Information agency Credinform prepared a ranking of leading meat-processing enterprises in Russia, producing mainly finished goods.
The companies with the highest volume of revenue were selected for this ranking according to data from the Statistical Register for the latest available period (for the year 2013). These enterprises were ranked by decrease in inventory turnover ratio.
Inventory turnover (in times) - relation of sales revenue to average inventory value for a period. It shows the speed of realization of inventory.
Inventory turnover characterizes mobility of assets, which an enterprise puts into the stocking: the faster the money put into inventories return to a company as proceeds from sales of finished goods, the higher is the business activity of this organization, efficiency of resources use by the company taking into account the time factor.
There is no recommended value prescribed for this ratio, because the indicator can vary strongly depending on industry sector, where the concrete enterprise operates. However, the higher is its value, the better.
By the analysis of company’s activity it is expedient to take into account the industry-average indicator.
|№||Name||Region||Turnover, in mln RUB, for 2013||Inventory turnover, in times||Solvency indexGLOBAS-i®|
|Stavropol territory||8 083||78||244 high|
|2||Starodvorskie kolbasy CJSC
|Vladimir region||8 634||38||225 high|
|3||MPZ Agro-Belogore LLC
|Belgorod region||10 907||37||275 high|
|4||Cherkizovsky myasopererabatyvay ushchyzavod OJSC
|Moscow||18 397||36||190 the highest|
|5||Velikoluksky myasokombinat OJSC
|Pskov region||11 188||27||280 high|
|6||Ostankinsky myasopererabatyvayushchy kombinat OJSC
|Moscow||27 240||23||204 high|
|7||Myasokombinat Dubki LLC
|Saratov region||8 663||22||217 high|
|8||Khalyal Ash LLC
|Moscow region||23 342||12||330 satisfactory|
|9||Agro Invest CJSC
|Moscow region||7 860||11||225 high|
|10||Mikoyanovsky myasokombinat CJSC
|Moscow||10 437||9||203 high|
Picture. Sale proceeds and inventory turnover of leading meat-processing enterprises in Russia (TOP-10)
The turnover of the largest Russian meat-processing enterprises (TOP-10) made 134 751 bln RUB, according to the latest published annual financial statement (for the year 2013).
The average value of inventory turnover of TOP-10 organizations is 29 times.
Ostankinsky myasopererabatyvayushchy kombinat OJSC - is the leading Russian manufacturer of products of meat-processing and semi-finished goods, which realizes the complete inventory turnover 23 times a year. In 2013 the sales volume of the plant exceeded 168 thousand tons, thereby consolidated its leading positions in the meat market.
The rate of inventory turnover being higher, than all enterprises average, was showed only by four companies from TOP-10 list – they are as follows:
- Ptitsekombinat LLC (78 times) - is one of the largest poultry plants in southern Russia;
- Starodvorskie kolbasy CJSC (38 times) – produces sausage products, ham;
- MPZ Agro-Belogore LLC (37 times) – vertically-integrated holding company, which specializes in manufacture of pig meat on a commercial scale and realization of fresh meat products in finished consumer package;
- Cherkizovsky myasopererabatyvayushchy zavod OJSC (36 times) – today it is one of the largest manufacturers of meat products in Russia. The plant is the main enterprise of meat-processing segment of «Cherkizovo» Group.
The rest participants of TOP-10 list showed the rate of inventory turnover being lower, than the branch average.
According to the independent estimation of the Information agency Credinform, all organizations of the TOP-10 list (except Khalyal Ash LLC - new entrant, producing meat and meat products, which meet Muslim standards for this product) got a high and the highest solvency index, what can signal to potential investors, that the largest market players can pay off their debts in time and fully in the moment of their incurrence.
The cumulative turnover of 50 the largest companies increased in 2013 by 16,15% in comparison with the year 2012 and made 30 081 bln RUB. By that 56,3% of the total turnover of the TOP-50 enterprises is accounted for by organizations of the base material sector.
According to the results of the year 2013, the largest volume of revenue was represented by two base material giants - Gazprom OJSC and NK Rosneft OJSC. By that NK Rosneft OJSC showed the maximum revenue gain in comparison with the year 2012 among TOP-10 enterprises. Such impressive results of the previous year companies’ representatives associate with the enhancement of efficiency of geological exploration, as well as with the increase of control over operating costs. So that at year-end 2013 the operating costs on extraction made 156,76 RUB/barrels (the ruble-dollar rate as of the end of the year 2013), what is the best specific indicator among public oil companies in the world.
Picture 1. Dynamics of the turnover of the largest Russian companies, TOP-10
The largest slowdown in the volume of revenue at year-end 2013 among the first ten companies is showed by Kredit Sviss Sekyuritiz LLC (Moscow). At year-end 2013 the company’s turnover made 983 bln RUB, what is by 12,34% less, than for the similar period of the previous year. The enterprise is a part of Swiss financial conglomerate and carries out brokerage and dealer activity on the territory of Russia.
