Dairy Product Manufacturing (3115) - 2011
Transcript of Dairy Product Manufacturing (3115) - 2011
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T r e n d s o f Y o u r B u s i n e s s
E x c l u s i v e l y d i s t r i b u t e d b y
Romania, 2011
Please address all comments and enquiries to: [email protected]
Dairy Product Manufacturing
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Dairy Product Manufacturing
Contents Page
1. Macroeconomic Scenario - 4
2. Analysis of Investment Attractiveness - 5
- Attractiveness Indicators - 5
- Driving Forces of Attractiveness - 5
- Risk-Profitability Maps - 7
3. Concentration in the Sector - 9
4. Analysis of Financial Ratios - 10
- Distributions of Financials - 10
- General Indicators - 11
- Profitability Ratios - 14
- Liquidity Ratios - 16
- Financial Cycles - 18
- Financial Leverage Ratios - 19
- Production Factors - 21
- Costs - 24
- Structure of Current Assets - 26
- DuPonts Pyramid - 28
5. Companies from the Sector - 29
- Top Players from the Sector - 29
- Listed Companies from the Sector - 30
- Mergers and Acquisitions - 31
6. Key Concepts - 32
- Definitions of Indices - 32
- Definitions of Selected Concepts - 34
! This report has been compiled to the best of the authors knowledge, using information originating from verified
sources. The authors of the report take no responsibility for the consequences of any decisions and actions taken as a
result of the use of this report. This report refers to the Romanian economy.
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EconTrends for Romania is the unique tool for analyzing various Romanian industries. It contains description of
macroeconomic environment, analysis of investment attractiveness, detailed analysis of revenue as well as in-depth
analysis of a wide scope of financial ratios. The report covers not the full sector but only its major part, since it is build
on the bottom-up aggregated financial data from Creditinfo Romania and CCIR (Chamber of Commerce and Industry).
Profitability of a given industry is evaluated on the basis of average forecasted dynamics of EBIT in two following
years. Every industry has a granted profitability mark that ranges from 1 up to 5, which reflects its profitability versus
other industries. Higher mark indicates higher profitability. Risk of an industry in turn is measured by the standard
deviation of forecasted Profitability Index. Every industry has also an assigned risk mark that ranges from 1 up to 5,
which reflects its risk versus other industries. Higher mark means here lower risk. Each industry is at the end
characterized by the following two parameters its profitability and risk. They are used for evaluation of the short term
investment attractiveness, that reflects preferences of investors seeking to maximize their rates of return and to
minimize the risk they face.
The final Short-Term Investment Attractiveness Ranking of an analyzed industry explains its relative attractiveness
comparing to other sectors. The lower a position within the ranking the higher is attractiveness of an industry. Changes
in this position replicate either changes in profitability or in risk. Additionally like in the case of profitability and risk
measurement the final attractiveness is graded from 1 to 5, where the highest grade means the highest attractiveness.
Lower grade means worseinvestment-weather conditions, so either lower profitability or higher risk. The Short-Term
Investment Attractiveness Ranking is presented according to the structure of the North American Industry
Classification System (NAICS). However the used system of industry classification is not fully compatible with the
Romanian Classification of Activities due to Romanian statistics - specific factors.
The Short-Term Investment Attractiveness Ranking developed for Romania under the EconTrends methodology is
based on the so called Profitability Index, that shows forecasted dynamics of EBIT. It serves as a proxy for dynamics
of dirty cash flows in enterprises from a given industry. Fundamental components of the Profitability Index like net
sales and EBIT margin, are forecasted using econometric models. The behavior over time of all these categories is
illustrated using appropriate pictograms in the Map of Forces.
Analysed sector:
Class Dairy Product Manufacturing
There are no subclasses in analysed
class.
Only the subclasses marked by an arrow are covered by EconTrends reports.
