On: Ohio catastrophe is ‘wake-up call’ to dangers of d...

[Cthulhu_]

And concrete numbers; 68% means nothing without numbers, or comparing with their total expenses and therefore impact on profits.

[donmcronald → Cthulhu_]

Yeah. If their fuel costs were $1 and their profit is $1 million, a 68% increase in fuel cost makes no difference.

It's like the food companies in Canada that defend their price gouging by claiming their profit margins haven't changed. It's true, but if revenue is 2x what it was last year, the rich families that own those businesses are getting 2x the profit while trying to blame higher costs for the increased prices the average person is seeing.

[iinnPP → donmcronald]

See here's the problem and the reason I have noted the problem with the term.

Metro profits are up ~12% but so is food. If the profit margins don't change, those numbers indicate the exact opposite of what you are claiming.

Loblaws profits are not up 100% either. The gross profit of Loblaws in 2021 is at ~4.86b where 2022 is at 5.27b. Is that not 8.4%?

Where do you get 2x factor?

[donmcronald → iinnPP]

I said if revenue was 2x with the profit margin being the same, the profits would be double. If your margin is 20%, would you rather have $10 in revenue ($2 profit) or $20 in revenue ($4 profit)?

So if their costs go up 20%, they increase prices by 20% to compensate, and they maintain the same margin, the profits are higher.