RDP pays off

摘要

Recently released results from the National Association of Chemical Distributors' (NACD) Company Productivity Report reveal that Association member companies continued to achieve profitability in 2008, albeit at slower rates than previous years. Overall, member companies experienced a 16.7 per cent nominal dollar sales increase, which translates into approximately a 14.5 per cent increase after adjusting for inflation. In particular, the key performance ratio 'return on investment before tax return on net worth' for the three operating groups in chemical distribution was 15.2 per cent for firms with 75 per cent or more of sales from bulk/repackaged liquids (LIQ); 34.2 per cent for companies with 75 per cent or more of sales from liquid and/ or dry factory-packaged products (FPP); and 32.4 per cent for those with a balanced product mix (BPM). However, despite NACD members showing positive sales changes over 2007, 2008 sales growth when measured by actual physical throughput of pounds of chemicals moving through the warehouse was either negative or flat, with LIQ achieving a figure of-1.6 per cent; FPP -4.0 per cent; and BPM 0.03 per cent.