Speaking about branch differentiation, it should be noted, that more than half of the total turnover of TOP-50 is accounted for by enterprises of the base material sector (56,3%), then follow: companies engaged in financial intermediation (24,73%) and representatives of retailers (5,88%).
Picture 2. Branch differentiation
At year-end 2013 the total net profit (taken into account the loss) of 50 the largest Russian companies on turnover made 2248 bln RUB, among them 79% are accounted for by 10 the largest enterprises on the net profit volume. By that 9 from 10 firms relate to the base material sector of the economy.
Gorno-metallurgicheskaya kompaniya Norilsky nikel OJSC is the only one metals company got shortlisted in TOP-10 on the amount of net profit. Following the results of the year 2013, company’s net profit made 78 305 mln RUB, what is by 12% higher, than in the similar period of the year 2012, i.e. the growth lags behind inflationary changes. However, the enterprise succeeded in cutting of capital expenditure by 27% in the previous year.
|№||Name, INN||Activity||Net profit/loss for 2013, in mln RUB||Turnover for 2013, in mln RUB||Solvency index GLOBAS-i®|
|Base material sector||628 311||3 933 335||164 (the highest)|
|Base material sector||256 517||814 188||166 (the highest)|
|3||Neftyanaya kompaniya Lukoil OJSC
|Base material sector||209 871||260 009||151 (the highest)|
|Base material sector||160 947||254 512||164 (the highest)|
|5||Neftyanaya kompaniya Rosneft OJSC
|Base material sector||136 279||3 544 443||224 (high)|
|6||Lukoil-zapadnaya Sibir LLC ООО
|Base material sector||89 371||631 010||200 (high)|
|7||Gorno-metallurgicheskaya kompaniya Norilsky nikel OJSC
|Metals industry||78 305||272 585||172 (the highest)|
|Base material sector||72 259||245 077||167 (the highest)|
|Base material sector||69 476||299 511||218 (high)|
|10||Aktsionernaya neftyanaya kompaniya Bashneft OJSC
|Base material sector||69 124||517 487||206 (high)|
The total amount of assets of TOP-50 Russian companies made 38 333 mln RUB at year-end 2013. RZHD OJSC is among leaders on the amount of assets, 12% of total volume of assets of 50 the largest enterprises of the country are accounted for by this organization.
|№||Name, INN||Activity||Assets for 2013, in mln RUB||Turnover for 2013, in mln RUB||Solvency index GLOBAS-i®|
|Base material sector||10 848 419||3 933 335||164 (the highest)|
|2||Neftyanaya kompaniya Rosneft OJSC
|Base material sector||4 980 147||3 544 443||224 (high)|
|3||Rossijskie zheleznye dorogi OJSC
|Transport||4 577 538||1 376 582||235 (high)|
|Base material sector||2 550 432||254 512||164 (the highest)|
|Base material sector||2 105 126||814 188||166 (the highest)|
|6||Neftyanaya kompaniya Lukoil OJSC
|Base material sector||1 296 276||260 009||151 (the highest)|
|7||Rossijsky kontsern po proizvodstvy elektricheskoy I teplovoy energii na atomnykh stantsiyakh OJSC
|Energy industry||1 240 961||232 857||211 (high)|
|8||Aktsionernaya kompaniya po transportu nefti Transneft OJSC
|Base material sector||930 257||704 714||159 (the highest)|
|9||Gazprom neft OJSC
|Base material sector||899 540||1 178 064||200 (the highest)|
|10||Gorno-metallurgicheskaya kompaniya Norilsky nikel OJSC
|Metals industry||678 532||272 585||172 (high)|
All companies under review got a high and the highest solvency index GLOBAS-i®, what characterizes them as financially stable.
The results of this investigation confirm the thesis about weak diversification of Russian economy and its raw-material orientation. Such trend can be very dangerous, especially in view of falling prices for energy carriers. However, at year-end 2013 the share of extraction of minerals in country’s GDP reduced only by 0,05%, during the share of manufacturing increased by 0,1%.
Appeared complexity in interrelationship with Western governments in view of Ukrainian crisis and introduced sanctions, create new impulses for solution of these problems. So that at the meeting with young academics in Saratov the President of the RF Vladimir Putin noticed, that western sanctions are the motivation for diversification of country’s economy and for development of non-resource sector of the economy.
Aimed at the support of economic growth and development of economy sectors of highest priority, the government approved the program of the support of investment projects, running in Russia on the basis of project financing. Within created mechanism it is planned to grant credits in the volume up to 500 bln RUB on an accrual basis at year-end 2018. Thereby state guarantees in the volume up to 125 bln RUB will be provided on credits.
Along with that many experts assign an important part in the support of economic growth to representatives of small and medium business, for whom tax holidays will come into force starting next year. However, tax privileges extend only to new enterprises of small and medium business.