Hi, need to submit a 1500 words essay on the topic Intercontinental Hotels Group plc Finance report.
Increase in cost of sales has made no large effect on the gross profit in 2013 because the turnover has increased with a greater proportion than the cost of sales. The revenue in 2013 has increased by 3.79% while the increase in cost of sales is just as low as 0.13%. This has caused the gross profit of the company to increase by 6.62% in 2013.
Other operating income of $57 million in 2012 has disappeared in 2013 causing an expense of $3 million in 2013, and the administrative expenses have decreased from $381 million in 2012 to $379 million in 2013. This has contributed towards the favourable effect on the operating profit in 2013.
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