Cafes Monte Bianco

Harvard Business School Case #198-088

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Exhibit 1 Cafes Monte Bianco's 2000 Financial Statements (estimated as of December 15, 2000)

Note: 1 U.S. dollar = 1,800 Italian

Income Statement for the year ending December 31, 2000

(thousands of Italian liras)

Revenues 56,112,408
Private brand 9,934,848
Premium brand 46,177,560

Costs of goods sold (*) 33,233,867

Gross margin 22,878,541

Marketing expenses 4,155,980

R&D expenses 3,328,130
Selling expenses 3,574,710
Administrative expenses 4,752,000
Interest expense 3,825,000

Profits 3,242,721
Taxes (40%) 1,297,089
Net profit 1,945,632

(*) includes 2,593,700 depreciation

Balance Sheet at December 31, 2000

(in thousands of Italian liras)

Assets Liabilities and Shareholders' Equity

Cash 1,121,450 Accounts payable 487,331

Raw material inventory 2,907,963 Credit line 25,000,000
Finished goods (174,000 kg.) 1,148,400
Accounts Receivable 9,368,467 Long term debt 10,000,000
Shareholders' Equity 9,165,869
Property, plant and equipment (*) 42,374,000
Depreciation (12,267,080)

44,653,200 44,653,200

(*) includes vacant land with a cost of 13,000,000

 Projected Income Statement for the year ending December 31, 20
(thousands of Italian liras)

Revenues
17
82

Costs of goods sold (*)

41 Gross margin

7.4 Marketing expenses

$ 6 R&D expenses
6 Selling expenses
8% Administrative expenses
Interest expense

Profits
Taxes (40%)
Net profit

(*) includes 2,993,700 depreciation

he year ending December 31, 2001 Costo variable
Costo fijo
depreciacion
52,800,000

Depreciation 2000 $ 2,593,700

Costo capacidad $ 6,000,000
42,918 Depr anual $ 2,993,700
52,757,082 18%
Dep mensual $ 249,475

832,033 832032.5
1,251,149 1251148.5
2,376,000 2376000
3,825,000 3825000 Dep
$ 8,284,181
52,757,082

-1,397,381
$ 39,600,000,000
$ 3,319,500,000
$ 2,993,700,000
$ 45,913,200,000
Exhibit 2 Estimated Yearly Volume (in kilograms) for Different Prices / Grades and Advertising Expenditures

Coffee Grade D C B BB A AA AAA

Price per kilogram 8,800 19,500 26,600 30,000 35,500 39,000 42,600

VOLUME (kg.)
Advertising /Sales
0% 6,000,000 2,395,000 1,645,000 1,529,000 1,103,000 667,000 127,000
1% 2,455,000 1,696,000 1,566,000 1,145,000 717,000 157,000
2% 2,545,000 1,720,700 1,649,000 1,226,000 799,000 229,000
3% 2,665,000 1,896,000 1,760,000 1,334,000 910,000 325,000
4% 2,800,000 2,024,000 1,884,000 1,456,000 1,034,000 433,000
5% 2,950,000 2,166,000 2,022,000 1,591,000 1,172,000 553,000
6% 3,130,000 2,367,000 2,157,000 1,723,000 1,307,000 667,000
7% 3,196,000 2,417,000 2,195,000 1,792,000 1,345,000 694,000
8% 3,268,000 2,446,000 2,231,000 1,823,000 1,366,000 752,000
9% 3,310,000 2,465,000 2,258,000 1,837,000 1,495,000 875,000
10% 3,340,000 2,494,000 2,286,000 1,843,000 1,523,000 935,000
$ 52,800,000,000
$ 42,918,000,000

$ 9,882,000,000
Exhibit 3 Estimated Cost per Unit for Different Prices / Grades and Volume

Coffee Grade D C B BB A AA AAA

Prices per kilogram 8,800 19,500 26,600 30,000 35,500 39,000 42,600

Unit cost (liras) 6,600 12,485 14,275 16,288 17,791 19,166 20,441
Fixed costs (thousands of li 3,319,500 4,100,500 4,100,500 4,100,500 4,100,500 4,100,500 4,100,500

