Ranking
Absolute liquidity ratio of tea and coffee manufacturers in Russia

Information agency Credinform prepared a ranking of the largest companies in Russia, mainly specializing in the production and supply of tea and coffee.

The TOP-10 list of enterprises was drawn up for the ranking on the volume of revenue, according to the data from the Statistical Register for the latest available period (for the year 2014). These enterprises were ranked by increase in turnover. Moreover following data are presented: on the dynamic of revenue related to the previous period, absolute liquidity ratio and solvency index GLOBAS-i (s. Table 1).  

Absolute liquidity ratio (%) is the relation of the amount of cash, being at the disposal of a company, to short-term liabilities. It allows to determine the share of short-term liabilities, which an enterprise can pay off in the near future (at once), without waiting for the payment of accounts receivable and sales of other assets. The recommended value is > 0,15. The higher is the indicator the better is the solvency of an enterprise. 

On the other hand, too high ratio value may testify to irrational capital structure, out-of-work assets in the form of cash and funds deposited in accounts, that depreciate and lose their initial liquidity in view of time factor and inflation (at the time of their receipt). 

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention not only to the level of profitability of investments, but also to all presented combination of financial indicators and company’s ratios.

Table 1. Revenue, revenue dynamics, absolute liquidity ratio and solvency ratio GLOBAS-i® of the largest tea and coffee manufacturers (TOP-10)
NameRegionRevenue, in mln RUB, for 2014Revenue increase,%Absolute liquidity ratio,  %Solvency index GLOBAS-i®
1 Orimi LLC
INN 4703044256
Leningrad region 26 704 18,1 0,2 203 high
2 Shtraus LLC
INN 7726584503
Vladimir region 7 538 18,8 0,0 297 high
3 Fes Produkt LLC
INN 5007049413
Moscow region 5 224 23,1 0,0 262 high
4 Kompaniya May LLC
INN 5052013232
Moscow region 5 119 20,0 0,0 205 high
5 Yakovlevskaya chaerazvesochnaya fabrika LLC
INN 5074021100
Moscow region 3 018 -3,5 0,0 184 the highest
6 Paulig RUS LLC
INN 6949003920
Tver region 2 292 13,1 0,3 319 satisfactory
7 Chibo SNG LLC
INN 7710502329
Moscow 2 053 -11,3 0,1 296 high
8 Santi LLC
INN 7702371288
Moscow 2 000 -7,4 0,1 360 satisfactory
9 Orimi Treid CJSC
INN 7804045886
Saint-Petersburg 1 834 -69,4 0,2 213 высокий
10 SlavKofe LLC
INN 7706514177
Moscow 1 736 23,9 0,1 310 satisfactory
 
The best value on the absolute liquidity ratio showed Paulig Rus LLC - 0,25%, which is a subsidiary of the Finnish company Gustav Paulig Ltd. In Finland and the Baltic countries the enterprise is the market leader, and in Russia - the second largest supplier of roast coffee. 
 

Revenue and absolute liquidity ratio

Picture 1. Revenue and absolute liquidity ratio of the largest tea and coffee manufacturers (TOP-10)
 
The annual revenue of enterprises from the TOP-10 list of the largest companies, mainly specializing in the production of tea and coffee, made 57,5 bln RUB at the end of 2014, that is by 5,5% higher than the cumulative figure of the same organizations in the previous year.
 
Orimi LLC demonstrates the highest revenue among all organizations in the industry (26,7 bln RUB), the absolute liquidity ratio, being equal to 0,17%, meets the recommended value. 
 
The group of companies «Orimi Treid» (Orimi Trade Group) is the leader of the Russian market of natural hot drinks in terms of production, technologies, distribution, Russia's largest importer of tea and coffee raw materials, one of five leading operators in the world market. The company is a leader of the national tea markets of Belarus, Moldova, dominates in the markets of Kazakhstan and Kyrgyzstan.
 
In the Russian coffee market «Orimi Treid» takes the 3rd place, being behind only transnational corporations and in the lead in the segment of natural roast coffee. The share exceeds 30% in natural units (Nielsen, 2014).
 
On key financial indicators «Orimi Treid» is one of 400 the largest Russian companies, according to the magazine Expert and in the rating Forbes «200 largest private companies in Russia».
Tea and coffee trademarks of the company have high ratings of brand awareness and a stable sales dynamics – tea Greenfield, TESS, «Princess Noori», «Princess Java», «Princess Kandy», «Princess Gita», «Shah», «Zhemchuzhina Nila», coffee «Jokey» and Jardin.
 
Article
How to improve efficiency of own business under high inflation and expensive dollar?

The year 2015, difficult in relation to economy, is coming to an end. Some difficulties were caused by such factors as decline in market price on oil and gas – main sources of Russian budgeting; depreciation of national currency in relation to USD; GDP negative growth as a result of decrease in production volume, work and services, earnings of export operations; reduction of investments; unreasonable prices growth; decline in demand and purchasing capacity; high credit rates and others.

The state of the economy in 2016 does not seem to be rosy. Next year proceeding of inflation growth is expected on the back of further reservation (or decline) of market price on oil and gas and depreciation of RUB to USD; decrease in consumer demand and investments; lack of liquidity; delay of credit provision; growth of payment delay and other factors that typical for stagnating economy. 

Under such conditions the Central Bank of the RF believes that it is possible to change the economic situation with the help of stable prices. In this case mega-regulator focuses its efforts on solving two main tasks: inflation targeting* on 4% rate to 2017 and control of poverty, that is control of decline in real salary of citizens.

* Inflation targeting — complex of measures taken by the state authorities to control the inflation rate in the country. Measures include establishment of plan inflation indicator for some period and selection of proper monetary instruments to control the inflation rate.

Currently experts mark out several stability trends. They include: military-industrial complex; government order and government support; food industry of economy-class and industries produce goods for import substitution.

Business analytics consider those companies successful that find high demanded in crisis services; provide consumers and partners with interesting options, thus becoming more customer-oriented. Practice shows that companies could overcome difficult period in economy with using strict financial tactics.

What measures for business under conditions of high inflation and expensive dollar should be taken for overcoming negative trends in economic development? 

Experts list following measures:

  • to make an audit of expenses, to define main effective ways of company development and to take reasonable austerity measures;
  • to minimize costs on industrial, management and other activities;
  • refuse from non-core, unpromising, costly assets;
  • to develop efficient business-projects; 
  • to reduce a prime cost of output products and provided services;
  • to focus on consumer demands;
  • to consider low-income consumers while choosing the price or raise prices only on  high quality products; 
  • to implement instruments for increase in labor productivity;
  • to take different business tasks on outsourcing;
  • to increase market share with the help of other regions;
  • to employ funds under profitable/noteworthy conditions, in case of having accumulated funds;
  • to apply for splitting company into several parts, that let to minimize taxation and use existing preferences  and others. 
Consequently, important recommendation for entrepreneurs wishing to keep and develop business in 2016 is rising of work efficiency for the company.