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Dairy Product Manufacturing
Macroeconomic ScenarioPeriod 2009 2010 2011 2012 2013
Nominal GDP Growth 97.4 104.3 110.7 106.5 103.8
Real GDP Growth 93.4 98.3 102.5 100.9 101.8
Inflation (CPI) 105.6 106.1 105.8 103.3 103.3
Inflation (PPI) 101.9 106.3 108.9 106.2 104.5
USD/RON exchange rate 3.05 3.18 3.05 3.47 3.35
Datasource: ISI, EMIS, CEIC
-> expected fall of
GDP nominal growth
in 2013
-> expected slight
fall of GDP real
growth in 2013
-> expected slight
fall of CPI inflation
in 2013
-> expected slight
fall of PPI inflation in
2013
-> expected
weakening of
USD/RON exchange
rate in 2013
0
20
40
60
80
100
120
140
Growth
Period
Nominal GDP Growth
Forecast
98
100
102
104
106
108
110
112
114
Growth
Period
Inflation (CPI)
Fore
cast
90
95
100
105
110
115
120
125
Growth
Period
Inflation (PPI)
Forecast
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Dairy Product Manufacturing
Analysis of Investment Attractiveness
Attractiveness Indicators
Driving Forces of Attractiveness
- Profitability Index - y/y dynamics
- Net Revenue per Company - y/y dynamics
- EBIT Margin - y/y dynamics
Current situation a a aForecasted situation e d d
Map of forces for the sector Net revenue - Y/Y dynamics EBIT margin - Y/Y dynamicsProfitability index - Y/Y
dynamics
"+"
"-"
"o"
Positive dynamics of "driving force"
Negative dynamics of "driving force"
Close to zero dynamics of "driving force"
Fall of dynamics comparing to previous year
Stabilisation of dynamics comparing to previous year
Symbols orientation Rise of dynamics comparing to previous year
Neutral impact on profits dynamics
Symbols sign
Symbol's colour Dynamics of profit
Positive impact on profits dynamics
Negative impact on profits dynamics
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
-10%
-5%
0%
5%
10%
15%
20%
25%
Profitabilityindex-Y/Ydynamics
Netrevenueper
company-Y/Ydynamics
Period
Net revenue per company - Y/Y dynamics
Net revenue per company - Y/Y dynamics Profitability index - Y/Y dynamics
D
Forecast
5 0
4 0
3 0
2 0
1 1
5 1
4 1
3 1
2 1
1 1
ForecastedAttractiven
ess
Pro
fitability
Risk
0
1
2
3
4
5
Forecasted Attractiveness5 0
4 0
3 1
2 1
1 1
5 1
4 1
3 1
2 1
1 1
CurrentAttractivene
ss
Pro
fitability
Risk
0
1
2
3
4
5
Current Attractivenessexpected fall of
attractiveness in the
sector
-> expected fall of
profitability
-> expectedstabilisation of risk
(expected
stabilisation in risk
mark shown on the
chart)
expected rise in
dynamics of net
revenue in 2012
expected rise in
dynamics of net
revenue in 2013
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Dairy Product Manufacturing
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
-20%
-15%
-10%
-5%
0%
5%
Profitabilityindex-Y/Ydy
namics
EBITMargin-Y/Y
dynamics
Period
EBIT Margin - Y/Y dynamics
EBIT Margin - Y/Y dynamics Profitability index - Y/Y dynamics
Forecast
expected rise in
dynamics of EBIT
margin in 2012
expected rise in
dynamics of EBIT
margin in 2013
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Risk-Profitability Maps
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
Profitability
Risk
Risk - Profitability Map (current situation)
All sectors Most efficient sectors
subc lasses belong ing to selected class Selected s ector (Class): Dair y Product Manufacturing
Investors' utility function
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.1
0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1
Profitability
Risk
Risk - Profitability Map (current situation)
Zoom
All sectors Most efficient sectors
