The HC ROI analysis of the key players in Bulgaria’s brewing industry continues with information about Carlsberg Bulgaria. This chart is part of the article on Human Capital Return on Investment.
HC ROI for Carlsberg Bulgaria, 2007-2011
The first thing that strikes on the chart is the steady downtrend in revenues after 2008. This rather unflattering picture is further worsened by a steady decline in profits (not shown on chart), with the exception of 2010 when an increase in the margin between revenues and expenses results in an increase in HC ROI to 1.87, this being the highest level for the entire period. Remuneration costs keep going up slowly, even where headcount and revenues go down. Unfortunately, there is no indication whether remunerations are tied to the company’s revenues and profits.
HC ROI fluctuates alarmingly, hitting the bottom in 2011. The chart reveals that at the end of 2011, Carlsberg’s managers were faced with the challenge of taking serious decisions aimed at boosting revenues, cost optimization and HC optimization. I very much hope that the analysis has been helpful in identifying the measures which the company has to take to improve workforce efficiency and use the full potential of its employees to boost performance. Whether this has actually been the case, remains to be seen after the publication of the 2012 results.