Information agency Credinform has observed trends in the activity of the largest Russian manufacturers of bakery and confectionary products.

Enterprises with the largest volume of annual revenue (TOP-10 and TOP-1000), were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2014, 2015, 2016). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net assets — the indicator, reflecting the real value of company’s property, is calculated annually as the difference between assets on the enterprise balance and its debt obligations. The indicator of net assets is considered negative (insufficiency of property), if company’s debt exceeds the value of its property.

^* — the indicators of growth or decline to the previous period are marked in columns 4 and 5 with green and red fillings, respectively.

Picture 1. Change in TOP-1000 average indicators of the net asset value of manufacturers of bakery and confectionary products in 2014 — 2016

Sales revenue

The revenue of 10 leaders of the industry made 40% of the total revenue of TOP-1000 companies in 2016. It demonstrates relatively high level of competition in the industry (Picture 2).

Picture 2. Shares of participation of TOP-10 companies in the total revenue of TOP-1000 companies for 2016

In general, an increasing tendency of the volume revenue is observed (Picture 3).

Picture 3. Shares of participation of TOP-10 companies in the total revenue of TOP-1000 companies for 2016

Profit and losses

The profit volume of 10 leading enterprises in 2016 made 81% of the total profit of TOP-1000 companies (Picture 4).

Picture 4. Share of participation of TOP-10 companies in the total volume of profit of TOP-1000 companies for 2016

Over a three-year period, the average values of profit indicators of the TOP-1000 group tend to decrease. However, the average value of net loss increases (Picture 5).

Picture 5. Change in the industry average indicators of profit and loss of manufacturers of bakery and confectionary products in 2014 — 2016

Key financial ratios

The total liquidity ratio (the relation of the amount of current assets to short-term liabilities) shows the sufficiency of company’s funds for repayment of its short-term liabilities.

Over the three-year period the industry average indicators of the total liquidity ratio were above the range of recommended values — from 1,0 up to 2,0 (Picture 6). In general, the ratio indicator tends to increase.

The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in the sectors, has developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry.

For companies in the sphere of packaging production the practical value of the total liquidity ratio made from 1,79 and up to 1,38 in 2016.

Picture 6. Change in the average industry values of the total liquidity ratio of manufacturers of bakery and confectionary products in 2014 — 2016

The return on investment ratio is calculated as the relation of net profit to the sum of own capital and long-term liabilities and demonstrates the return on the equity involved in the commercial activity of own capital and the long-term borrowed funds of an organization.

Unstable indicators of the return on investment ratio, with decreasing tendency (Picture 7) have been observed for three years. (Picture 7).

Picture 7. Change in the average industry values of the return on investment ratio of manufacturers of bakery and confectionary products in 2014 — 2016

Asset turnover ratio is calculated as the relation of sales proceeds to the average value of total assets for a period and characterizes the efficiency of use of all available resources, regardless of the sources of their attraction. The ratio shows how many times a year a complete cycle of production and circulation is made, yielding profit.

This business activity ratio showed a decreasing tendency for three-year period (Picture 8).

Picture 8.Change in the average industry values of the asset turnover ratio of manufacturers of bakery and confectionary products in 2014 — 2016

Production structure

The largest share in the total revenue of TOP-1000 is owned by companies, specializing in the manufacture of chocolate and sugar products (Picture 9).

Picture 9. Distribution of companies by types of output in the total revenue of TOP-1000, %

67% of TOP-1000 companies are registered in the Register of small and medium enterprises of the Federal Tax Service of the RF (Picture 10).

Picture 10. Shares of small and medium enterprises in TOP-1000 companies, %

Main regions of activities

TOP-1000 companies are unequally distributed across the Russian territory and registered in 79 regions (Picture 11).

Picture 11. Distribution of TOP-1000 companies by regions of Russia

Financial position score

An assessment of the financial position of companies in the industry shows that the largest number is in a stable financial position and above the average (Picture 12).

Picture 12. Distribution of TOP-1000 companies by financial position score

Solvency index Globas

Most of TOP-1000 companies have got Superior or High Solvency index Globas, чthat points to their ability to repay their debts in time and fully (Picture 13).

Picture 13. Distribution of TOP-1000 companies by solvency index Globas

Conclusion

Comprehensive assessment of the activity of manufacturers of bakery and confectionary products, taking into account the main indexes, financial indicators and ratios, demonstrates the domination of favorable trends in the industry. In general, relative stability is observed in the industry. However, among disturbing factors are decreasing profitability, investment and business activity.

Federal Law № 86-FZ dated 18.04.2018 amended Article 5 of the Federal Law «On trade secret», eliminating the legal divergence of concepts «salary» and «social payments».

Item 6 of the Article 5 of the Federal Law «On trade secret» stated that the concept of trade secret does not apply to information «on employers’ arrears in salaries and other social payments». It means that the salary was referred to social payments that contradicts the norms of the Labor Code of the RF.

The Article 129 of the Labor Code of the RF defines salary as remuneration for labor in accordance with the qualification of an employee, the complexity, quantity, quality and conditions of the work performed. The same concept includes various compensations and bonuses. Social payments, in their turn, are not related to salary and are not included in the payroll budget.

This Federal Law excluded the word «other» for dissolution of this inconsistency in item 6 of the Article 5 of the Federal Law «On trade secret». Thus, trade secret cannot apply to information about employers’ arrears to employees in salaries and social payments.

For reference
According to the Federal State Statistics Service, arrears in salaries countrywide in the whole were overdue to almost 40 000 workers as of January 1, 2018. In 2018, compared to the previous year, there has been a reduction in the number of employees, to whom there are arrears in salaries (Table 1).