subc lasses belong ing to selected class Selected s ector (Class): Dair y Product Manufacturing
Investors' utility function
risk - profitability
map (current
situation)in previous
year the sector was
efficient in sense of
risk minimation and
profitability
maximation
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Dairy Product Manufacturing
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
0.0 0.5 1.0 1.5 2.0 2.5
Profitability
Risk
Risk - Profitability Map (forecasted situation)
All sectors Most efficient sectors
subc lasses belonging to selected class Selected s ector (Class): Dair y Product Manufacturing
Investors' utility function
-0.1
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
0.0 0.0 0.0 0.1 0.1 0.1 0.1
Profitability
Risk
Risk - Profitability Map (forecasted situation)
Zoom
All sectors Most efficient sectors
subc lasses belong ing to selected class Selected s ector (Class): Dair y Product Manufacturing
Investors' utility function
risk - profitability
map (forecasted
situation)
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Dairy Product Manufacturing
Concentration in the Sector
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
C
umulativemarketshare
Cumulative share of companies from lower market share
Distribution of net revenues in the sector (2011)
Gini Coefficient83.95%
Lorenz Curve
Perfect Inequality Line
Perfect Equality Line
Market power
concentration
measured by
Herfindahl-
Hirschman Index
was weak in 2011
Net sales of top fivecompanies in the
sector reached the
market share of
46.27% in 2011
Market share of top companies in the sector
Year 2011
Number of analysed companies 232
The Herfindahl-Hirschman Index 550
Top 1 company 14.15%
Top 2 companies 24.93%
Top 3 companies 34.44%
Top 4 companies 40.70%
Top 5 companies 46.27%
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Dairy Product Manufacturing
Analysis of Financial Ratios
Distributions of Financials
20% 40% 60% 80%
2010 2011 I II III IV
General Indicators
Number of companies 206 232
Y/Y dynamic s of net revenue per company [%] 1.30% -8.48% -17.67% -4.47% 7.39% 23.05%
Y/Y dynamics of total operating cost per company [%] 3.85% -6.86% -16.25% -0.21% 10.39% 23.29%
Y/Y dynamics of operating profit per company [%] -57.92% -100.94% -85.54% -33.31% 1.95% 73.28%
Y/Y dynamics of operating profit per profit-making company [%] 5.23% -25.14% -49.22% -22.85% 7.34% 72.72%
Y/Y dynamic s of gross profit per company [%] -73.72% -199.52% -93.91% -51.78% -0.92% 103.71%
Y/Y dynamics of gross profit per profit-making company [%] 3.32% -24.15% -75.35% -47.29% -4.34% 105.08%
Y/Y dynamics of net profit per company [%] -106.21% 872.46% -95.18% -37.23% 13.67% 114.75%
Y/Y dynamics of net profit per profit-making company [%] 0.31% -19.60% -73.68% -24.05% 14.34% 171.26%
Profitability Ratios
Ope rating Sales M argin [%] 1.72% 0.10% -13.56% 0.99% 3.41% 6.05%
Net Sales Margin [%] -0.11% -1.07% -13.80% 0.08% 0.76% 3.21%
Return on Equity [%] -0.44% -5.42% 0.00% 1.34% 8.06% 24.35%
Return on Ass ets [%] -0.13% -1.39% -9.06% 0.02% 0.47% 3.51%
Effective tax rate [%] 17.49% 13.15% 12.70% 15.96% 18.14% 31.93%
Share of profit-making companies [%] 69.90% 62.07%
Liquidity Ratios
Current ratio [%] 82.27% 68.01% 38.29% 75.17% 116.07% 198.62%
Quick ratio [%] 58.66% 48.09% 13.98% 33.49% 60.82% 125.42%
Super quick ratio [%] 9.32% 8.00% 0.21% 1.36% 4.75% 17.75%
Receivables to liabilities ratio [%] 46.73% 38.36% 10.95% 27.44% 50.05% 108.98%
Financial Cycles
Days of coverage for Cash & Equivalent [days] -42 -69 -147 -33 9 49
Days of coverage for rece ivables [days] 66 65 25 40 58 109
