sales and COGS - 2022 Actuals
Product Mix List Price Units Sold Raw Materials
[$/Unit] [# of Units] [$/Unit]
A Candy a Day Keeps Your Dentist Busy 11.49 60,443 3.60
Big Bar of Chocolate 14.54 98,407 5.18
Candies in a Box 17.78 91,122 6.96
Double Delight 21.08 23,562 7.33
Extra Large Box of Sweets 28.50 28,909 10.66
4. Sales by Channel - 2022 Actuals and Forecast
Retail Chain Volume Share'22 Discount Shipping
[%] [%] [% of List Price]
Food Tigers 10.74% 9.00% 2.31%
Gain A Lot 16.53% 12.00% 1.89%
Hostco 6.61% 7.50% 2.55%
I-Mart 5.81% 7.00% 1.75%
Joe's A Trader 5.77% 7.00% 3.08%
K-Smart 9.92% 9.00% 2.38%
Liddle 16.53% 12.00% 1.96%
Mega 9.09% 9.50% 3.08%
No Target 14.05% 10.50% 2.42%
Other Stores 4.95% 2.00% 2.45%
New Sales Channels 0.00% 7.00% 2.50%
5. Annual Assumptions
Item 2023 2024 2025
List Price Increase [% p.a.] 10.00% 7.00% 5.00%
Sales Volume Growth [% p.a.] 25.00% 15.00% 10.00%
Payroll Inflation [% p.a.] 10.00% 7.00% 5.00%
Energy Inflation [% p.a.] 100.00% 0.00% -25.00%
General Inflation [% p.a.] 7.00% 5.00% 3.00%
wn to EBITDA
ts and Assumptions
2. Overhead Expenses - 2022 Actuals
Item
Manufacturing Overhead [$] 357,911
Marketing [% of Net Sales] 2.50%
Sales Expenses [% of Net Sales] 4.00%
G&A Expenses [$] 511,237
G&A Expenses - Minimum [% of Net Sales] 7.50%
Direct Salaries Energy Packaging
[$/Unit] [$/Unit] [$/Unit]
1.90 1.00 0.20
2.15 1.52 0.25
2.47 1.55 0.31
3.30 2.20 0.55
4.71 3.72 0.50
Volume Growth'23+
[% p.a.]
1.90%
1.40%
0.40%
1.30%
0.70%
1.40%
4.00%
2.00%
1.10%
1.90%
n.a.
2026 2027 2028 2029 2030 2031 2032
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
5.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Sweets, Candies and More, Inc. Financial Model
Period Start
Period End
Period #
1 P&L Summary
Gross Sales [$]
Discount [$]
Net Sales [$]
Raw Materials [$]
Direct Payroll [$]
Energy [$]
Packaging [$]
Shipping [$]
Manufacturing Overhead [$]
Total COGS [$]
Gross Profit [$]
Marketing [$]
Sales Expenses [$]
G&A Expenses [$]
Total SG&A [$]
EBITDA [$]
EBITDA Margin [%]
1-Jan-23 1-Jan-24 1-Jan-25 1-Jan-26 1-Jan-27 1-Jan-28
31-Dec-22 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26 31-Dec-27 31-Dec-28
0 1 2 3 4 5 6
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
- - - - - - -
1-Jan-29 1-Jan-30 1-Jan-31 1-Jan-32
31-Dec-29 31-Dec-30 31-Dec-31 31-Dec-32
7 8 9 10
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
0 0 0 0
- - - -
