Product costs of manufacturers of concrete

Information agency Credinform prepared a ranking of Russian enterprises - manufacturers of concrete.

The companies with the highest volume of revenue were selected for this ranking according to the data from the Statistical Register for the latest available period (for the year 2013). These enterprises were ranked by decrease in cumulative annual turnover.

Product costs (in RUB) are expenses of an enterprise for manufacture and realization of products, represented in monetary form.

Product costs belong to the most important qualitative indicators, which collectively show all sides of company’s business activity. The level of product costs is connected with volume and quality of production, use of labor time, raw and other materials, equipment, expenditure of payroll budget etc. Product costs, on their turn, are the basis of determination of prices for production. The lower are product costs, the higher is profit and level of profitability. To reduce product costs, it needs to know their composition, structure and factors of their dynamics.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention not only to product costs, but also to all available combination of review data.

Picture. Turnover and product costs of the largest manufacturers of concrete (TOP-10)

The turnover of the largest companies – manufacturers of concrete in the RF (TOP-10) made 29 583 bln RUB, according to the latest published annual financial statement (for the year 2013), and cumulative product costs – 26 464 bln RUB. Now therefore, total expenses of enterprises of this branch are high enough, it is necessary to cut costs, otherwise the probability to get a negative result of net profit increases.

Among industry leaders the main manufacturers of concrete are concentrated in Moscow agglomeration and Saint-Petersburg, what is explained by large volume of construction and new housing supply in these regions.

PKF Stroibeton LLC (Moscow region) is the firm engaged in the manufacture of ready-mixed concrete, mortar, curb stone, asphalt concrete, as well as dry building mixes and concrete products.

Kombinat Mosinzhbeton OJSC (Moscow) is one of the largest Moscow enterprises on manufacture of concrete, concrete products and asphalt concrete. The assortment of goods manufactured by the plant includes more than 70 types of high-quality concrete mixes (from road to extra-strong and hydrotechnical) and 120 types of concrete products.

Beaton CJSC (Saint-Petersburg) has gathered experience in manufacture of road concrete mixes and concretes of different marks and classes: for road construction, for housing and industrial construction, for building and construction of bridge and tunnel structures, as well as concretes for works with built-in-place piles.

According to the independent estimation of the Information agency Credinform, all organizations of the TOP-10 (except TSK-Beton LLC) 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 standing of the branch will be determined to a large extent by speed of housing construction: for 9 months of 2014 the volume of new housing supply countrywide has increased by 24,6% to the relevant period of 2013 – up to 48,2 mln sq. m.

However, the increased value of credit and mortgage programs, as well as unstable macroeconomic situation, could have a negative impact on the dynamics of building sector next year.