Days of coverage for inventories [days] 33 34 23 39 58 114
Days of coverage for short term liabilities [days] 142 167 56 105 173 358
Financial Leverage Ratios
Debt to Equity ratio [%] 53.69% 53.92% 0.00% 0.00% 35.08% 169.07%
Equity to total assets ratio [%] 30.55% 25.58% -8.78% 13.37% 28.11% 51.12%
Long-term liabilities to total liabilities ratio [%] 16.40% 13.79% 0.00% 5.09% 22.70% 54.20%
Debt ratio [%] 63.51% 68.67% 42.09% 60.06% 74.52% 96.74%
Ope rating profit coverage [years] 4.84 6.78 5.0 11.7 18.4 39.0
Production Factors
Av erage employment per company [person] 29 59 10 18 28 67
Labour productivity [thou. RO N/person] 191.99 289.99 75.79 114.10 147.40 206.52
Labour cost as the s hare in total operating cos ts [%] 9.74% 8.93% 4.90% 8.42% 11.71% 15.26%
Fixed ass ets per employee [thou. RO N/person] 129.24 152.48 39.41 72.36 115.76 184.15
Labour intensity of production [%] 9.57% 8.93% 6.41% 9.01% 12.29% 15.62%
Material & energy intensity of production [%] 47.99% 49.97% 40.44% 61.08% 73.83% 83.79%
Total assets turnover [%] 118.99% 116.48% 24.83% 57.46% 102.56% 161.29%
Fixed assets productivity [%] 196.91% 188.95% 47.07% 104.09% 177.60% 341.82%
Labour cost per employee [thou. RON/person] 17.54 25.99 9.63 11.56 13.61 19.10
Costs
Share of wages in total operating cos ts [%] 7.66% 7.02% 3.65% 6.64% 9.20% 11.91%
Share of soc ial contributions in total operating cos ts [%] 2.08% 1.91% 1.08% 1.83% 2.49% 3.23%
Share of external servic es in total operating cos t [%] 16.19% 15.44% 3.98% 5.97% 8.51% 13.05%
Share of material & energy used in total operating cos ts [%] 48.83% 49.96% 31.06% 55.52% 69.84% 82.32%
Share of taxes & fees in total operating cos ts [%] 0.60% 0.51% 0.19% 0.38% 0.58% 1.05%
D I S T R I B U T I O N O F P A R A M E T E R S
(The distribution of financial indicators in the sector)
Average value for the
sector in
Source: ISI, EMI S, Creditinfo Romania, CCIR
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Dairy Product Manufacturing
General Indicators
Number of companies
Period 2008 2009 2010 2011
Value 200 194 206 232
Y/Y increase 0 -6 12 26
Net revenue per company [thou RON]
Period 2008 2009 2010 2011
Value [thou RON] 16 605.50 16 522.25 16 736.25 15 316.90
Y/Y dynamics [%] 19.84% -0.50% 1.30% -8.48%
Total operating cost per company [thou RON]
Period 2008 2009 2010 2011
Value [thou RON] 15 731.10 15 837.70 16 448.20 15 319.61
Y/Y dynamics [%] 21.09% 0.68% 3.85% -6.86%
rise of number of
companies covered
by database in 2011
comparing to the
value in 2010
fall of Y/Y dynamics
of net revenue per
company in 2011
comparing to the
value in 2010
fall of Y/Y dynamics
of total operating
cost per company in
2011 comparing to
the value in 2010
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
[thouRON]
Net revenue & total operating costs per company
Net revenue per company [thou RON] Total operating cost per company [thou RON]
Operating profit per company [thou RON]
Period 2008 2009 2010 2011
Value [thou RON] 874.40 684.55 288.04 -2.71
Y/Y dynamics [%] 1.09% -21.71% -57.92% -100.94%
-120%
-100%
-80%
-60%
-40%
-20%
0%
20%
-100
0
100
200
300
400
500
600
700
800
900
1 000
Y/Ydynamicsofoperatingprofitpercompany[%]
[thouRON]
Period
Operating profit per company [thou RON]
Operating profit per company [thou RON] Y/Y dynamics of operating profit per company [%]
fall of Y/Y dynamics
of operating profit
per company in
2011 comparing to
the value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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Dairy Product Manufacturing
Operating profit per profit-making company [thou RON]
