Profitability of sales in cereals trade.

Information agency Credinform has prepared a ranking of the largest Russian companies engaged in wholesale trade of cereals. The largest enterprises (TOP-10) in terms of annual revenue were selected according to the data from the Statistical Register for the available periods (2016-2018). Then the companies were ranged by profitability of sales (Table 1). The analysis was based on the data from the Information and Analytical system Globas.

Profitability of sales (%) is the share of operating profit in the sales volume of the company. The ratio characterizes the efficiency of the industrial and commercial activity and shows the company’s funds, which remained after covering the cost of production, interest and tax payments.

The rage of ratio’s values within companies of the same industry is defined by the differences in competitive strategies and product lines.

For the most full and fair opinion about the company’s financial position the whole set of financial indicators and ratios should be taken into account.

Table 1. Net profit, revenue, profitability of sales, solvency index Globas of the largest companies engaged in wholesale trade of cereals (ТОP-10)
Name, INN, region Revenue, million RUB Net profit (loss), million RUB Profitability of sales, % Solvency index Globas
2017 2018 2017 2018 2017 2018
1 2 3 4 5 6 7 8
INN 5407048460 Novosibirsk region
up484,49 down262,90 up35,78 up41,98 down10,36 up14,16 192 High
INN 7734623403 Moscow
up3754,23 down3598,11 up86,35 down68,17 up7,42 down4,64 240 Strong
INN 7814413641 Saint-Petersburg
down11464,57 down10950,40 down203,01 down73,53 down3,95 down3,52 261 Medium
INN 3235013772 Bryansk region
up1679,76 up1864,34 up54,57 down29,85 up5,83 down3,34 221 Strong
INN 2289006988 Altai region
up546,10 up1057,87 up2,44 up10,91 down-2,40 up1,95 256 Medium
INN 2312018180 Krasnodar region
down8335,47 down7987,74 down182,84 down176,51 down1,76 down1,34 228 Strong
INN 2540180383 Primorsky Krai
up378,30 up506,81 up10,10 up23,24 up3,94 down1,08 245 Strong
INN 5406521885 Novosibirsk region
up292,00 up361,96 up1,41 up1,69 down0,49 up0,56 198 High
INN 2723087134 Khabarovsk region
down222,87 up306,08 down-5,61 up0,62 down-2,50 up0,24 246 Strong
INN 4627003174 Belgorod region
down1377,93 down1179,72 down-84,24 up3,29 down-11,76 up-3,53 273 Medium
Average value for TOP-10 companies down2853,57 down2807,60 down48,67 down42,98 down1,71 up2,73  
Average industry value down200,03 down199,56 up2,63 up4,72 down3,38 up4,20  

Up growth of indicator in comparison with prior period, Down decline of indicator in comparison with prior period

In 2018, the average value of profitability of sales for TOP-10 companies is lower than average industry value: seven companies improved the results.

Picture 1. Profitability of sales and revenue of the largest Russian companies engaged in wholesale trade of cereals (ТОP-10) Picture 1. Profitability of sales and revenue of the largest Russian companies engaged in wholesale trade of cereals (ТОP-10)

Within 10 years, the average industry indicators of profitability of sales showed the growing tendency. (Picture 2).

Picture 2. Change in average industry values of profitability of sales of Russian companies engaged in wholesale trade of cereals in 2009 – 2018 Picture 2. Change in average industry values of profitability of sales of Russian companies engaged in wholesale trade of cereals in 2009 – 2018
TOP-10 of European football clubs by income in 2019

Information Agency Credinform presents a ranking of European football clubs by income in 2019. Using the Information and Analytical system Globas и базу данных Orbis, продукт Bureau van Dijk, the experts of the Agency selected TOP-10 of football clubs by 2019 total income, analyzed their sources and structure.

Table 1. Income and income structure of TOP-10 European football clubs for 2019
Rank Club Income for 2019, billion RUB Income structure, billion RUB
Games Broadcasting Commercial activity
1 (+1) Barcelona
61,1 +21,8% 11,5 21,7 27,8
2 (-1) Real Madrid
Реал МадридSpain
52,0 +0,8% 9,9 17,7 24,4
3 (=) Manchester United
50,1 +2,7% 8,5 19,2 22,4
4 (=) Bayern
45,3 +4,9% 6,3 14,5 24,5
5 (+6) Juventus
44,5 +20,0% 6,3 20,2 18,0
6 (+1) Paris Saint-Germain
43,7 +17,4% 8,0 10,7 25,0
7 (=) Liverpool
42,3 +10,6% 6,6 21,0 14,7
8 (-3) Manchester City
41,9 +7,4% 4,3 19,7 17,9
9 (+1) Tottenham Hotspur
Тоттенхэм ХотспурEngland
35,8 +21,7% 6,4 19,0 10,4
10 (-2) Chelsea
33,8 -3,2% 5,0 15,0 13,8
28 (-3) Zenit
14,8 +1,5% 0,9 1,2 12,7

Source: Information and Analytical system Globas by Credinform; Orbis database by Bureau van Dijk; Club incomes were converted into rubles at the average dollar exchange rate for January 2020.

