Profitability of sales of the largest jewellery retailers by 2020 results

ranking 12/05/2021

Information agency Credinform has prepared a ranking of Russian jewellery retailers. The largest enterprises (TOP-10 and TOP-500) in terms of annual revenue were selected according to the data from the Statistical Register and the Federal Tax Service for the available periods (2018-2020). Then the companies were ranged by profitability of sales ratio (Table 1). The company selection and analysis were based on the data from the Information and Analytical system Globas.

Profitability of sales (%) is the share of operating profit in the sales volume of the company. The ratio characterizes the efficiency of the industrial and commercial activity and shows the company’s funds, which remained after covering the cost of production, interest and tax payments.

The rage of ratio’s values within companies of the same industry is defined by the differences in competitive strategies and product lines.

The calculation of practical values of financial indicators, which might be considered as normal for a certain industry, has been developed and implemented in the Information and Analytical system Globas by the experts of Information Agency Credinform, taking into account the actual situation of the economy as a whole and the industries. The practical value of profitability of sales ratio for the jewellery retailers is from 2,04 to 16,56 %%.

For the most full and fair opinion about the company’s financial position, the whole set of financial indicators and ratios of the company should be taken into account.

Table 1. Net profit, revenue, profitability of sales, solvency index Globas of jewellery retailers (ТОP-10)
Name, INN, region Revenue,million RUB Net profit (loss),million RUB Profitability of sales, % Solvency index Globas
2019 2020 2019 2020 2019 2020
1 2 3 4 5 6 7 8
LLC ZOLOTO YUGA
INN 6164304062 Rostov region
down589,0 up651,7 up122,3 up133,7 up29,32 up36,20 205 Strong
LLC ZOLOTOI
INN 7805555551 St. Petersburg
down731,9 up791,0 down177,1 up221,3 up29,17 up30,38 202 Strong
LLC YUVELLA
INN 6163095867 Rostov region
up877,4 down857,8 down206,3 up239,6 down27,45 up29,75 215 Strong
LLC ZOLOTO URALA
INN 6670352263 Sverdlovsk region
down663,1 up757,0 down120,4 down33,9 down25,51 up27,04 230 Strong
LLC STOLITSA DAIMOND
INN 9705071310 Moscow
up780,5 up877,3 up163,3 up185,5 up21,28 up26,90 195 High
LLC M STIL
INN 5032231313 Moscow region
up6 208,0 up7 037,9 down416,7 up1 256,4 down10,92 up26,90 224 Strong
LLC BULGARI RUSSIA
INN 7710969160 Moscow
up1 404,2 up1 655,3 up-66,3 up143,0 up2,51 up18,21 290 Medium
LLC JEWELLERY HOUSE KRISTALL
INN 4824030956 Lipetsk region
up2 621,5 down2 391,8 down7,0 up161,2 up7,48 up13,95 226 Strong
JSC PANCLUB
INN 7743765161 Moscow
down5 374,8 down3 761,6 down64,6 down-639,6 down17,37 down3,32 338 Adequate
LLC EPL Diamond Jewelry
INN 1435171885 Moscow
up1 572,4 down1 405,9 up83,2 down-30,2 down6,84 down0,88 306 Adequate
Average value for TOP-10 companies down2 082,3 down2 018,7 down129,5 up170,5 up17,79 up21,35  
Average value for TOP-500 companies down88,3 down81,4 down7,7 up10,0 up6,38 down5,66  

вверх growth of indicator in comparison with prior period, вниз decline of indicator in comparison with prior period

In 2020, only two companies from the TOP-10 list have the profitability of sales ratios within the industry average practical value.

The average value of profitability of sales for TOP-10 companies is higher and TOP-500 is lower than the values for the previous year. In 2020, two companies showed the decrease in revenue and five companies demonstrated the decrease in 2019.

At the same time, in 2020, six companies increased revenue and seven companies increased net profit. However, the TOP-10 revenue on average decreased by 3% and the TOP-500-by almost 8%. Along with this, the TOP-10 and TOP-500 profit increased by almost 32% and 30% respectively. Companies with large amount of revenue for 2019 have the largest losses.

In general, during the last 10 years, the growth of average industry indicators of profitability of sales ratio was observed 5 times. The ratio reached its highest values in 2016, and the worst result is shown in 2019 (Picture 1).

Picture 1. Change in average industry values of profitability of sales of jewellery retailers in 2010 – 2019 Picture 1. Change in average industry values of profitability of sales of jewellery retailers in 2010 – 2019