Period 2008 2009 2010 2011
Value [thou RON] 1 252.65 1 238.59 1 303.42 975.73
Y/Y dynamics [%] 13.83% -1.12% 5.23% -25.14%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
0
200
400
600
800
1 000
1 200
1 400
Y/Ydynamicsof
operatingprofitperprofit-making
company[%]
[thouRON]
Period
Operating profit per profit-making company [thou RON]
Operating profit per profit-making company [thou RON] Y/Y dynamics of operating profit per profit-making company [%]
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
-200
0
200
400
600
800
1 000
1 200
1 400
Y/Ydynamicsofgrossprofitpercompany[%]
[t
houRON]
Period
Gross profit per company [thou RON]
Gross profit per company [thou RON] Y/Y dynamics of gross profit per company [%]
Gross profit per company [thou RON]
Period 2008 2009 2010 2011
Value [thou RON] 655.74 439.33 115.45 -114.90
Y/Y dynamics [%] -42.79% -33.00% -73.72% -199.52%
fall of Y/Y dynamics
of operating profit
per company in
2011 comparing to
the value in 2010
fall of Y/Y dynamics
of operating profit
per profit-making
company in 2011
comparing to thevalue in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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Gross profit per profit-making company [thou RON]
Period 2008 2009 2010 2011
Value [thou RON] 1 059.02 1 040.09 1 074.59 815.04
Y/Y dynamics [%] -25.39% -1.79% 3.32% -24.15%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
0
200
400
600
800
1 000
1 200
1 400
1 600
Y/Ydynamicsofgrossprofitperprofit-making
company[%]
[thouRON]
Period
Gross profit per profit-making company [thou RON]
Gross profit per profit-making company [thou RON] Y/Y dynamics of gross profit per profit-making company [%]
-200%
0%
200%
400%
600%
800%
1000%
-400
-200
0
200
400
600
800
1 000
1 200
Y/Ydynamicsofnetprofitpercompany[%]
[th
ouRON]
Period
Net profit per company [thou RON]
Net profit per company [thou RON] Y/Y dynamics of net profit per company [%]
Net profit per company [thou RON]
Period 2008 2009 2010 2011
Value [thou RON] 527.75 301.68 -18.75 -182.32
Y/Y dynamics [%] -47.98% -42.84% -106.21% 872.46%
fall of Y/Y dynamics
of gross profit per
company in 2011
comparing to the
value in 2010
fall of Y/Y dynamics
of gross profit per
profit-making
company in 2011
comparing to the
value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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Net profit per profit-making company [thou RON]
Period 2008 2009 2010 2011
Value [thou RON] 900.57 883.84 886.59 712.80
Y/Y dynamics [%] -28.77% -1.86% 0.31% -19.60%
-40%
-20%
0%
20%
40%
60%
80%
0
200
400
600
800
1 000
1 200
1 400
Y/Ydynamicsofnetprofitperprofit-making
company[%]
[thouRON]
Period
Net profit per profit-making company [thou RON]
Net profit per profit-making company [thou RON] Y/Y dynamics of net profit per profit-making company [%]
Profitability Ratios
Share of profit-making companies [%]
Period 2008 2009 2010 2011
Value [%] 77.00% 67.53% 69.90% 62.07%Y/Y increase [%] -8.00% -9.47% 2.38% -7.83%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Period
Share of profit-making companies [%]
Share of profit-making companies [%]
rise of Y/Y dynamics
of net profit per
company in 2011
comparing to the
value in 2010
fall of share of profit-
making companies
in 2011 comparingto the value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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Dairy Product Manufacturing
Operating Sales Margin [%]
Period 2008 2009 2010 2011
Value [%] 5.27% 4.18% 1.72% 0.10%
Y/Y increase [%] -0.90% -1.09% -2.46% -1.62%
0%
1%
2%
3%
4%
5%
6%
7%
Period
