Ferguson plc or China Eastern Airlines Corporation Limited: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Giants

In the competitive world of global business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Ferguson plc and China Eastern Airlines Corporation Limited, two industry leaders, offer a fascinating study in contrasts. From 2014 to 2023, Ferguson plc consistently maintained lower SG&A expenses relative to revenue, showcasing a disciplined approach to cost management. In 2023, Ferguson's SG&A expenses were approximately 18% lower than China Eastern Airlines, despite a steady increase over the years.

China Eastern Airlines, on the other hand, experienced significant fluctuations, with a notable spike in 2023, where SG&A expenses surged by over 147% compared to 2021. This volatility highlights the challenges faced by the airline industry, especially during global disruptions. As we look to the future, Ferguson's steady trajectory may offer lessons in resilience and efficiency for businesses worldwide.