Volume COST PER UNIT

400,000 14,899 22,736 24,526 26,539 28,042 29,417 30,692 $ 11,216,800,000 $ 14,200,000,000
600,000 12,133 19,319 21,109 23,122 24,625 26,000 27,275 $14,775,000,000 $ 21,300,000,000
800,000 10,749 17,611 19,401 21,414 22,917 24,292 25,567 $18,333,600,000 $ 28,400,000,000
1,000,000 9,920 16,586 18,376 20,389 21,892 23,267 24,542 $21,892,000,000 $ 35,500,000,000
1,200,000 9,366 15,902 17,692 19,705 21,208 22,583 $25,449,600,000 $ 42,600,000,000
1,400,000 8,971 15,414 17,204 19,217 20,720 22,095 $29,008,000,000 $ 49,700,000,000
1,600,000 8,675 15,048 16,838 18,851 20,354 21,729 $32,566,400,000 $ 56,800,000,000
1,800,000 8,444 14,763 16,553 18,566 20,069 $36,124,200,000 $ 63,900,000,000
2,000,000 8,260 14,535 16,325 18,338 19,841 $39,682,000,000 $ 71,000,000,000
2,200,000 8,109 14,349 16,139 18,152 $ -
2,400,000 7,983 14,194 15,984 17,997 $ -
2,600,000 7,877 14,062 15,852 $ -
2,800,000 7,786 13,949
3,000,000 7,707 13,852 $14,200,000,000
3,200,000 7,637 13,766 $ 11,216,800,000
3,400,000 7,576 13,691 $ 2,983,200,000
6,000,000 7,153

* Fixed costs for premium coffees include private brand fixed costs.
 Coffee Grade D C B BB A AA
Prices per kilogram 8,800 19,500 26,600 30,000 35,500 39,000

Unit cost (liras) 6,600 12,485 14,275 16,288 17,791 19,166

Margen 2,200 7,015 12,325 13,712 17,709 19,834

$ 2,983,207,840
$ 6,525,000,000
$ 10,066,400,000
$ 13,608,000,000 Coffee Grade D C B BB A AA
$ 17,150,400,000 Prices per kilogram 8,800 19,500 26,600 30,000 35,500 39,000
$ 20,692,000,000
$ 24,233,600,000 Unit cost (liras) 6,600 12,485 14,275 16,288 17,791 19,166
$ 27,775,800,000 Fixed costs (thousands 3,319,500 4,100,500 4,100,500 4,100,500 4,100,500 4,100,500
$ 31,318,000,000
Volume margen por unidad
400,000 -2,439,500 -1,294,500 829,500 1,384,300 2,983,100 3,833,100
600,000 -1,999,500 108,500 3,294,500 4,126,700 6,524,900 7,799,900
800,000 -1,559,500 1,511,500 5,759,500 6,869,100 10,066,700 11,766,700
1,000,000 -1,119,500 2,914,500 8,224,500 9,611,500 13,608,500 15,733,500
1,200,000 -679,500 4,317,500 10,689,500 12,353,900 17,150,300 19,700,300
1,400,000 -239,500 5,720,500 13,154,500 15,096,300 20,692,100 23,667,100
1,600,000 200,500 7,123,500 15,619,500 17,838,700 24,233,900 27,633,900
1,800,000 640,500 8,526,500 18,084,500 20,581,100 27,775,700
2,000,000 1,080,500 9,929,500 20,549,500 23,323,500 31,317,500
2,200,000 1,520,500 11,332,500 23,014,500 26,065,900
2,400,000 1,960,500 12,735,500 25,479,500 28,808,300
2,600,000 2,400,500 14,138,500
2,800,000 2,840,500 15,541,500
3,000,000 3,280,500 16,944,500
3,200,000 3,720,500 18,347,500
3,400,000 4,160,500
 6,000,000 9,880,500

* Fixed costs for premium coffees include private brand fixed costs.