Operating Sales Margin [%]
Net Sales Margin [%]
Period 2008 2009 2010 2011
Value [%] 3.18% 1.99% -0.11% -1.07%
Y/Y increase [%] -4.06% -1.20% -2.10% -0.96%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
Period
Net Sales Margin [%]
Return on Equity [%]
Period 2008 2009 2010 2011
Value [%] 11.62% 5.99% -0.44% -5.42%
Y/Y increase [%] -9.89% -5.63% -6.43% -4.98%
-10%
-5%
0%
5%
10%
15%
20%
25%
Period
Return on Equity [%]
fall of operating
sales margin in 2011
comparing to the
value in 2010
fall of net sales
margin in 2011
comparing to the
value in 2010
fall of return on
equity in 2011comparing to the
value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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Dairy Product Manufacturing
Return on Assets [%]
Period 2008 2009 2010 2011
Value [%] 4.42% 2.42% -0.13% -1.39%
Y/Y increase [%] -4.95% -2.01% -2.55% -1.25%
-2%
0%
2%
4%
6%
8%
10%
Period
Return on Assets [%]
Effective tax rate [%]
Period 2008 2009 2010 2011
Value [%] 15.39% 16.30% 17.49% 13.15%
Y/Y increase [%] 4.47% 0.91% 1.20% -4.35%
Liquidity Ratios
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Period
Effective tax rate [%]
Current ratio [%]Period 2008 2009 2010 2011
Value [%] 109.14% 95.10% 82.27% 68.01%
Y/Y increase [%] -26.15% -14.04% -12.83% -14.26%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Period
Current ratio [%]
fall of return on
assets in 2011
comparing to the
value in 2010
fall of effective tax
rate in 2011
comparing to the
value in 2010
fall of current ratio
in 2011 comparing
to the value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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Dairy Product Manufacturing
Quick ratio [%]
Period 2008 2009 2010 2011
Value [%] 74.78% 62.29% 58.66% 48.09%
Y/Y increase [%] -23.54% -12.49% -3.63% -10.57%
Super quick ratio [%]Period 2008 2009 2010 2011
Value [%] 11.15% 10.21% 9.32% 8.00%
Y/Y increase [%] -5.94% -0.94% -0.89% -1.32%
Receivables to liabilities ratio [%]
Period 2008 2009 2010 2011
Value [%] 62.71% 50.33% 46.73% 38.36%Y/Y increase [%] -17.08% -12.38% -3.60% -8.37%
0%
20%
40%
60%
80%
100%
120%
Period
Quick ratio [%]
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Period
Super quick ratio [%]
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Period
Receivables to liabilities ratio [%]
fall of quick ratio in
2011 comparing to
the value in 2010
fall of super quick
ratio in 2011
comparing to the
value in 2010
fall of receivables to
liabilities ratio in
2011 comparing tothe value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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Dairy Product Manufacturing
Financial Cycles
Days of coverage for Cash & Equivalent [days]
Period 2008 2009 2010 2011
Value [days] -3 -17 -42 -69
Y/Y increase [days] -18 -14 -25 -27
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
Period
Days of coverage for Cash & Equivalent [days]
Days of coverage for receivables [days]
Period 2008 2009 2010 2011
Value [days] 59 52 66 65
Y/Y increase [days] -13 -7 14 -2
0
10
20
30
40
50
60
70
80
Period
Days of coverage for receivables [days]
Days of coverage for inventories [days]
Period 2008 2009 2010 2011
Value [days] 32 34 33 34
Y/Y increase [days] -1 2 -1 0
32
32
33
33
34
34
35
Period
Days of coverage for inventories [days]
fall of days of
coverage for cash &
equivalent in 2011
comparing to the
value in 2010
fall of days of
coverage for
receivables in 2011
comparing to the
value in 2010
rise of days ofcoverage for
inventories in 2011
comparing to the
