Return on assets of manufacturers of flour milling products

Information agency Credinform offers to get acquainted with the ranking of Russian manufacturers of flour milling products. The companies with the highest volume of revenue involved in this activity were selected by the experts according to the data from the Statistical Register for the latest available period (for the year 2013). Then, the first 10 enterprises selected by turnover were ranked by decrease in return on assets.

Return on assets is a financial indicator, which characterizes benefit from the use of all assets of an organization. This ratio is calculated as the relation of net profit and interests payable to company’s total assets value and shows, how many monetary units of net profit were earned by each unit of total assets.

There are no specified or recommended values prescribed for profitability ratios, because their values vary strongly depending on the branch.

Return on assets and solvency index of the largest Russian manufacturers of flour milling products, TOP-10
Name, INNRegionTurnover for 2013, in mln RUBReturn on assets, (%)Solvency index GLOBAS-i®
1 Peterburgsky melnichny kombinat OJSC
INN 7810229592
Saint-Petersburg 3549 13,17 197 (the highest)
2 Leningradsky kombinat khleboproduktov im. S.M. Kirova OJSC
INN 7830002303
Saint-Petersburg 5748 10,95 209 (high)
3 Aleisk zernoprodukt imeni S.N.Starovoitova CJSC
INN 2201000766
Altai territory 5903 9,74 186 (the highest)
4 Makfa OJSC
INN 7438015885
Chelyabinsk region 12 772 9,45 207 (high)
5 Melnik OJSC
INN 2209006093
Altai territory 4760 9,14 203 (high)
6 Magnitogorsky kombinat khleboproduktov – Sitno CJSC
INN 7414001724
Chelyabinsk region 5028 6,93 224 (high)
7 Starooskolsky kombinat khleboproduktov CJSC
INN 3128033189
Belgorod region 4108 2,73 235 (high)
8 Kazanzernoprodukt OJSC
INN 1658001372
Republic of Tatarstan 3631 1,80 239 (high)
9 Melkombinat OJSC
INN 6903001493
Tver region 4881 0,57 250 (high)
10 Penzensky kombinat khleboproduktov OJSC
INN 5834002580
Penza region 3671 0,00 250 (high)

At year-end 2013 the largest ten domestic manufacturers of flour milling products succeeded in increasing of cumulative turnover by 22% in comparison with the year 2012, what is surely a good result. The experts explain such impressive indicators by low prices for wheat and rye – basic raw material of flour milling industry. Along with that the export of flour in 2013 remained at lower level, because in spite of reduction the prices for Russian flour remained still high enough for majority external markets.

The first five companies showed the return on assets value being above 9%, what is a good result. Now therefore, from each ruble invested in assets the enterprises generate more than 9 kopecks of net profit.

The company Peterburgsky melnichny kombinat OJSC took the lead in this ranking with return on assets ratio 13,17%. The enterprise got the highest solvency index GLOBAS-i®, what characterizes it as financially stable.

manufacturers of flour milling products

Return on assets of manufacturers of flour milling products, TOP-10

The leader of Russian flour milling market, the company Makfa OJSC, takes the 4th place of the ranking with the return on assets value 9,45%. The enterprise closed the year 2013 with revenues equal to 12 772 mln RUB, what is by 20% more than in 2012. The company got a high solvency index GLOBAS-i®, what testifies to that it can pay off its debts in time and fully.

Penzensky kombinat khleboproduktov OJSC rounds out the represented ranking with the return on assets value 0%, what testifies to an irrational use of company’s assets. However, considering the combination of both financial and non-financial factors, the enterprise got a high solvency index GLOBAS-i®.


Should we wait for the reduction of taxes?

In the December’s Address to the Federal Assembly Vladimir Putin has made it clear to the entire Russian business community that in spite of difficult macroeconomic conditions and bad external environment, the state does not intend to increase taxes, as well as payments in mandatory funds until 2019.

The prime-minister Dmitry Medvedev stated that the Government of Russia in its turn is ready to debate a proposal on reduction of this or that tax in Russia. In view of the decision of the Central Bank to raise its key rate up to 17%, the statements of two senior officials should reassure entrepreneurs, for many of whom the upcoming year will be very difficult. The predictability of the tax legislation is intended to compensate somewhat for the effect of a sharp rise in price of borrowed capital.

As of December 5th the Russian government has also received instruction from the president Vladimir Putin to establish a "supervisory holidays" from 1 January 2016. Within their frameworks it will be act a ban on audit of small businesses, in which "no significant violations of the requirements established by the legislation of the Russian Federation have been detected at the end of the preceding three years, except the cases of violations endangering the life and health of citizens". The instruction should be executed until the middle of July 2015.

On the same day, Putin instructed the government to prepare the "offshore amnesty" law until July 15. The Cabinet of Ministers will have to amend the law to allow the "one-time tax and criminal liability relief for Russian officials under the condition of the return of Russian-source income previously moved out by the mentioned persons in foreign jurisdictions without paying the appropriate taxes".