$32,023,800,000
AAA
42,600

20,441
$231,549

22,159
$ 3,960,000 osto variable
$ 3,319,500 Costo fijo

$ 7,279,500
AAA
42,600

20,441
4,100,500 5,280,000

-1,999,500
4,763,100
9,194,900
13,626,700
18,058,500

649800

$ 231,549
$ 231,549
Exhibit 4 Sales During 2000 Exhibit 4 Plan de produccion 2001

Sales Private Sales Premium Percent of

Year 2000 (kilograms) (kilograms) Total Year 2001

January 81,792 84,916 7.1% January

February 103,680 107,640 9.0% February
March 135,936 141,128 11.8% March
April 86,400 89,700 7.5% April
May 93,312 96,876 8.1% May
June 57,600 59,800 5.0% June
July 48,384 50,232 4.2% July
August 38,016 39,468 3.3% August
September 78,336 81,328 6.8% September
October 150,912 156,676 13.1% October
November 139,392 144,716 12.1% November
December 138,240 143,520 12.0% December

1,152,000 1,196,000 100.0%

it 4 Plan de produccion 2001

Producción Producción Ventas Inventario

Capacidad Privada Premium ventas Privada Premium Privada

500,000 372,768 127,232 298,768 127,232 74,000

500,000 338,720 161,280 378,720 161,280 34,000
500,000 288,544 211,456 322,544 211,456 0
500,000 365,600 134,400 315,600 134,400 50,000
500,000 354,848 145,152 340,848 145,152 64,000
500,000 410,400 89,600 210,400 89,600 264,000
500,000 424,736 75,264 176,736 75,264 512,000
500,000 440,864 59,136 138,864 59,136 814,000
500,000 378,144 121,856 286,144 121,856 906,000
500,000 265,248 234,752 551,248 234,752 620,000
500,000 283,168 216,832 509,168 216,832 394,000
500,000 284,960 215,040 504,960 215,040 174,000

6,000,000.00 4,208,000.00 1,792,000.00 4,034,000.00 1,792,000

Ventas 35,499,200,000 63,616,000,000 99,115,200,000

costos 26,624,400,000 31,881,472,000 4,100,500,000

4,208,000
27,772,800,000
Inventario Ventas
Premium Proyectadas 2001

0 426,000.00
0 540,000.00
0 534,000.00
0 450,000.00
0 486,000.00
0 300,000.00
0 252,000.00
0 198,000.00
0 408,000.00
0 786,000.00
0 726,000.00
0 720,000.00

