Accession of Russia to WTO will ensure sustainable increase in import of cut flowers

In 2012, according to estimation of Credinform experts, import of cut flowers to Russia decreased by 38%. However, as was noted by experts, we should not expect further import reduction of this product. Average growth rate of flower purchases from abroad in the next years will be 4.5% per annum.

The share of imported flowers on the domestic market in past years fluctuates at the level of 80-90%. Reduction of import in 2012, which is related to increase in own production of flowers, will not significantly affect the industry in the future. At the same time, import delivery, according to the analytical survey “Fresh cut flowers market in Russia”, will only grow, which is stipulated by reduction of purchase prices due to Russia’s accession to WTO. After 2013, Russia assumed commitments to reduce rates of duty on import of cut flowers and buds from 15 to 5%.

The biggest volume of cut flowers delivery to Russia – both in natural and in cost respect – is provided by Lithuania, which nether produces nor grows the plants; it is followed by the Czech Republic and by Slovakia. It is interesting that the biggest volume of delivery of roses, which are so beloved by Russian citizens, is also provided by Lithuania, the second place is occupied by the Czech Republic, and the third – by Ecuador. However, the roses imported from the Czech Republic and Ecuador are significantly cheaper than those from Lithuania. Therefore, Lithuania transits batches of goods that were prohibited for import from other countries, also including the Netherlands.

Net profit of animal husbandries of the Northwestern Federal District

Credinform Information Agency evaluated the net profit of major animal husbandries of the Northwestern Federal District. For this ranking, the companies working in breeding different kinds of animals were rated first by the amount of revenue in 2011, and then, the biggest ten were assorted by decrease in net profit for the same period.

Net profit is a part of gross revenue of the company, which rests at its disposal after payment of taxes, duties, charges and other mandatory payments to the budget. The organization decides on allocation of net profit individually. A part of the profit of the company is designated for distribution between its participants, is distributed proportionally among their shares in the company’s chartered equity. Another part is used for increasing current assets of the enterprise, formation of funds and reserves, as well as for reinvestment to the production.

Indicators of financial activity of the biggest animal husbandries in NWFD
NForm of incorporationNameINNNet profit in 2011, ml rub.Turnover in 2011,ml rub.Solvency index
1 OJSC Severnaya Poultry Farm 4706002688 1,866.98 6,425.98 166 (highest)
2 OJSC Zelenetskaya Poultry Farm 1109008546 484.02 2,136.55 142 (highest)
3 OJSC Lomonosov Poultry Farm 4720000202 390.74 2,569.16 225 (high)
4 CJSC Roskar Poultry Farm 4704008395 318.50 3,647.51 173 (highest)
5 CJSC Sinyavinskaya Poultry Farm 4706001780 208.93 2,675.39 223 (high)
6 LLC Belgrankorm – Veliky Novgorod 5305006239 204.72 2,982.71 255 (high)
7 LLC Novgorodskaya Poultry Farm 5310013908 170.77 2,267.35 295 (high)
8 LLC Pskovskaya Poultry Farm 6037002358 157.06 1,579.97 299 (high)
9 LLC Baltptitseprom Business and Poultry Company 3905070698 12.62 1,153.11 262 (high)
10 LLC Velskaya Poultry Farm 2907009009 5.75 1,552.33 298 (high)

According to the results of 2011, the highest turnover in NWFD was exclusively that of enterprises working in poultry farming.

Severnaya Poultry Farm OJSC, which retains the first line in the ranking, is also leading by net profit index. Good results of this company’s activities are confirmed by the highest GLOBAS-i solvency index. The highest index was also assigned to Zelenetskaya Poultry Farm OJSC and Roskar Poultry Farm CJSC, which means the least risk of monetary default.

All other poultry farms of this ranking also showed significant rate of revenue and net profit. Financial coefficients of these companies are at a good level, which is confirmed by high GLOBAS-i solvency index.

So, net profit is a crucial indicator for any enterprise. Its amount is the result of activities of an economic entity. Significant variations of this indicator over time may put the investors on the alert. In this case, it would be necessary to provide detailed explanations of these changes.

However, it would be incorrect to make the assessment of an enterprise on the net profit indices. For a more precise analysis, one should pay attention to sales profits and profit before taxation.