Return on equity of companies, producing household chemistry

Information agency Credinform prepared a ranking of companies, manufacturing household chemistry: cleaning products and washing means.

The companies with the highest volume of revenue were selected for the 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 return on equity.

Return on equity (%) is the relation of company’s net profit to its equity capital. It shows how many monetary units of net profit were earned by each unit invested by company owners. It allows to determine the effectiveness of use of the capital invested by the owners.

There are no recommended or specified values prescribed for the mentioned ratio, because its values vary strongly depending on the branch, where each concrete enterprise conducts business.

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 average values of profit, but also to all available combination of financial data.

Table 1. Revenues, return on equity and solvency index of the largest enterprises, producing household chemistry (TOP-10)
NameRegionRevenues, in mln RUB, for 2013Return on equity, %Solvency index GLOBAS-i®
1 Henkel Rus LLC
INN 7702691545
Moscow 45 668,8 57,0 186 the highest
2 Tyanshi LLC
INN 7702745423
Moscow 1 997,8 41,0 249 high
3 Stupinsky Khimichesky zavod CJSC
INN 5045022211
Moscow region 1 542,6 29,7 155 the highest
4 Rekitt Benkizer LLC
INN 7705495411
Moscow 12 901,6 25,6 213 high
5 Zavod sintanolov LLC
INN 5260123469
Nizhnii Novgorod region 3 917,6 20,4 197 the highest
INN 5404105343
Novosibirsk region 1 885,3 20,3 155 the highest
7 Aist CJSC
INN 7830001596
Saint-Petersburg 2 534,1 13,5 215 high
8 Nefis Cosmetiks OJSC
INN 1653005126
Republic of Tatarstan 9 970,0 5,2 247 high
9 Procter and Gamble – Novomoskovsk LLC
INN 7101006354
Tula region 24 842,3 4,1 195 the highest
10 Kompaniya Klever LLC
INN 7730633418
Moscow 2 706,9 0,8 307 satisfactory

companies, manufacturing household chemistry

Picture 1. Return on equity and revenues of the largest companies, producing household chemistry (TOP-10)

The revenues of the largest Russian manufacturers of cleaning products and washing means (TOP-10) made 108,0 bln RUB, according to the latest published annual financial statement, that gives about 81% of the market in monetary terms. Cumulative turnover of enterprises of the TOP-10 list increased by 4,1% to the previous year.

The average return on equity is 21,8% (according to the TOP-10 list). All market leaders have positive value of the ratio, this points to the fact that companies of the rating have net profit.

Henkel Rus LLC showed the highest value of the return on equity (57%); the enterprise is the largest manufacture of household chemistry on annual revenue in the country.
Henkel dominates as well in consumer, as in industrial sector due to such known brands as Persil, Schwarzkopf and Loctite. The company works in three business-lines: Laundry & Home Care, Beauty Care and Adhesive Technologies.

According to the independent estimation of the Information agency Credinform, nine from ten participants of the TOP-10 list got high and the highest solvency index, this points to that the enterprises can pay off their debts in time and fully, while risk of default is minimal.

«Kompaniya Klever LLC» has satisfactory solvency index, that signals to a potential investor that it is necessary to attract supplementary guarantees on purposes of credit granting and business cooperation.

Russian carmakers ask for RUB 1,35 billion

Nowadays the Russian automotive industry goes through a bad stretch. The decreasing sales of passenger cars picked up the pace and amounted to 37,9% for February, 2015 in comparison with the same period of the last year. Within a month the Russians have bought 78 228 cars less than in 2014. Nevertheless, Russia still remains one of the world key car markets. Our country is in the TOP-10 in the world rating and occupies 2,9% of the global car sales.

The reports concerning the decline of production and downsizing on the car plants emerged in the end of the last year. Thus in 2015 the Renault and Nissan suspended the production in Russia and the American largest auto giant General Motors announced last week that Opel and massive models of Chevrolet will exit the Russian market. At the same time other automobile makers emphasize that they are not going to leave the Russian market.

The growth rate reduction of the real household disposable income is marked out among primary causes of the current automakers’ crisis. This lead to decrease in consumer’s demand. In this respect, low-end cars and mid-range segment cars are the first in the firing line.

At the moment the automobile industry of the Russian Federation creates around 1% of GDP, providing about 400 thousand workplaces directly in companies-manufacturers of cars and spare parts. Besides, the industry creates nearly 1 000 000 workplaces in associated and dealer companies.

At the same time the Russian plants announced that they are going to reduce more than 4 thousand employees at the end of 2015. It amounts to 1% industry wide. However in order to estimate the number of injured, it is necessary to recollect that the reductions began last year. In addition, the reduction of employees is expected in the associated dealer centers. They have already started to suffer the customer outflow, due to the fact that citizens with increasing frequency apply to independent service centers, in order to save money.

In spite of the fact that after the crisis of 2008 the Russian car plants significantly reduced the staff, even the optimized staff seems to be redundant under current low demand on the market. However, it might be called for under the recovery of the market, which is forecasted in 2016. In order to provide the staff employment, the car makers asked government to give them RUB 1,35 billion.

Last week the Prime Minister Dmitry Medvedev announced on the government session that RUB 2 billion will be subsidized to car plant staff employment programs. The monetary assets will be distributed between several subjects of the Russian Federation, in particular the Republic of Tatarstan, Altai Territory, Samara and Tver regions. The local authorities could use the money for vocational and practical training of those who lost their job or those who are in danger of being dismissed and in order to organize temporary workplaces. At the same time the important enterprises of these regions, where the economic situation is difficult, will get the government support. First of all, it is subject to such enterprises as Kamaz, AvtoVaz, AltaiVagon and Tverskoi vagonostroitelny zavod.