Financial Insight

Establishing the financial case against common pan-European pricing

Challenge

A dominant European retailer notified our manufacturing client that they were seeking common pan European pricing. We were engaged in helping to counter the claim and reduce any possible financial operating losses.

Solution

Our financial modelling identified that this would result in a negative economic profit impact of over 25% of group operating profits. By working alongside the country management teams, we built a defence against the retailer claim, taking into account financial and commercial differences between the pan European businesses.   

Results

Together with the client’s internal team, we built a financial and commercial case to defend against the claim and reduce their overall exposure to less than 1.5% of group operating profits.