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My key KPI: Contribution percentage

20th Mar 2019
My key KPI
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My key KPI is a recurring content series where we ask CFOs and FDs what metrics and measures they use to drive their businesses forward.

The aim is to understand how different finance professionals across a broad array of industries and sectors use data to inform their decision making.

For this edition, we speak to Rachel Eade, the finance and operations director of the St Pierre Group (formerly known as Carrs Foods), an international bakery business.

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It’s been crazy growth for St Pierre. The Manchester business has seen revenues climb consistently. “Our turnover has gone from a steady £20m a year, and it has eked up increments,” said Rachel Eade. “From £20m to £29m, to £39m, to £49m. This year we're going to report £69m.”

This growth has been fuelled by St Pierre ever-expanding product range. The business has moved beyond baked goods and into frozen and food-to-go. And it’s an enormous logistical operation.

Eade’s key KPI is directly related to the operational side of St Pierre. The logistical process spans multiple countries and incurs all sorts of variable costs. “My key KPI would be contribution percentage,” she said. St Pierre goes further than gross margin -- that’s sales less your cost of sale -- and factors in all the company’s additional costs.

“We have additional costs like warehousing and distribution because we supply to our customers a distributed price. There are other direct costs we take into account as well, like goods getting lost in transit and damages.

“So it's like gross margin but a bit further down, including a few more costs. It's the true profit we make.”
 

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By Brend201
26th Mar 2019 13:09

"it has eked up increments,” said Rachel Eade. “From £20m to £29m, to £39m, to £49m. This year we're going to report £69m.

Odd use of language, particularly with these numbers. "Eked up increments".

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