Profitability of sales of the largest paints and varnishes manufacturers in Russia

ranking 09/02/2016

Information Agency Credinform has prepared the ranking of the largest Russian paints and varnishes manufacturers.

Top-10 enterprises in terms of annual revenue were selected according to the data from the Statistical Register for the latest available period (for the year 2014). The enterprises were ranked by decrease in profitability of sales. Besides, profit dynamics relative previous financial period and solvency index GLOBAS-i® are also represented (see table 1).

Profitability of sales (%) is the share of operating profit in the sales volume of the company.

The ratio characterizes the most important aspect of company’s activity - the efficiency of the industrial and commercial activity and shows the company’s funds, which are remained after covering the cost of production, interest and tax payments.

Profitability of sales is an indicator of the company’s price policy and shows its ability to control the expenses. Differences in competitive strategies and product lines cause a substantial range of ratio values. Therefore it should be taken into account, that at equal values of revenue, operational expenses and profit before tax, the profitability of sales ratio of two companies can be significantly different, due to the influence of interest payments on net profit.

Table 1. Revenue, revenue growth for the year, profitability of sales and solvency index GLOBAS-i®   of the largest paints and varnishes manufacturers (Top-10)
NameRegionRevenue,mln RUB, 2014Revenue growth, %Profitability of sales, %Solvency index GLOBAS-i®
1 LLC Akzo Nobel Lakokraska
INN 5034019048
Moscow region 1 662 28,7 21,3 200 high
INN 7602003918
Yaroslavl region 2 193 13,7 13,4 183 the highest
3 Gesellschaft mit beschraenkter Haftung BASF Wostok
INN 7710317252
Moscow region 3 127 -0,5 12,8 193 the highest
4 CJSC Akzo Nobel Dekor
INN 5001027607
Moscow region 3 418 10,4 12,2 193 the highest
INN 7816424590
Saint-Petersburg 9 775 3,0 12,1 221 high
INN 5041024497
Moscow region 1 711 17,3 10,0 304 satisfactory
INN 6167008343
Rostov region 2 315 -2,8 9,9 253 high
INN 3618003426
Voronezh region 1 692 12,4 9,7 223 high
INN 7605015012
Yaroslavl region 2 628 1,0 7,3 209 high
INN 7702177932
Moscow region 2 891 7,6 6,9 199 the highest

According to 2014 financial results, the average value of profitability of sales ratio of Top-10 enterprises is 11,5%; the highest value is 21,3 % (LLC Akzo Nobel Lakokraska), the lowest value is 6,9% (LLC LAKRA SINTEZ).

The ratio of the industry leader LLC TIKKURILA is above average (12,1%).

Tikkurila concern started its activity in Russia in the 1980-ies, the company exported industrial coatings. In 1990-ies Tikkurila became the first western company, which presented the paint tinting system in Russia. In 1995 Tikkurila opened first European paint plant in Russia.

Today LLC Tikkurila is represented by four industrial areas, which are located in Saint-Petersburg and Stary Oskol: three plants produce decorative paints and varnishes under Tikkurila, Fincolor, TEKS trademarks and one plant produces paints and varnish materials for industrial purposes.

revenue and profitability of sales of the largest paints and varnishes manufacturers in Russia

Picture 1. Revenue and profitability of sales of the largest paints and varnishes manufacturers in Russia (Top-10)

According to 2014 results, the annual revenue of Top-10 enterprises amounted to 31,4 bln RUB; total turnover of Top-10 enterprises increased by 6,2% in the reporting period.

According to 2015 results, 811 ths tons of paints and varnishes based on polymers were produced in Russia (-6% to 2014 level); 420 ths tons of paints and varnishes (+4,5%) and 28,7 ths tons of synthetic organic dyes and colored varnishes (+15,1%).

All enterprises (except LLC MEFFERT POLILUX with net loss in the reporting period) demonstrated high and the highest solvency index GLOBAS-i®, that is a sign of good company’s solvency to investor or partner.