Information Agency Credinform has prepared the ranking of Russian poultry farms. The largest enterprises engaged in this activity in terms of revenue were selected according to the data from the Statistical Register for the latest available period (for the year 2013). Then, the first ten companies by turnover were ranged by increase in liabilities and assets ratio.
Liabilities and assets ratio refers to a group of financial stability indicators and is calculated as a ratio of long-term and short-term borrowed funds to total assets. The ratio shows which part of the company’s assets is financed by loans. The recommended value is: from 0,2 to 0,5.
|№||Name, INN||Region||Turnover 2013, mln. RUB||Liabilities and assets ratio, (х)||Solvency index Globas-i®|
|Leningrad region||12 612||0,45||191 (The highest)|
|2||OJSC "VASILJEVSKAYA POULTRY FACTORY"
|Penza region||6773||0,5||253 (high)|
|3||LLC Ravis – Sosnovskaya poultry farm
|Chelyabinsk region||5026||0,54||243 (high)|
|Belgorod region||27 080||0,62||228 (high)|
|5||CJSC CHICKEN KINGDOM – BRYANSK
|Bryansk region||5276||0,63||247 (high)|
|Belgorod region||12 697||0,66||242 (high)|
|7||LLC Liskinskaya Investment and Construction Company Broiler
|Voronezh region||4831||0,67||293 (high)|
|8||CJSC "STAVROPOLSKIY BROILER"
|Stavropol region||7274||0,84||258 (high)|
|9||LLC Novo-Ezdotskaya poultry farm
|Belgorod region||7234||0,91||287 (high)|
|10||CJSC Inzhavinskaya poultry farm
|Tambov region||6284||1||289 (high)|
According to 2014 results, the inner production value of meat and offal poultry amounted to 3,9 mln. tons, that is 9,76% more than in 2013.
With the issuing of food embargo in August 2014 the Russian poultry breeders got the chance to improve the positions on the domestic market. The first results of the assumed measures can be observed already now. Thus according to 2014 results, the import value of meat and offal poultry decreased by 17,5% in monetary terms and 24,5% in physical terms. In this regard the ratio of key importers has changed. According to 2014 results, the largest importers on the territory of the Russian Federation were Belarus (29,4% and 22,1% respectively in monetary and physical terms) and Brazil (28,6% and 20,5% respectively in monetary and physical terms). The most significant decrease in import values showed the USA, which was the traditional leader of poultry import to Russian market. By 2014 results the value of American import decreased by 51,4% in monetary terms. On the other hand, the Turkish poultry breeders have strengthened its positions. By 2014 results the value of Turkish import increased by more than 6,5 times.
The first place of the ranking takes JSC SEVERNAYA with ratio value 0,45, which is compliant with established standards. The company has the highest solvency index Globas-i®, which speaks about high ability to repay debt obligations.
Liabilities and assets ratio of the largest poultry farms in Russia, Top-10
The industry leader by turnover according to 2013 results CJSC Prioskolie takes the fourth place of the ranking with ratio value 0,62, which is slightly higher than recommended values. The company has the high solvency index Globas-i®, which shows company’s stable financial condition.
The liabilities and assets ratio value of CJSC Inzhavinskaya poultry farm is 1, which indicates about equality of total borrowings, credits and accounts payable towards all company’s assets; this might have negative effect on company’s financial stability in the future. However according to total financial and non-financial indicators, the high solvency index Globas-i® was assigned to the company.
In conclusion it should be noted that principals should accurately monitor the ratio of assets and all borrowings and credits, as the significant excess of liabilities might have negative effect on company’s financial stability.
During the turbulence period of the Russian economy, devaluation of the ruble, fall in prices in the fuel market and complication of credit conditions, the Ministry of Energy works out a separate plan to support the energy sector of the economy. The plan includes system-wide measures to stabilize the industry, as well as separate measures for significant companies.
The plan proceeds from the fact that in case of review of the forecast of the social and economic development for 2015 for the worse, the payment discipline in energy companies will become more secure and management costs will be reduced. The mechanism of payment of excess power transmitting facilities and the principle "take or pay" will be introduced. In this case a supplier undertakes to deliver the goods up to the maximum volumes fixed in a contract, and a buyer agrees that he/she will pay a certain part of these volumes in any case, regardless of how much he/she has purchased in fact in the period under review. All state-owned companies of the branch will suffer the fate of reduction of investment programs.
Additionally, the plan provides the support of specific enterprises: in particular, "Rosseti" needs help in obtaining funds for compensation of credit interest rates and shortfall in income, as well as in working out of preferential credit schemes.
It is expected to provide financial assistance for electricity suppliers by increasing sales mark-ups considering interest rate development.
However, there are some questions to the plan: instead of increasing the efficiency of the industry and the use of large reserves of energy companies accumulated in the recent years, the Ministry of Energy offers again to write off all risks and financial problems of energy men in payments of consumers, or to use all possible schemes of government support.