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I’m reading answers to question 1 regarding the analysis of Neach Glass and there are some points I could not understand:
“Although market share has increased in the last four years (from 7% to 9%), Neach remains a relatively small player in a declining market (reduced by 2% in the last year). Gross and net profit margins are improving (gross profit from 16·98% to 18·26%; net profit from 7·14% to 9·07%) but, in terms of performance within the Group, they remain stubbornly low. Despite using some of the Group’s best managers, net profit has risen less than 2% since acquisition. In Boston Box terms the company is probably a dog.”
Please help me clarify the claim of “net profit has risen less than 2% since acquisition”. The net profit of Neach is from 0.45m (2008) to 0.72 (2011). The increase seems to me more than 2%.
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