value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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8/12/2019 Dairy Product Manufacturing (3115) - 2011
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Dairy Product Manufacturing
Days of coverage for short term liabilities [days]
Period 2008 2009 2010 2011
Value [days] 94 104 142 167
Y/Y increase [days] 5 9 38 25
0
20
40
60
80
100
120
140
160
180
Period
Days of coverage for short term liabilities [days]
Financial Leverage Ratios
Debt to Equity ratio [%]
Period 2008 2009 2010 2011
Value [%] 47.85% 36.05% 53.69% 53.92%
Y/Y increase [%] 7.77% -11.80% 17.63% 0.23%
0%
10%
20%
30%
40%
50%
60%
Period
Debt to Equity ratio [%]
Equity to total assets ratio [%]Period 2008 2009 2010 2011
Value [%] 38.06% 40.31% 30.55% 25.58%
Y/Y increase [%] -5.49% 2.25% -9.76% -4.96%
0%
5%
10%
15%20%
25%
30%
35%
40%
45%
50%
Period
Equity to total assets ratio [%]
rise of days of
coverage for short
term liabilities in
2011 comparing to
the value in 2010
rise of debt to equity
ratio in 2011
comparing to the
value in 2010
fall of equity to total
assets ratio in 2011
comparing to the
value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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8/12/2019 Dairy Product Manufacturing (3115) - 2011
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Dairy Product Manufacturing
Long-term liabilities to total liabilities ratio [%]
Period 2008 2009 2010 2011
Value [%] 18.21% 14.53% 16.40% 13.79%
Y/Y increase [%] 0.76% -3.68% 1.87% -2.61%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Period
Long-term liabilities to total liabilities ratio [%]
Debt ratio [%]Period 2008 2009 2010 2011
Value [%] 54.71% 52.91% 63.51% 68.67%
Y/Y increase [%] 5.27% -1.81% 10.60% 5.16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Period
Debt ratio [%]
Operating profit coverage [years]
Period 2008 2009 2010 2011
Value [year] 5.08 5.42 4.84 6.78Y/Y increase [year] 0.27 0.35 -0.58 1.94
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Period
Operating profit coverage [years]
fall of long-term
liabilities to total
liabilities ratio in
2011 comparing to
the value in 2010
rise of debt ratio in
2011 comparing to
the value in 2010
rise of operating
profit coverage in
2011 comparing tothe value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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8/12/2019 Dairy Product Manufacturing (3115) - 2011
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Dairy Product Manufacturing
Production Factors
Average employment per company [person]
Period 2008 2009 2010 2011
Value [person] 71 72 29 59
Y/Y dynamics [%] -0.03% 0.57% -58.91% 101.74%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
0
10
20
30
40
50
60
70
80
Y/Yd
ynamicsofaverageemployment
percompany[%]
[person]
Average employment per company [person]
Average employment per company [person] Y/Y dynamics of average employment per company [%]
Labour productivity [thou. RON/person]
Period 2008 2009 2010 2011
Value [thou RON/person] 239.12 244.17 191.99 289.99
Y/Y dynamics [%] 19.93% 2.11% -21.37% 51.04%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
0
50
100
150
200
250
300
350
Y/Ydynamicsoflabourproductivi
ty
[%]
[thouRON/person]
Labour productivity [thou. RON/person]
Labour productivi ty [thou. RON/person] Y/Y dynamics of labour product ivity [%]
Labour cost as the share in total operating costs [%]
Period 2008 2009 2010 2011
Value [%] 9.50% 10.11% 9.74% 8.93%
Y/Y increase [%] -0.05% 0.61% -0.36% -0.81%
8%
8%
9%
9%
9%
9%
9%
10%
10%
10%
10%
Labour cost as the share in total operating costs [%]
