Retail & Consumer Insights: 2014 Financial Benchmarking

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08/26/2014 by Retail & consumer
Retail & Consumer Insights: 2014 Financial Benchmarking

At a glance

What impact did the economy have on the financial results of retailers and consumer packaged goods companies? This report from PwC's Retail and Consumer Insights series provides financial benchmarks and discusses company strategies on operational efficiency, human capital, health and wellness, innovation, and brand management.

This edition of the Retail and Consumer Insights series focuses on the financial performance of consumer packaged goods (CPG) companies in 2013. The report provides financial benchmarking results for 111 food, beverage and consumer products industry manufacturers, as well as for 51 retailers. In this report, we discuss how the economy impacted CPG manufacturers and provide detailed financial benchmark analyses.

Our benchmarks included a range of metrics for growth, returns, income statements, liquidity, and balance sheet results. We analyzed companies by size (small, medium, large, and very large), sector (beverage, food, and household products), and source of primary revenues (domestic and global).  We also analyzed how CPG manufacturers performed against CPG retailers, with a spotlight on how today’s customers are increasingly mobile, social, and direct.

Data from companies with sales of more than $4 billion (large and very large) is categorized into performance quartiles over a five year period to find the common characteristics linking the highest-ranking manufacturers, a category we call top-performing companies.

In conducting this year’s analysis, we found some expected consistencies among the performance comparisons as well as some fascinating variations.  However, numbers only tell you so much about what drives a company’s financial success. To better understand why top-performers excel and what strategies they focus on to boost financial outcomes, we examined their strategies around five key factors: operational efficiency, human capital, health and wellness, innovation, and brand management.