Football club Barcelona with the highest incomes for 2019 (61,1 billion RUB) is on the top of the ranking. Commercial activity forms 46% of the budget (27,8 billion RUB) and makes the club the first among European teams by this type of income. FC Barcelona is the most recognizable sports organization in the world. For the men's soccer team stands Lionel Messi, one of the famous players on the planet. Thanks to the Argentine, the club occupies high positions in all the Tops. The increase in income over the previous year amounted to 21,8%. The increase is largely due to the signing of the French forward Antoine Griezmann. At the beginning of the 2019/20 season, Barcelona announced the signing of the 2018 World Champion for 8,2 billion RUB. The footballer not only helped increase sales of club paraphernalia, but also provided part of the income from his exclusive contracts with Puma and Head & Shoulders.

Barcelona is followed by its main rival - Real Madrid (52,0 billion RUB). The royal club earned the most from commercial activities (24,4). At the end of 2019, the club lost leadership due to unsatisfactory results in the championship and in the European arena. Real Madrid still cannot recover from Cristiano Ronaldo’s departure, sales revenue has declined, attendance has decreased, and the game of the football is far from perfect.

The third is Manchester United (50,1 billion RUB). The English club has long been turned into a successful commercial project. Mancunians earn money through the sale of paraphernalia, famous players and advertising. The most famous player in the team is the central midfielder Paul Pogba. T-shirts with his last name are the best-selling in Adidas fan shops and stores. Manchester United is a pioneer in signing record sponsorship contracts and, unlike competitors, has signed its agreements much earlier. Under an agreement with Adidas, Manchester United receives 6 billion RUB, and the contract of the title sponsor Chevrolet annually brings 5 billion RUB to the club’s treasury. However, unsatisfactory sports achievements in the championship and non-entry into the Champions League - the most prestigious European tournament, may push for the loss of the title of the most profitable club in England for the first time in 23 years.

In terms of income, Bavaria from Munich was ranked the 4th (45,3 billion RUB). The German club is the most recognizable in the world, and commercial activity for over 4 years brings more than 24 billion RUB. The team successfully performs in the German championship, winning the championship gold 5 times in a row. However, unsatisfactory results in the Champions League may affect the overall profitability of the club. The last victory in the Champions League was in the 2012/13 season, after which the team lost from one point to the final for four times.

According to the results of 2019, Turin Juventus (44,5 billion RUB) moved to the fifth position of the ranking. The club is owned by the Agnelli family, one of the richest families in Italy. They inherit the club, passing it from generation to generation. In addition to Juventus, they own automobile factories Fiat and Jeep. The team from Turin is the most titled in Italy: 35-time Champion of the domestic championship, 13-time winner of the Italian Cup, 2-time winner of the Champions League. The transition of the starry Portuguese Cristiano Ronaldo has attracted the attention of advertisers, fans and investors. Income from commercial activities grew by 30%, and total profitability increased by 20,0%.

Paris Saint-Germain earned 43,7 billion RUB. The French club ranks the second in term of income from commercial activities (25,0 billion RUB). A new partnership agreement with Nike will annually bring the club over 5 billion RUB. The collaboration of Nike Jordan and Paris Saint-Germain has contributed to the growth of sales of paraphernalia and sportswear. Thanks to their star forwards, Parisians have some of the most expensive advertising contracts among European teams. Neymar Jr. and Kylian Mbappe provide the club the leading positions in all ratings.

English football’s grandees got from 7th to 10th positions - Liverpool (7th; 42,3 billion RUB), Manchester City (8th; 4,9 billion RUB), Tottenham Hotspur (9th; 35,8 billion RUB), Chelsea (10th; 33,8 billion RUB). The clubs are not able to compete with the rest of the teams in term of income, but they are in the top due to the money earned from broadcasting. In 2019, the total value of the proceeds from the sale of the rights to broadcast the games brought the club over 74 billion RUB. The 2018/19 season was one of the most successful for the British. Liverpool and Tottenham played in the Champions League final, and Chelsea and Arsenal from London played in the final of the second most important European tournament, the Europa League. According to the results of that season, Manchester City lost to Tottenham from a couple of points to the final. However, the position of the British in the overall ranking of income may change at the end of the 2019/20 season. The finalists of the Champions League last season took off at the 1/8 stage, and the MC received a ban on playing in the Old World tournament, due to financial fraud.

It is noteworthy that St. Petersburg Zenit was in the TOP-30 of teams in term of income for 2019 (14,8 billion RUB). The highest income exceeding 12 billion RUB comes from commercial activities. Zenit is considered the richest football club in Russia. The ultimate owner of the club is JSC Gazprom. According to the results of the 2018/19 season, Zenit for the first time in 5 years returned St. Petersburg to number one and got into the Champions League.

The results of the ranking showed that all football clubs except English have incomes generated from successful commercial activities. The decrease in profitability for this type of activity can seriously affect the financial condition of organizations. Football clubs have long become global brands competing for the most profitable contract.