Finance in FMCG
FMCG finance: gross margin management, trade spend and promotional ROI, working capital in a high-volume business, and the pressure of private label.
This block builds financial fluency for FMCG, a sector defined by high volume, thin unit margins, heavy trade spend, and intense working capital pressure from retailer negotiations. You will examine how revenue is built through pricing, volume, and mix, how trade promotions and slotting fees erode gross margin, and how inventory and receivables cycles interact with powerful retail buyers to shape cash conversion. The block moves from core financial concepts applied to FMCG, through the specific ratios, benchmarks and calculations used to judge brand and category performance in US and European markets, to the regulatory frameworks, financial risks and due diligence checks relevant to M&A, investment and supplier relationships in this sector.
Ce que vous allez maîtriser
- Build and interpret an FMCG P&L, identifying gross-to-net revenue bridges, trade spend impact, and margin drivers by category
- Calculate and benchmark key sector ratios such as gross margin, A&P-to-sales, inventory days, and cash conversion cycle against US and European norms
- Assess working capital and retailer power dynamics through payment terms, DIO, DSO, and DPO analysis
- Conduct a financial due diligence review of an FMCG business, identifying regulatory, pricing, and supply chain risks