Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) Operating Income: S/.2,542 Mil (TTM As of Dec. 2018)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LIM:BACKUAC1 Union de Cervecerias Peruanas Backus & Johnston SA LIM:BACKUAC1
23 GF Score
Price S/.255.00
View Full Analysis

What is Union de Cervecerias Peruanas Backus & Johnston Operating Income?

Union de Cervecerias Peruanas Backus & Johnston LIM:BACKUAC1 23 Operating Income is S/.2,542 Mil as of Dec. 2018. GuruFocus rates LIM:BACKUAC1 with a GF Score™ of 23/100.

Union de Cervecerias Peruanas Backus & Johnston's Operating Income for the six months ended in Dec. 2018 was S/.2,542 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2018 was S/.2,542 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Union de Cervecerias Peruanas Backus & Johnston's Operating Income for the six months ended in Dec. 2018 was S/.2,542 Mil. Union de Cervecerias Peruanas Backus & Johnston's Revenue for the six months ended in Dec. 2018 was S/.5,290 Mil. Therefore, Union de Cervecerias Peruanas Backus & Johnston's Operating Margin % for the quarter that ended in Dec. 2018 was 48.05%.

Union de Cervecerias Peruanas Backus & Johnston's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Union de Cervecerias Peruanas Backus & Johnston's annualized ROC % for the quarter that ended in Dec. 2018 was 54.76%. Union de Cervecerias Peruanas Backus & Johnston's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2018 was 112.96%.

Union de Cervecerias Peruanas Backus & Johnston  (LIM:BACKUAC1) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Union de Cervecerias Peruanas Backus & Johnston's annualized ROC % for the quarter that ended in Dec. 2018 is calculated as:

ROC % (Q: Dec. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2017 ) + Invested Capital (Q: Dec. 2018 ))/ count )
=2542.259 * ( 1 - 29.94% )/( (3320.406 + 3184.55)/ 2 )
=1781.1066554/3252.478
=54.76 %

where

Invested Capital(Q: Dec. 2017 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5204.647 - 2380.232 - ( 1337.171 - max(0, 2757.788 - 2261.797+1337.171))
=3320.406

Invested Capital(Q: Dec. 2018 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5333.86 - 2306.448 - ( 708.03 - max(0, 2614.885 - 2457.747+708.03))
=3184.55

Note: The Operating Income data used here is one times the annual (Dec. 2018) data.

2. Joel Greenblatt's definition of Return on Capital:

Union de Cervecerias Peruanas Backus & Johnston's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2018 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2018 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2017  Q: Dec. 2018
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2637.804/( ( (2360.016 + max(-2189.785, 0)) + (2310.331 + max(-2095.628, 0)) )/ 2 )
=2637.804/( ( 2360.016 + 2310.331 )/ 2 )
=2637.804/2335.1735
=112.96 %

where Working Capital is:

Working Capital(Q: Dec. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(295.192 + 213.926 + 30.288) - (2380.232 + 0 + 348.959)
=-2189.785

Working Capital(Q: Dec. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(215.473 + 231.786 + 48.598) - (2306.448 + 0 + 285.037)
=-2095.628

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2018) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Union de Cervecerias Peruanas Backus & Johnston's Operating Margin % for the quarter that ended in Dec. 2018 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2018 )/Revenue (Q: Dec. 2018 )
=2542.259/5290.391
=48.05 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Union de Cervecerias Peruanas Backus & Johnston Operating Income Related Terms

Union de Cervecerias Peruanas Backus & Johnston Operating Income Historical Data

* Premium members only.

The historical data trend for Union de Cervecerias Peruanas Backus & Johnston's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Union de Cervecerias Peruanas Backus & Johnston Operating Income Chart

Union de Cervecerias Peruanas Backus & Johnston Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,134.59 1,304.33 1,280.04 2,000.09 2,542.26

Union de Cervecerias Peruanas Backus & Johnston Semi-Annual Data
Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,134.59 1,304.33 1,280.04 2,000.09 2,542.26
LIM:BACKUAC1
23GF Score
Union de Cervecerias Peruanas Backus & Johnston SA LIM:BACKUAC1
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Union de Cervecerias Peruanas Backus & Johnston Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2018 was S/.2,542 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of S/.2,542 Mil mean?
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) has a Operating Income of S/.2,542 Mil as of Dec. 2018. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Union de Cervecerias Peruanas Backus & Johnston and its competitors.
Is Union de Cervecerias Peruanas Backus & Johnston's Operating Income too high?
Union de Cervecerias Peruanas Backus & Johnston's current Operating Income is S/.2,542 Mil. Overall, Union de Cervecerias Peruanas Backus & Johnston has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Union de Cervecerias Peruanas Backus & Johnston's Operating Income compare to competitors?
Union de Cervecerias Peruanas Backus & Johnston's Operating Income of S/.2,542 Mil can be compared against companies in the Beverages - Alcoholic industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Beverages - Alcoholic company?
A good Operating Income depends on the Beverages - Alcoholic industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Union de Cervecerias Peruanas Backus & Johnston and its competitors. Union de Cervecerias Peruanas Backus & Johnston's current Operating Income is S/.2,542 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union de Cervecerias Peruanas Backus & Johnston stock overvalued right now?
Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1) has a current Operating Income of S/.2,542 Mil. The current Operating Income is S/.2,542 Mil. Union de Cervecerias Peruanas Backus & Johnston's overall GF Score™ is 23/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Union de Cervecerias Peruanas Backus & Johnston (LIM:BACKUAC1), the current Operating Income is S/.2,542 Mil as of Dec. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Union de Cervecerias Peruanas Backus & Johnston Business Description

Address Nicolas Ayllon Number 3986, Ate, Lima, PER
Union de Cervecerias Peruanas Backus & Johnston SA is engaged in the business of production, packaging, sale, distribution, and all other types of business related to malted and malt beverages, non-alcoholic beverages, and carbonated waters. The company's main business also includes investment in securities of domestic and foreign companies; the exploitation of rural properties; the sale, processing, conservation, marketing, and export of agricultural products; and the provision of advisory services related to these products.
23GF Score

Get the complete analysis for LIM:BACKUAC1

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

S/.255.00
Price