The functional currency of YUMC is the RMB, not the USD. So what happens if the revenue is converted to RMB?
FY2015 FY2016 FY2017 FY2018 FY2019 Adjusted Normalised NPAT (USD) {A} $369m $472m $589m $633m $687m Revenue (USD) {B} $7,233m $7,075m $7,769m $8,415m $8,776m RMB/USD Exchange Rate (Yearly Average) (1) 6.2850 6.6452 6.7572 6.6094 6.9050 Revenue (RMB) RMB45.459 RMB47.015 RMB52.496 RMB55.618 RMB60.598 Chinese Inflation (3) 1.4% 2.0% 1.6% 2.1% 2.9% Net Profit Margin {A}/{B} 5.10% 6.67% 7.58% 7.52% 7.83%
Notes
(1) Averaged annual exchange rates taken from https://www.netcials.com/forex-yearl...-rate/CNY-USD/
[2) I have revised my definitions of 'normalised profit' and 'revenues' from earlier years (see my posts 63 and 65).
(3) I grabbed the CPI inflation rate for China from here: https://www.focus-economics.com/coun...hina/inflation
Discussion
The revenue growth rate in local currency per annum was:
RMB45.459 x (1+g)^4 = RMB60.598 => g=7.45% (compounding)
The annual revenue growth rate in the reporting currency (USD) was:
$7,233m x (1+g)^4 = $8,776m => g=4.87% (compounding)
For the first time the majority of my study period is a time when YUMC was separately listed. The annual compounding growth rate is significantly higher than in the previously quoted comparative post, and a lot higher than you might think if you just looked at the USD revenue growth rate. The benefits of having YUMC as a separate listed entity (from late 2016) may be showing through here.
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