Profitability of sales in flour trade

Information agency Credinform has prepared a ranking of the largest Russian companies engaged in wholesale trade of flour and noodle products. The largest enterprises (TOP-10) in terms of annual revenue were selected according to the data from the Statistical Register for the available periods (2016-2018). Then the companies were ranged by profitability of sales (Table 1). The analysis was 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.

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

Table 1. Net profit, revenue, profitability of sales, solvency index Globas of the largest companies engaged in wholesale trade flour and noodle products (ТОP-10)

Name, INN, region	Revenue, million RUB		Net profit (loss), million RUB		Profitability of sales, %		Solvency index Globas
	2017	2018	2017	2018	2017	2018
1	2	3	4	5	6	7	8
LLC DOSHIRAK RUS INN 7729663418 Moscow	8 950,00	10 076,83	1 041,90	1 359,91	12,21	15,63	173 Superior
LLC Mir Bakalei INN 7724189748 Moscow	1 973,20	2 160,71	102,44	136,11	6,72	8,42	195 High
INFOLINK INCORPORATED INN 7724026535 Moscow	3 952,30	3 976,48	362,15	292,51	9,78	6,90	180 High
JSC TRADE HOUSE BORNEO INN 5433113660 Novosibirsk region	846,26	793,83	43,10	32,98	3,85	5,53	203 Strong
LLC AGROINDUSTRIYA INN 7106060700 Tula region	905,78	1 322,23	15,09	34,12	3,17	4,02	240 Strong
LLC KRUPTORG GARANT INN 2462215861 Krasnoyarsk region, case on declaring the company bankrupt (insolvent) is proceeding, bankruptcy proceedings since 31.10.2019	868,91	1 092,30	6,00	-51,62	3,98	3,12	550 Insufficient
LLC UPRAVLENIE OPTOVOI TORGOVLI INN 2320049658 Republic of Tatarstan	656,89	691,26	2,82	2,88	0,90	1,34	233 Strong
LLC TRADE COMPANY ALFA INN 3801113450 Irkutsk region	649,39	593,44	-8,97	3,60	-0,39	0,79	304 Adequate
LLC PANGEYA INN 0273028534 Republic of Bashkortostan	776,80	871,83	11,82	2,39	2,20	0,42	244 Strong
LLC TRADE COMPANY Rus-MATUSHKA INN 1835081820 Udmurtia	1 543,78	1 901,12	4,66	0,30	0,06	0,09	295 Medium
Average value for TOP-10 companies	2 112,33	2 348,00	158,10	181,32	4,25	4,63
Average industry value	125,37	104,46	3,78	4,50	3,38	5,61

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

In 2018, the average value of profitability of sales for TOP-10 companies is lower than average industry value: eight companies improved the results.

Picture 1. Profitability of sales and revenue of the largest Russian companies engaged in wholesale trade of trade flour and noodle products (ТОP-10)

Within 10 years, the average industry indicators of profitability of sales showed the growing tendency. (Picture 2).

Picture 2. Change in average industry values of profitability of sales of Russian companies engaged in wholesale trade of flour and noodle products in 2009 – 2018