TOP 10 grain producers

In 2021, the grain harvest in Russia is projected at more than 127 million tons. Cereals are grown by more than 39 thousand enterprises. An assessment of the return on cost ratio of the largest grain producers indicates an increase in income per ruble spent in 2020. All TOP 10 companies have increased their revenues and net profit this year. The same result is likely to be achieved by the end of 2021.

Information agency Credinform has selected the largest agricultural producers of wheat, barley, rye, corn, oats, buckwheat, legumes and oilseeds with the highest annual revenue (TOP 10 and TOP 100), according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2018 – 2020). They were ranked by the return on costs ratio (Table 1). The selection and analysis of companies were based on the data of the Information and Analytical system Globas.

Return on costs (%) is the pre-tax profit to the total sales and production costs. The ratio indicates the volume of income from one ruble spent.

For the most complete and objective view of the financial condition of the enterprise, it is necessary to pay attention to the complex of indicators and financial ratios of the company.

Table 1. Net profit, revenue, return on costs and solvency index Globas of the agricultural grain producers (TOP 10)
Name, INN, region Revenue, million RUB Net profit (loss), million RUB Return on costs, % Solvency index Globas
2019 2020 2019 2020 2019 2020
1 2 3 4 5 6 7 8
INN 6136009530 Rostov region
down511 up3 780 down147 up1 897 down41,84 up104,30 179 High
INN 3109003728 Belgorod region
up5 362 up7 343 up2 249 up3 684 up73,38 up99,91 175 High
INN 5708006707 Oryol region
up1 788 up3 913 up516 up1 865 down48,16 up93,92 157 Superior
INN 4813012610 Lipetsk region
down2 299 up4 528 down607 up1 992 up40,03 up85,09 214 Strong
INN 3113001402 Belgorod region
up4 563 up5 853 up825 up2 415 up24,85 up80,34 166 High
INN 4619004632 Kursk region
up4 196 up6 381 up1 036 up2 711 up33,53 up72,70 189 High
INN 5815000308 Penza region
down2 170 up4 328 up275 up1 659 up15,72 up65,77 147 Superior
INN 6148003452 Rostov region
down2 782 up8 637 up71 up3 170 up3,59 up63,46 218 Strong
INN 2439001597 Krasnoyarsk region
up3 357 up4 007 up882 up1 144 up34,19 up38,73 135 Superior
INN 4804005574 Lipetsk region
up3 499 up6 060 down507 up1 576 down17,82 up36,82 195 High
Average value for TOP 10 up3 053 up5 483 up712 up2 211 up33,31 up74,10  
Average value for TOP 100 up1 271 up1 881 up285 up674 down33,53 up59,53
Industry average value down44 up60 up7 up13 up18,69 up31,15

вверх growth of indicator to the previous period, вниз fall of indicator to the previous period

The average 2020 value of return on costs of TOP 10 and TOP 100 companies was above the average one. None of TOP 10 companies had decrease in 2020. However, the fall was recorded for three companies of TOP 100.

At the same time, all companies gained revenue and net profit in 2020.

The increase in revenue was near 80% and 50% for TOP 10 and TOP 100 respectively, while the industry average value climbed almost 36%.

The average profit of TOP 10 have increased 3 times, TOP 100’s one jumped more than 2 times, and on average in the industry, the growth was recorded by almost 86%.

In general, the industry average return on costs values have raised for three periods during the past 5 years. The highest value was recorded in 2020 and the lowest one was in 2011 (Picture 1).

Picture 1. Change in the average return on costs values of agricultural grain producers in 2016 - 2020 Picture 1. Change in the average return on costs values of agricultural grain producers in 2016 - 2020
Change in legislation

In the second quarter of this year, the Constitutional Court of the Russian Federation made an important decision on the possibility of bringing CEOs of the LLCs excluded from the Unified State Register of Legal Entities of LLC as inactive legal entities to subsidiary liability for the debts of companies. However, this is possible only by the court order.

Subsidiary liability is liability for the debtor company if its property is insufficient to settle accounts with its creditors.

Currently, the legislation provides for the imposition of subsidiary liability on individuals or legal entities controlling the debtor for no longer than 3 years prior to appearance of the signs of bankruptcy in the company, and controlled (i.e., had the opportunity and right) decisions made in the company, entered into transactions on its behalf and determined their terms after the occurrence of signs of bankruptcy, before the bankruptcy petition was accepted by the court.

Recall that the procedure for bringing to subsidiary liability is enshrined in Art. 399 of the first part of the Civil Code of the Russian Federation.

In pursuance of the decision of the Constitutional Court of the Russian Federation, the legislative bodies will have to make appropriate changes to the laws in force.

According to the Information and Analytical system Globas over the past period of 2021, arbitration courts of all instances considered 54 bankruptcy cases of a debtor to be dissolved or absent debtor, which ended in satisfying claims for a total amount of more than 191 million RUB.