5,826,000.00 97%

66,730,248,000
2,993,700,000 65,600,072,000

1,130,176,000
1,148,400
174,000

1,148,400,000
Exhibit 5 Dino's Production Plan for Private Brand Only

Production Inventory Sales 2000 Actual cashflow

Capacity Private Private Private Sales Percent Marcas Privadas
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dic
Initial Inventory 174,000
January 500,000 500,000 248,000 426,000 7.1% 3,748,800.000 Abr Balance 1,121,450.000 4,223,348.871 1,684,592.062 - 864,099.595 - 526,173.012 577,353.571 3,792,880.154 4,012,006.737 4,547,933.320 3,447,059.903 1,923,786.486 - 74,686.931
February 500,000 500,000 208,000 540,000 9.0% 4,752,000.000 May
March 500,000 500,000 - 708,000 11.8% 6,230,400.000 Jun Entradas:
April 500,000 450,000 - 450,000 7.5% 3,960,000.000 Jul Privada 1,301,465.088 1,202,116.608 1,192,181.760 3,748,800.000 4,752,000.000 6,230,400.000 3,960,000.000 4,276,800.000 2,640,000.000 2,217,600.000 1,742,400.000 3,590,400.000
May 500,000 486,000 - 486,000 8.1% 4,276,800.000 Ago Premium 5,541,307.200
June 500,000 390,000 90,000 300,000 5.0% 2,640,000.000 Sep Total 6,842,772.288 1,202,116.608 1,192,181.760 3,748,800.000 4,752,000.000 6,230,400.000 3,960,000.000 4,276,800.000 2,640,000.000 2,217,600.000 1,742,400.000 3,590,400.000
July 500,000 500,000 338,000 252,000 4.2% 2,217,600.000 Oct
August 500,000 500,000 640,000 198,000 3.3% 1,742,400.000 Nov Salidas:
September 500,000 500,000 732,000 408,000 6.8% 3,590,400.000 Dic Costos 3,300,000.000 3,300,000.000 3,300,000.000 2,970,000.000 3,207,600.000 2,574,000.000 3,300,000.000 3,300,000.000 3,300,000.000 3,300,000.000 3,300,000.000 3,300,000.000
October 500,000 500,000 446,000 786,000 13.1% 6,916,800.000 Ene I&D 69,336.042 69,336.042 69,336.042 69,336.042 69,336.042 69,336.042 69,336.042 69,336.042 69,336.042 69,336.042 69,336.042 69,336.042
November 500,000 500,000 220,000 726,000 12.1% 6,388,800.000 Feb Gastos de ventas 104,262.375 104,262.375 104,262.375 104,262.375 104,262.375 104,262.375 104,262.375 104,262.375 104,262.375 104,262.375 104,262.375 104,262.375
December 500,000 500,000 - 720,000 12.0% 6,336,000.000 Mar gastos administrativos 198,000.000 198,000.000 198,000.000 198,000.000 198,000.000 198,000.000 198,000.000 198,000.000 198,000.000 198,000.000 198,000.000 198,000.000
Gastos financieros 318,750.000 318,750.000 318,750.000 318,750.000 318,750.000 318,750.000 318,750.000 318,750.000 318,750.000 318,750.000 318,750.000 318,750.000
6,000,000 5,826,000 - 6,000,000 100.0% 52,800,000 Total 3,990,348.417 3,990,348.417 3,990,348.417 3,660,348.417 3,897,948.417 3,264,348.417 3,990,348.417 3,990,348.417 3,990,348.417 3,990,348.417 3,990,348.417 3,990,348.417

Depresiación 249,475.000 249,475.000 249,475.000 249,475.000 249,475.000 249,475.000 249,475.000 249,475.000 249,475.000 249,475.000 249,475.000 249,475.000
3300000
4,223,348.871 1,684,592.062 - 864,099.595 - 526,173.012 577,353.571 3,792,880.154 4,012,006.737 4,547,933.320 3,447,059.903 1,923,786.486 - 74,686.931 - 225,160.348
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2010 2011 2012 2013 2014 2015
COEFICIENTE DE LIQUIDEZ

1.Coeficiente Circulante Activo circulante /pasivo circulante 3.07 2.31 1.60 2.46 3.54 2.92 (coeficiente superior a 1 indica liquidez)

COEFICIENTES DE CAPITALIZACION

2.Apalancamiento Financiero (Pasivo total + patrimonio) / patrimonio 2.10 2.36 2.93 2.85 2.33 2.41 superiores a 2 indica un amplia utilizacion extensiva de la deuda

3.Deuda a largo plazo a capital Deuda a largo plazo /(pasivo+patrimonio) 30% 29% 22% 33% 37% 33% (superior al 50% indica alto nivel de deuda)

COEFICIENTES DE ACTIVIDAD

4.Rotación de activos por periodo Ventas / activos totales 1.36 1.24 1.16 1.23 1.32 0.94 eficiencia con que la empresa utiliza la totalidad de los activos)

5. Rotacion de las existencias por periodo coste de los vienes vendidos/ existencias mantenidas durante el period 2.32 Rotaciones por año

6.Ventas diarias de existencia Existencias finales / (coste de mercancia vendida / 365 ) 157.5335 Días (velocidad con la que se estan utilizando las existencias de la empresa)

COEFICIENTES DE RENTABILIDAD

7. Rendimiento de las ventas (ROS) Beneficio Neto / Ventas 0.044 0.040 0.053 0.074 0.120

(ROA) Beneficio Neto / Activos 0.05901184 0.0497 0.06204 0.0911 0.1583826

8. Rendimiento del capital (ROE) Beneficion Neto / Patrimonio 12.4% 11.7% 18.2% 26.0% 37.0%

EBITA