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ANNUAL REPORT 2011
The other operating profits stood at 3,6
million euros, of which the largest share
corresponds to suppliers’ contributions to
marketing campaigns.
Operating expenses
Consolidated operating expenses reached the
amount of 187,7 million euros, 3.5% less than
in the previous year, increasing their weight
in sales.
Gross margin
The cost of merchandise and raw materials
sold and consumed, which in 2010
represented 21.8% of sales, increased to
22.6%, approaching the figure for financial
year 2008. The increase is primarily due to
alteration of the sales mix with greater weight
given to counter concepts and the greater
pressure on sales prices felt in the current
context.
The gross margin over turnover was 77.5%
in this financial year, compared to 78.4%
recorded in the previous year.
Remunerations and personnel
costs
Personnel costs fell by 3 million euros to 65,0
million euros. The 4.4% decrease was insufficient
to accompany the reduced activity, mainly
because the company decided not to reduce
some installed capacities, while the sales drops
were of the extent verified. Costs incurred with
the project in Angola must also be added, which
during the year involved 185,000 euros and
where sales will only begin in 2012. The weight
of this item, which in 2010 had fallen to 32%,
rose to account for 33.5% of turnover in 2011.
Most brands recorded a major and gradual
adjustment of the number of hours contracted
in response to the lower sales volume.
Supplies and External Services
Costs with supplies and external services came
to 63,7 million euros, after reaching 67,1 million
euros in 2010, corresponding to a decrease of
5.1%, or below the activity’s evolution.
The weight of this item consequently shifted
from 31.6% to 32.7% of turnover. The resilience
of some costs of a more fixed nature, specifically
rents, hindered a more accentuated reduction of
this item despite efforts to curtail some general