Mineral Water Company Financial Model
Financial Model For A Mineral Water Company
This financial model for a mineral (bottled water) company are built to assess profitability, cash flow, and financial health. It accounts for production costs, sales projections, operational expenses, capital investment, and financing. It includes detailed scenarios for two product line variations (80 SKUs) and a 6-tier subscription model Add-On.
Income Statement (Profit & Loss Statement)
The income statement should reflect all revenue streams and all operating and non-operating costs. Include the following sections:
A. Revenue
For each product line:
Units sold per year
Price per unit
Total revenue per product line
Discounts, promotions, and trade marketing deductions
Net Revenue
Revenue should be driven by:
Market growth
Capacity constraints
Price adjustments due to inflation or positioning
Channel mix (retail, wholesale, horeca, exports)
B. Cost of Goods Sold (COGS)
Break COGS into detailed components:
Raw water extraction costs
Filtration and purification inputs
Plastic bottle or glass container costs
Caps, labels, and packaging materials
Direct labor (operators, supervisors)
Utilities (electricity for pumps, CO₂ for carbonation if applicable)
Maintenance and consumables
Factory overhead allocations
Gross Profit = Net Revenue – COGS
C. Operating Expenses
Selling & Distribution Expense
Marketing and advertising
Trade marketing and promotional allowances
Transportation, logistics, warehousing
Sales team salaries and commissions
General & Administrative Expenses
Salaries for back office
Professional fees
Office rent and utilities
IT, insurance, compliance
Research & Development (optional)
Operating Profit = Gross Profit – Operating Expenses
D. Depreciation & Amortization
Depreciation of bottling lines
Trucks, warehouse equipment
Buildings and improvements
Amortization of licenses or patents
E. Financial Expenses
Interest on debt
Bank charges
FX impact (if relevant)
F. Taxes
Corporate income tax based on taxable income
G. Net Income
Net Income = Operating Profit – Interest – Taxes
Mineral Water Company Cash Flow Statement
The cash flow statement should follow standard direct or indirect reporting. Recommended: Indirect method.
A. Cash Flow from Operating Activities
Start with Net Income
Add back non-cash charges (depreciation, amortization)
Adjust for working capital changes:
Increase or decrease in accounts receivable
Increase or decrease in inventory (raw materials, finished goods)
Increase or decrease in accounts payable
Other operating adjustments (warranty provisions, bad debt allowances)
Operating Cash Flow = Net Income + Non-Cash Charges + Working Capital Adjustments
B. Cash Flow from Investing Activities
Capital expenditures:
New production lines
Additional storage tanks
New trucks or forklifts
Water source development (wells, pumps)
Purchase or disposal of fixed assets
Investing Cash Flow = Capital Expenditures – Proceeds from Asset Sales
C. Cash Flow from Financing Activities
New debt issuance
Debt repayments
Equity injections
Dividend payments
Financing Cash Flow = Net Borrowing + Equity Raised – Dividends
D. Net Cash Position
Opening cash balance
Net change in cash
Ending cash balance
Mineral Water Company Balance Sheet
A. Assets
Current Assets
Cash
Accounts receivable (based on DSO)
Inventory:
Raw materials (bottles, labels, caps)
Finished goods (water bottles)
Spare parts and consumables
Prepaid expenses (insurance, rent)
Non-Current Assets
Property, plant & equipment (PP&E):
Water extraction equipment
Filtration and bottling lines
Warehouses and office buildings
Vehicles
Intangible assets:
Brand development
Permits and licenses
Accumulated depreciation
B. Liabilities
Current Liabilities
Accounts payable
Accrued expenses
Short-term debt or current portion of long-term debt
Taxes payable
Long-Term Liabilities
Bank loans
Bonds (if applicable)
Lease obligations
C. Equity
Owner’s equity
Retained earnings
Share capital
Additional paid-in capital
Balance Sheet equation:
Assets = Liabilities + Equity
Key Financial Metrics for a Mineral Water Company
Core Model Structure
Assumptions & Drivers
Market demand growth rates
Production capacity by line and plant
Selling prices by product
Cost assumptions (raw materials, packaging, labor, utilities)
Distribution channel mix and logistics costs
Capital expenditure timeline
Depreciation method and useful life of assets
Working capital cycle (DSO, DPO, inventory days)
Financing terms (equity, debt, interest rate, repayment schedule)
Tax rate
Product Line Revenue Model
Production volume
Sales volume (after scrap, losses)
Pricing by SKU
Direct costs per SKU
Integrated Financial Statements
Income Statement
Cash Flow Statement
Balance Sheet
Valuation & Outputs (optional)
NPV, IRR
Payback period
Scenario & sensitivity analysis
Mineral (Bottled Water) Company Product Line Section (80 Product Lines)
A mineral water company with extensive variety might have up to 80 SKUs. These can be grouped into categories:
A. Editable Product Line Structure Description
For each product line, describe the following:
Product Identification
SKU name (e.g., “Still Water 500ml”, “Sparkling Water 1L Premium Glass”, etc.)
SKU category (still, sparkling, flavored, vitamin-enhanced, premium glass, multipacks)
Packaging
Bottle material (PET or glass)
Bottle size (200ml–2L)
Cap type (screw, sport cap)
Label type (paper, shrink sleeve)
Pricing Strategy
Factory price
Retail recommended price
Channel-specific pricing
Production Details
Production line assigned
Production cost per unit (materials + labor + utilities)
Expected yield (accounting for losses)
Volume Forecast
Monthly and annual sales volume
Channel distribution mix
Revenue Contribution
Annual revenue per SKU
% of total revenue
Direct Costs Per SKU
Bottle cost
Cap cost
Label cost
Variable labor cost
Utilities cost per unit
Gross Margin Per SKU
B. Purpose of Product Line Section
Identifies high-margin vs low-margin SKUs
Supports strategic decisions: discontinuations, expansions, packaging redesign, or premium repositioning
Tracks capacity utilization by product type
C. Examples of SKU Categories (Total of 80)
You would structure the model so these 80 are represented individually. Typical categories include:
Still Water PET (20 SKUs across sizes)
Still Water Glass (10 SKUs)
Sparkling PET (10 SKUs)
Sparkling Glass Premium (15 SKUs)
Flavored Water PET (15 SKUs)
Enhanced/Vitamin Water (10 SKUs)
Each is modeled individually but rolled up into the revenue and COGS sections.
Key Financial Ratios & Metrics
- Gross Profit Margin = (Revenue – COGS) / Revenue
- Operating Margin = Operating Profit / Revenue
- EBITDA Margin = (Earnings Before Interest, Taxes, Depreciation, and Amortization) / Revenue
- Current Ratio = Current Assets / Current Liabilities
- Debt-to-Equity Ratio = Total Debt / Shareholder’s Equity
- Return on Investment (ROI) = Net Profit / Investment Cost
Scenario Analysis
- Best Case: High subscription retention, strong retail demand, cost efficiency.
- Base Case: Steady sales growth with manageable costs.
- Worst Case: Supply chain disruptions, high churn, increased competition.
Conclusion
This Excel financial model for a mineral (bottled water) company balances product variety, cost structure, and revenue channels. By incorporating retail sales, bulk distribution, and a 6-tier subscription model, your business can stabilize cash flow and achieve long-term growth
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