Bloomhouse Florals — Projected Profit & Loss

The projected profit and loss over the five-year plan — revenue by channel, gross profit, operating costs, EBITDA and net profit, with the margin trajectory.

Section 12 · Business Plan

Projected Profit & Loss

The projected profit and loss over the five-year plan — revenue by channel, gross profit, operating costs, EBITDA and net profit, with the margin trajectory.

The projected income statement below is shown in full for all five
years, built from the integrated model. Revenue and EBITDA reflect the
growth case; net profit is re-derived conservatively with full
depreciation, full interest and the 27% corporate tax rate, with
assessed losses carried forward.

12.1 Five-year income statement

R’ millions	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	R10.4m	R15.2m	R21.9m	R30.2m	R39.6m
Cost of sales	(R4.7m)	(R6.6m)	(R9.4m)	(R12.8m)	(R16.6m)
Gross profit	R5.8m	R8.6m	R12.5m	R17.4m	R23.0m
Staff costs	(R2.5m)	(R3.1m)	(R4.0m)	(R5.2m)	(R6.5m)
Premises & occupancy	(R1.1m)	(R1.1m)	(R1.7m)	(R1.8m)	(R1.9m)
Marketing & acquisition	(R0.7m)	(R1.0m)	(R1.4m)	(R1.8m)	(R2.1m)
Delivery & fleet	(R0.4m)	(R0.5m)	(R0.8m)	(R1.0m)	(R1.2m)
Technology & payments	(R0.3m)	(R0.4m)	(R0.6m)	(R0.8m)	(R1.1m)
Other operating	(R0.7m)	(R1.0m)	(R1.0m)	(R1.5m)	(R2.2m)
EBITDA	R0.1m	R1.4m	R3.1m	R5.3m	R7.9m
Depreciation	(R1.7m)	(R1.8m)	(R2.2m)	(R2.0m)	(R2.1m)
EBIT	(R1.6m)	(R0.4m)	R0.9m	R3.3m	R5.8m
Net interest	(R0.7m)	(R0.7m)	(R0.6m)	(R0.5m)	(R0.4m)
Profit / (loss) before tax	(R2.4m)	(R1.1m)	R0.2m	R2.8m	R5.4m
Taxation	R0.0m	R0.0m	(R0.0m)	(R0.1m)	(R1.2m)
Profit / (loss) after tax	(R2.4m)	(R1.1m)	R0.2m	R2.6m	R4.2m

Table 22. Projected income statement, Years 1–5.
Figures in brackets are deductions; totals may not sum due to
rounding.

STRENGTH Profitability is fully loaded and conservatively
phased

The business is modelled to be marginally EBITDA-positive from Year 1
and to reach net profitability in Year 3, after absorbing full
depreciation on the R8.8m capital base and full interest on all
facilities. The Year-1 and Year-2 losses are funded by the opening
liquidity buffer and are expected; they are not masked by capitalising
costs or deferring depreciation. Assessed losses of the early years
shelter early taxable profits, which is reflected in the tax
line.

12.2 Margin progression

Margins improve steadily as the business scales. Gross margin rises
from 55.5% to 58% on sourcing discipline and spoilage reduction, while
EBITDA margin expands from near break-even to 20% as operating expenses
grow more slowly than revenue. The charts below show the margin
trajectory and the EBITDA ramp.

Figure 9.

Figure 9. Gross and EBITDA margin progression, Years 1–5. Operating leverage drives EBITDA margin from near break-even to 20%.

Figure 10.

Figure 10. EBITDA ramp, Years 1–5, showing the path from break-even trading to R7.9m of EBITDA.

12.3 Bridge from revenue to profit

The waterfall below decomposes the Year-5 position, showing how
revenue converts to net profit after cost of sales, operating expenses,
depreciation, interest and tax.

Figure 11.

Figure 11. Year-5 profit-and-loss waterfall, from revenue to profit after tax.

12.4 Cost structure

The cost structure is dominated by cost of sales and staff costs,
consistent with a craft-led, service-intensive business. Staff costs are
the largest operating line and are modelled to grow more slowly than
revenue, the principal source of operating leverage.

Figure 12.

Figure 12. Cost structure as a share of revenue, Years 1–5. Cost of sales and staff are the dominant lines.

12.5 Year-1 monthly profile

Because the first year carries the launch ramp and the seasonal peaks
that matter most to a florist — Valentine’s Day and Mother’s Day — the
model resolves Year 1 to a monthly profile. The chart shows revenue
building through the ramp with pronounced peaks around the key gifting
occasions, and EBITDA turning positive as volume scales.

Figure 13.

Figure 13. Year-1 monthly revenue and EBITDA profile, showing the launch ramp and the Valentine’s and Mother’s Day peaks.

The monthly profile underlines two points that matter to a lender
assessing the first year. First, the seasonal concentration around
February and May means that working-capital and stock planning for those
peaks is operationally critical — a missed Valentine’s or Mother’s Day
is disproportionately costly. Second, the path to monthly EBITDA
break-even is gradual: the business absorbs fixed costs through the ramp
before volume catches up, which is exactly why the opening liquidity
buffer is sized to carry the first year. Taken together, the monthly
view supports the full-year figures rather than contradicting them, and
it demonstrates that the annual numbers are the sum of an intelligible
operating rhythm rather than a smooth abstraction.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Bloomhouse Florals (Pty) Ltd.