D.E. Master Blenders 1753 N.V. (XAMS:DE) Operating Income : € Mil (TTM As of Jun. 2012)

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What is D.E. Master Blenders 1753 N.V. Operating Income?

D.E. Master Blenders 1753 N.V.'s Operating Income for the six months ended in Jun. 2012 was €110 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. D.E. Master Blenders 1753 N.V.'s Operating Income for the six months ended in Jun. 2012 was €110 Mil. D.E. Master Blenders 1753 N.V.'s Revenue for the six months ended in Jun. 2012 was €2,795 Mil. Therefore, D.E. Master Blenders 1753 N.V.'s Operating Margin % for the quarter that ended in Jun. 2012 was 3.93%.

D.E. Master Blenders 1753 N.V.'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. D.E. Master Blenders 1753 N.V.'s annualized ROC % for the quarter that ended in Jun. 2012 was 3.05%. D.E. Master Blenders 1753 N.V.'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2012 was 11.29%.

D.E. Master Blenders 1753 N.V. Operating Income Historical Data

The historical data trend for D.E. Master Blenders 1753 N.V.'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.

* Premium members only.

D.E. Master Blenders 1753 N.V. Operating Income Chart

D.E. Master Blenders 1753 N.V. Annual Data

Trend

Jun11

Jun12

Operating Income

325.26

109.71

D.E. Master Blenders 1753 N.V. Semi-Annual Data
	Jun11	Jun12
Operating Income	325.26	109.71

D.E. Master Blenders 1753 N.V. 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 Jun. 2012 was € Mil.

D.E. Master Blenders 1753 N.V. (XAMS:DE) Operating Income Explanation

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

D.E. Master Blenders 1753 N.V.'s annualized ROC % for the quarter that ended in Jun. 2012 is calculated as:

	ROC % (Q: Jun. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2011 )	+	Invested Capital (Q: Jun. 2012 ))	/ count )
=	109.711 * ( 1 - 49.07% )	/	( (2488.281	+	1175.244)	/ 2 )
=	55.8758123	/	1831.7625
=	3.05 %

where

	Invested Capital		(Q: Jun. 2011 )
=	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	))
=	4588.093	-	750.394	-	( 1349.418	-	max(0, 1145.139	-	3345.724	+	1349.418	))
=	2488.281

	Invested Capital		(Q: Jun. 2012 )
=	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	))
=	2163.988	-	925.158	-	( 242.611	-	max(0, 1035.115	-	1098.701	+	242.611	))
=	1175.244

Note: The Operating Income data used here is one times the annual (Jun. 2012) data.

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

D.E. Master Blenders 1753 N.V.'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2012 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2012 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2011		Q: Jun. 2012
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	109.711	/	( ( (369.861 + max(1196.986, 0))	+	(377.437 + max(-150.569, 0)) )	/	2 )
=	109.711	/	( ( 1566.847	+	377.437 )	/	2 )
=	109.711	/	972.142
=	11.29 %

where Working Capital is:

	Working Capital		(Q: Jun. 2011 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(335.043	+	437.545	+	1223.718)	-	(750.394	+	0	+	48.926)
=	1196.986

	Working Capital		(Q: Jun. 2012 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(421.593	+	404.863	+	29.634)	-	(925.158	+	0	+	81.501)
=	-150.569

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Jun. 2012) EBIT data.

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

D.E. Master Blenders 1753 N.V.'s Operating Margin % for the quarter that ended in Jun. 2012 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2012 )	/	Revenue (Q: Jun. 2012 )
	=	109.711	/	2795.018
	=	3.93 %

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.

D.E. Master Blenders 1753 N.V. Operating Income Related Terms

Thank you for viewing the detailed overview of D.E. Master Blenders 1753 N.V.'s Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

D.E. Master Blenders 1753 N.V. (XAMS:DE) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » D.E. Master Blenders 1753 N.V. (XAMS:DE) » Definitions » Operating Income

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Address

Website

http://www.demasterblenders1753.com

D E Master Blenders 1753 NV was incorporated on February 27, 2012 as a private company with limited liability. On April 4, 2012, it changed its name to D.E MASTER BLENDERS 1753 B.V. and moved its corporate seat to Joure (SkasterlÃ¢n), the Netherlands. The Company is a pure-play coffee and tea company that offers high-quality, coffee and tea products that are known in retail and out of home markets across Europe, Brazil, Australia and Thailand. It has a portfolio of coffee and tea brands that address the needs of both its retail and out of home customers in its markets. The Company's segments are Retail-Western Europe, Retail-Rest of World and Out of Home. In Retail-Western Europe and Retail-Rest of World segments, its principal products are multi-serve coffee, single-serve coffee pads and capsules, instant coffee and tea. It sells these products predominantly to supermarkets, hypermarkets and through international buying groups. In its Out of Home segment, it offers hot beverage products but focus on its liquid roast products and related coffee machines. Its products and the related machines in the Out of Home segment are sold either directly to businesses, hotels, hospitals and restaurants or to foodservice distributors for distribution to the customer. Douwe Egberts is the Company's established brand in the multi-serve category and coffee brand in the Netherlands and Belgium and also has solid market positions in the United Kingdom and Hungary. In addition to Douwe Egberts, its multi-serve coffee is sold under the following brands: L'OR and Maison du CafÃ© in France, Marcilla in Spain,Merrild in Denmark, Harris in Australia, Kanis & Gunnink in the Netherlands, Jacqmotte in Belgium, Prima in Poland, and PilÃ£o, Caboclo, Damasco and Moka in Brazil. Its single-serve coffee is sold under the brand name Senseo which is generally co-branded, such as Douwe Egberts Senseo and L'OR Senseo, in the Netherlands, Belgium, France, Germany, and Spain and selected other countries. In April 2010, it launched the L'OR EspressO capsules brand in France, and L'OR EspressO has subsequently been successfully launched in the Netherlands and Belgium. In May 2011, it successfully launched its capsules brand in Spain as L'aRÃ´me EspressO. The Company's instant coffee is sold under the Moccona brand in Australia and Thailand, under the Douwe Egberts brand in the United Kingdom and under local brands in certain of its markets. Its tea is sold under the brand names Pickwick in the Netherlands, Belgium, the Czech Republic, Hungary and Denmark and Hornimans in Spain. The Out of Home segment operates under the Cafitesse umbrella brand, which is principally co-branded Douwe Egberts Cafitesse, for its liquid roast coffee products and machines and under its Piazza D'Oro brand for premium espresso products and machines. The Company competes with other large international and national coffee and tea companies as well as smaller regional and specialty coffee and te