Information agency Credinform prepared a ranking of Russian manufacturers of pharmaceutical goods on product costs. The companies with the highest volume of revenue were selected for this research according to the data from the Statistical Register for the latest available period (for the year 2012). Then, the first 10 enterprises selected by turnover were ranked by decrease in the share of the costs of output in company turnover.
Product costs are costs (expenses) for manufacture of products, execution of work or provision of services. It is the most important qualitative indicator, showing how much an enterprise spends on production and distribution. The lower are product costs, the higher is profit and, accordingly, production profitability. There are no specified values for the mentioned indicator and for assessment of the efficiency of cost management it is interesting to observe, which share in company turnover is taken by product costs.
|№||Name, INN||Region||Turnover for 2012, in mln RUB||Product costs, in mln RUB||Share of product costs in turnover, (%)||Solvency index GLOBAS-i®|
|1||Valenta Farmatsevtika OJSC
|Moscow region||5 538||857||15||220 (high)|
|Altai territory||6 577||1 280||19||155 (the highest)|
|Kursk region||15 043||5 054||34||241 (high)|
|4||Nizhegorodsky khimiko-farmatsevtichesky zavod OJSC
|Nizhny Novgorod region||13 900||6 290||45||182 (the highest)|
|5||Khimiko-farmatsevtichesky kombinat AKRIKHIN OJSC
|Moscow region||6 961||3 267||47||191 (the highest)|
|6||FARMFIRMA SOTEKS CJSC
|Moscow region||4 472||2 297||51||202 (high)|
|Moscow region||4 220||3 153||75||237 (high)|
|Moscow||15 596||12 541||80||229 (high)|
|9||FARMSTANDART-UFIMSKY VITAMINNY ZAVOD OJSC
|Republic of Bashkortostan||24 165||19 466||81||176 (the highest)|
|10||MEZHREGIONALNAYA FARMATSEVTICHESKAYA PROIZVODSTVENNO-DISTRIBYUTORSKAYA KORPORATSIYA BIOTEK CJSC
|Moscow||8 953||-||-||250 (high)|
The average share of product costs in turnover for Russian pharmaceutical companies makes 70%, what points to high expenses for production. Such results are a norm for knowledge-intensive industries.
The first three companies of the ranking are presented by following organizations: Valenta Farmatsevtika OJSC (15%), EVALAR CJSC (19%) and Farmstandart-Leksredstva OJSC (34%). The enterprises showed low enough values of the indicators of product costs relative to their turnover. Such result testifies to a competent approach in control of own costs. All enterprises got a high and the highest solvency index GLOBAS-i®, that characterizes it as financially stable.
Share of the cost of output in turnover of the largest manufacturers of pharmaceutical goods in Russia, TOP-10
Three from TOP-10 companies showed the indicator value above the industry average value: F-Sintez CJSC (75%), SANDOZ CJSC (80%) and FARMSTANDART-UFIMSKY VITAMINNY ZAVOD OJSC (81%). These enterprises should approach to the control of own costs more rationally. However, considering the combination of both financial and non-financial indicators, all companies got a high and the highest solvency index Globas-i®.
For the company MEZHREGIONALNAYA FARMATSEVTICHESKAYA PROIZVODSTVENNO-DISTRIBYUTORSKAYA KORPORATSIYA BIOTEK CJSC the indicator value «Share of product costs in turnover» wasn’t calculated because of lack of data.
In Russian import the share of agricultural products of countries felt under Russian sanctions made 46% at year-end 2013.
In response for sanctions against Russia from Western countries the Government of the RF published the list of agricultural products, raw materials and provision prohibited for importation into the territory of Russia. The list includes cattle meat, pork meat and edible by-products of poultry, fish, crustaceans, molluscs and other aquatic invertebrates, milk and dairy products, as well as vegetables, edible roots, tuber crops and fruit.
Herewith the sanctions won’t concern baby food and goods, which people buy and bring from abroad by themselves in accordance with customs rules in force.
The import ban, coming into force since the 7th of August 2014, is valid for countries of European Community, the USA, Canada, Australia and Norway for the term of one year. However, the embargo term can be reconsidered by the change of political situation.
According to estimates of the experts from Credinform, the total volume of importation of agricultural products, raw materials and provision felt under embargo into the territory of Russia made 597,3 bln RUB at year-end 2013, herewith 46% of supplies or 275 bln RUB in monetary value were accounted for countries from Russian list of sanctions.
Following organizations can be distinguished among the largest companies-importers regarding the results of the previous year: Finnish manufacturer of dairy products Valio, Norwegian company for seafood production MARINE HARVEST, as well as International French private dairy concern Lactalis (ТМ President). Note, that after publication of sanctions the stock prices of MARINE HARVEST felt down by 12%, showed the worst dynamics for last six months.
It should be also noted, that in spite of an exacerbation of economic and political inter-relations between Russia and Western countries because of Ukrainian crisis, regarding the results of the 1st quarter of the current year, the volume of import from countries included in the black list of agricultural products increased by 54% in comparison with the 1st quarter of the previous year and reached 160,7 bln RUB.
|№||Country||Products||Import volume at the end of the 1st quarter 2014, in mln RUB|
|1||POLAND||FRESH APPLES, OTHERS||3806|
|2||NORWAY||ATLANTIC SALMON AND DANUBE SALMON, FRESH OR COOLED||3622|
|4||AUSTRALIA||BUTTER WITH FAT CONTENT NOT MORE THAN 85%,||1520|
|5||LITHUANIA||FRESH OR COOLED TOMATOS||1236|
|7||LITHUANIA||CHEESES WITH FAT CONTENT NOT MORE THAN 40%||1117|
|8||NORWAY||FRESH AND COOLED FISH||1080|
The Government of the RF is expecting internal positive impact from imposed restrictions. It is believed, that domestic agricultural producers win first of all, who complained many times, that it is difficult for Russian goods to make it into trading networks.
However, consumers express fear by now concerning possible deficit and price increase. The Government is instructed to ensure the balance of product markets and prevent the speedup in growth of prices on agricultural products, raw materials and provision.