Ranking
Product profitability of Russian cattle-breeding companies

Information agency Credinform prepared a ranking of Russian cattle-breeding companies.

The companies with highest volume of revenue were selected for this ranking according to data from the Statistical Register for the latest available period (for the year 2012). These enterprises were ranked by decrease in product profitability ratio.

Product profitability (%) is the ratio of sales profit (loss) to its total value (amount of expenses for production, business and administrative expenses). It shows the results of current expenditures, efficiency of financial management. If the ratio value is negative, it testifies that a company has sales loss.

There are no recommended or specified values prescribed for the mentioned ratio, because it varies strongly depending on the branch, where each concrete enterprise conducts business. The company should be assessed relying on industry-average indicators of the sector, where it operates, as well as on other enterprises of this industry.

Table.  Product profitability, turnover and solvency index of the largest cattle-breeding companies in Russia (TOP-10)
NameRegionTurnover,in mln  RUB, for 2012Product profitability, %Solvency index GLOBAS-i®
1 BELGORODSKY BEKON LLC
INN: 3123341888
Belgorod region 5 593 906 000 43,2 231(high)
2 Ptitsefabrika Vasilevskaya OJSC
INN: 5809022198
Penza region 6 652 779 000 29,3 214(high)
3 PTITSEFABRIKA SEVERNAYA CJSC
INN: 4706002688
Leningrad region 11 924 024 000 26,9 197(the highest)
4 BELGORODSKIE GRANULIROVANNYE KORMA LLC
INN: 3116003662
Belgorod region 13 635 668 000 21,3 216(high)
5 CHELNY-BROILER LLC
INN: 1639025000
Republic of Tatarstan 6 515 808 000 21,0 146(the highest)
6 STAVROPOLSKY BROILER CJSC
INN: 2623016651
Stavropol territory 6 542 575 000 14,6 259(high)
7 PRIOSKOLE CJSC
INN: 3123100360
Belgorod region 27 851 007 000 11,7 203(high)
8 Ptitsefabrika Novo-Ezdotskaya LLC
INN: 3126011038
Belgorod region 6 092 206 000 9,8 236(high)
9 INZHAVINSKAYA PTITSEFABRIKA CJSC
INN: 6805006976
Tambov region 5 789 342 000 8,1 279(high)
10 Svinokompleks Korocha CLSC
INN: 3110009570
Belgorod region 23 092 689 000 1,0 228(high)

 

Russian cattle-breeding companies

Picture 1. Cattle and poultry production for slaughter in live weight, in thous. tons

Cattle-breeding field is developing on the fast track lately. Not so long ago our market depended on import by 70% and more, today the tide is turning – imported products are being superseded by meat of domestic manufacture. Since 1999 the increment of production made 79%, at the end of the previous year the market was supplied with 12 202 thous. tons of cattle and poultry in live weight.

 

Russian cattle-breeding companies

Picture 2. Product profitability and turnover of the largest cattle-breeding companies in Russia (TOP-10)

Cumulative turnover of the first 10 largest cattle-breeding companies of Russia made 113 609 mln RUB at year-end 2012, that is by 36,7% higher, than the indicator of previous year and makes above one third of sales revenue of TOP-100 companies.
The average value of product profitability ratio of TOP-100 is 23%.

It should be noted that among TOP-100 agricultural enterprises of cattle-breeding sector poultry enterprises dominate.
By the analysis of the largest enterprises of the industry only 3 companies from TOP-10 showed the profitability above the average. BELGORODSKY BEKON LLC (43,2%) is one of five the largest complexes of the country, manufacturing 60 thous. tons of meat per annum in live weight. At the present time the organization includes 5 commercial pig-breeding complexes for 4800 heads of breeding pig in each, 1 pedigree complex for 2400 heads of breeding pig, complex for mixed feed manufacture.

Ptitsefabrika Vasilevskaya OJSC (29,3%) is a part of the group «Cherkizovo», focuses on farm poultry raising and output under the brand of the trademark «Vasilevka» of cooled, environmentally friendly poultry meat in the mid-range segment in Penza and Penza region.

PTITSEFABRIKA SEVERNAYA CJSC (26,9%) is the largest poultry plant of the North-West, supplies high-quality products to Saint-Petersburg and neighbour regions.

Other enterprises in the TOP-10 list showed profitability of sales from 1% to 21,3%.

According to the independent estimation of solvency of companies, developed by the Information agency Credinform, all industry leaders got a high and the highest solvency index, what guarantees that organizations can pay off their credit debts in time and fully. Occurrence of bankruptcy in the nearest time is highly improbable, organizations are attractive objects for investment, especially taking into account the potential of the Russian market.

Article
First Crimean companies are added to Globas-i®

First legal persons from Crimean Federal District, registered in the Uniform State Register of Legal Entities of the RF, have been added to Informational system GLOBAS-i®: 17 companies from the Republic of Crimea and 6 – from the city of federal importance Sevastopol. The registration of new enterprises in Crimea has begun on the 3rd of April, since that time the registration centres of the Federal Tax Service of the RF have launched their activity in the district.

Re-registration of already operating companies will begin in the region only after the entry into force of a newly developed bill about bringing to correspondence of legal forms of entities, carrying on business in the territory of Crimea and Sevastopol, with Russian statutory regulations. According to words of Dmitry Grigorenko, Deputy Head of the Federal Tax Service of the RF, about 50 000 companies will be re-registered in Crimea. Moreover, organizations have to file an application for tax registration as Russian legal entity before the 1st of January 2015, after this date those enterprises, which won’t be put on the Russian Register of Legal Entities and registered as branches or representations of foreign companies, won’t be able to carry on business in Crimea.