What was Besique's operating profit for year ended 30 June 2025?

• A. £66 million
• B. £16.9 million
• C. £1.7 million
• D. £2.5 million

Answer: (C)

Operating profit is EBIT—profit from core operations before finance costs and taxes. To get it, start with revenue, subtract cost of sales to obtain gross profit, then deduct operating expenses such as selling/distribution and administrative costs. Depreciation and amortization are treated as part of operating costs since they reflect the use of assets in the business. Include any other operating income and subtract other operating expenses that relate to day-to-day operations. The result is the operating profit.

For Besique in the year ended 30 June 2025, performing these steps with the company’s income statement figures yields 1.7 million pounds, which is the figure shown as operating profit. Other numbers would only differ if items were classified differently (for example, if depreciation were treated separately or if some items were moved in or out of operating activities), which is why they don’t match EBIT.