Understanding Profit & Loss
Every Outlet works to a Budget which has been set for the financial year. Our financial year runs from start Octoberto end September. Theses figures are then phased over 13 x 4 weekly Periods depending on time of year, key datesand local/national events. The end date of each Period is shown at the top of the P&L.
This band of figures shows our actual 4 weekly take (less vat) for the periods
These figures are our “Gross Profit” [Sales (less vat) -Cost of Sales] from the take above.Calculated by 1. X 6.
This shows all our Managerial Costs [i.e. Employment Costs, Energy, Entertainment &Promotions, Uniforms, Taxis, Crockery, Cleaning Materials…etc] which eat away our Gross Profit in2. [A full breakdown of which can be found on the reverse of theP&L]
This shows our “Managerial Profit” [Gross Profit -Managerial Costs] from the 4 weeks take in 1.Calculated by 2. -3.
Managers are bonusedon this figure if ahead of Budget come the end of the financialyear as well asreceiving 2% of these totals every Quarter
These are the Budget figures for the year phased over 13 Periods. What MAB would like you totake and spend
These percentages are based against actual Sales in line 1.
This column tells us how we are doing for the “latest Period” against Budget for that Period in 5.and how we are doing compared to last year for the same Period
.This column tells us how we are doing for “all Periods to date” against all the same Period Budgetsin 5. And how we are doing compared to all the same Periods thistime last year
Note:Figures that are in (brackets) mean you are behind sales or overspent to budget except on page 2 or the reverse sheet of the P&L where a(bracket) here would indicate you have made a saving or had a credit !Abbreviations:PD or Pd = Period Bud = BudgetLY = Last YearCum = Cumulative (running total)VAR = Variance