Information agency Credinform has prepared a review of trends in activity of Russian jewellery companies.
The largest companies engaged in manufacture, sale and repair of products made of precious metals and stones (ТОP-1000) in terms of annual revenue were selected according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2016 - 2020). The company selection and analysis were based on data of the Information and Analytical system Globas.
The largest company in terms of net assets is STATE UNITARY ENTERPRISE THE COMMETTEE FOR PRECIOUS METALS AND GEM STONES OF THE REPUBLIC SAKHA (YAKUTIA), INN 1435343333, the Republic of Sakha (Yakutia), retail sale of jewellery in specialized stores. In 2020 net assets of the company amounted to more than 9,4 billion RUB.
The smallest size of net assets in TOP-1000 had LLC STOLICHNYI YUVELIRNYI ZAVOD, INN 7715602359, Moscow, manufacture of jewellery, medals from precious metals and stones, the legal entity is declared insolvent (bankrupt) and bankruptcy proceedings are initiated, 27/01/2021. The lack of property of the company in 2020 was expressed in negative terms -34,3 billion RUB.
For the last five years, the average industry values of net assets showed the downward tendency with decreasing dynamics of growth rates (Picture 1).
For the last five years, the share of ТОP-1000 enterprises with lack of property had the positive decreasing trend (Picture 2).
In 2020, the total revenue of 10 largest companies amounted to 52% from ТОP-1000 total revenue (Picture 3). This fact testifies the high level of capital concentration in the jewellery industry.
In general, the decreasing trend in sales revenue with downward dynamics of growth rates is observed (Picture 4).
Profit and loss
The largest company in terms of net profit is MOSCOW JEWELRY FACTORY, INN 7724181241, Moscow, manufacture of jewellery, medals from precious metals and stones. In 2020 the company’s profit amounted to almost 2,3 billion RUB.
For the last five years, the average profit values show the decreasing tendency (Picture 5).
Over a five-year period, the average net profit values of ТОP-1000 show the growing tendency, along with this the average net loss is increasing (Picture 6).
Main financial ratios
For the last five years, the average values of the current liquidity ratio were higher than the recommended values - from 1,0 to 2,0, with growing trend (Picture 7).
Within five years, the decreasing trend of the average values of ROI ratio is observed (Picture 8).
For the last five years, this business activity ratio demonstrated the decreasing trend (Picture 9).
96% of ТОP-1000 companies are registered in the Unified register of small and medium-sized enterprises of the Russian Federal Tax Service. Herein, their share in TOP-1000 total revenue is almost 42%, which is twice higher than the national average value in 2018 – 2019 (Picture 10).
Main regions of activity
TOP-1000 companies are registered in 70 regions of Russia and are unequally located across the country. Almost 47% of the largest enterprises in terms of revenue are located Moscow (Picture 11).
Financial position score
An assessment of the financial position of TOP-1000 companies shows that the largest part has the average financial position (Picture 12).
Solvency index Globas
Most of TOP-1000 companies got superior/high and strong/medium Solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully (Picture 13).
A complex assessment of the largest jewellery companies, taking into account the main indexes, financial ratios and indicators, demonstrates the presence of negative trends within 2016-2020 (Table 1).
|Trends and assessment factors||Relative share, %|
|Dynamics of average net assets value||-10|
|Growth/drawdown rate of average net assets value||-10|
|Increase / decrease in the share of enterprises with negative net assets||10|
|The level of capital concentration||-10|
|Dynamics of average revenue||-10|
|Growth/drawdown rate of average revenue||-10|
|Dynamics of average profit (loss)||-10|
|Increase / decrease in average net profit of companies||10|
|Increase / decrease in average net loss of companies||-10|
|Increase / decrease in average values of current liquidity ratio||5|
|Increase / decrease in average values of ROI ratio||-10|
|Increase / decrease in average values of assets turnover ratio, times||-10|
|Share of small and medium-sized businesses by revenue more than 20%||10|
|Financial position (the largest share)||5|
|Solvency index Globas (the largest share)||10|
|Average value of factors||-3,1|
favorable trend (factor), unfavorable trend (factor)
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.
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.
|Name, INN, region||Revenue,million RUB||Net profit (loss),million RUB||Profitability of sales, %||Solvency index Globas|
|LLC ZOLOTO YUGA
INN 6164304062 Rostov region
INN 7805555551 St. Petersburg
INN 6163095867 Rostov region
|LLC ZOLOTO URALA
INN 6670352263 Sverdlovsk region
|LLC STOLITSA DAIMOND
INN 9705071310 Moscow
|LLC M STIL
INN 5032231313 Moscow region
|6 208,0||7 037,9||416,7||1 256,4||10,92||26,90||224 Strong|
|LLC BULGARI RUSSIA
INN 7710969160 Moscow
|1 404,2||1 655,3||-66,3||143,0||2,51||18,21||290 Medium|
|LLC JEWELLERY HOUSE KRISTALL
INN 4824030956 Lipetsk region
|2 621,5||2 391,8||7,0||161,2||7,48||13,95||226 Strong|
INN 7743765161 Moscow
|5 374,8||3 761,6||64,6||-639,6||17,37||3,32||338 Adequate|
|LLC EPL Diamond Jewelry
INN 1435171885 Moscow
|1 572,4||1 405,9||83,2||-30,2||6,84||0,88||306 Adequate|
|Average value for TOP-10 companies||2 082,3||2 018,7||129,5||170,5||17,79||21,35|
|Average value for TOP-500 companies||88,3||81,4||7,7||10,0||6,38||5,66|
growth of indicator in comparison with prior period, 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).