rise of average
employment per
company in 2011
comparing to the
value in 2010
rise of labour
productivity in 2011
comparing to the
value in 2010
fall of labour cost as
the share in total
operating costs in
2011 comparing to
the value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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8/12/2019 Dairy Product Manufacturing (3115) - 2011
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Dairy Product Manufacturing
Fixed assets per employee [thou. RON/person]
Period 2008 2009 2010 2011
Value [thou RON/person] 101.26 113.32 129.24 152.48
Y/Y dynamics [%] 16.45% 11.92% 14.04% 17.98%
0%
5%
10%
15%
20%
25%
30%
35%
0
20
40
60
80
100
120
140
160
180
Y/Ydynamicsoffixedassets
per
employee[%]
[thouRON/person]
Fixed assets per employee [thou. RON/person]
Fixed assets per employee [thou. RON/person] Y/Y dynamics of fixed assets per employee [%]
Labour intensity of production [%]
Period 2008 2009 2010 2011
Value [%] 9.00% 9.69% 9.57% 8.93%
Y/Y increase [%] 0.05% 0.69% -0.11% -0.64%
8%
9%
9%
9%
9%
9%
10%
10%
Period
Labour intensity of production [%]
Material & energy intensity of production [%]
Period 2008 2009 2010 2011
Value [%] 58.27% 47.87% 47.99% 49.97%
Y/Y increase [%] -0.71% -10.39% 0.12% 1.98%
0%
10%
20%
30%
40%
50%
60%
70%
Period
Material & energy intensity of production [%]
rise of fixed assets
per employee in
2011 comparing to
the value in 2010
fall of labour
intensity of
production in 2011
comparing to the
value in 2010
rise of material &
energy intensity ofproduction in 2011
comparing to the
value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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8/12/2019 Dairy Product Manufacturing (3115) - 2011
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Dairy Product Manufacturing
Total assets turnover [%]
Period 2008 2009 2010 2011
Value [%] 139.20% 132.30% 118.99% 116.48%
Y/Y increase [%] 11.22% -6.89% -13.32% -2.51%
105%
110%
115%
120%
125%
130%
135%
140%
145%
Period
Total assets turnover [%]
Fixed assets productivity [%]Period 2008 2009 2010 2011
Value [%] 236.14% 212.34% 196.91% 188.95%
Y/Y increase [%] 6.72% -23.80% -15.43% -7.96%
0%
50%
100%
150%
200%
250%
Period
Fixed assets productivity [%]
Labour cost per employee [thou. RON/person]
Period 2008 2009 2010 2011
Value [thou RON/person] 21.53 23.67 17.54 25.99Y/Y dynamics [%] 20.53% 9.96% -25.91% 48.16%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
0
5
10
15
20
25
30
Y/Ydynami
csoflabourcostper
employee[%]
[thouRON/person]
Labour cost per employee [thou. RON/person]
Labour cost per employee [thou. RON/person] Y/Y dynamics of labour cost per employee [%]
fall of total assets
turnover in 2011
comparing to the
value in 2010
fall of fixed assets
productivity in 2011
comparing to the
value in 2010
rise of labour cost
per employee in
2011 comparing to
the value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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8/12/2019 Dairy Product Manufacturing (3115) - 2011
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Dairy Product Manufacturing
Costs
Share of wages in total operating costs [%]
Period 2008 2009 2010 2011
Value [%] 7.50% 7.96% 7.66% 7.02%
Y/Y increase [%] 0.05% 0.46% -0.29% -0.64%
6%
7%
7%
7%
7%
7%
8%
8%
8%
8%
Period
Share of wages in total operating costs [%]
Period 2008 2009 2010 2011
Value [%] 2.00% 2.15% 2.08% 1.91%
Y/Y increase [%] -0.10% 0.15% -0.07% -0.17%
Share of social contributions in total operating costs [%]
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
Period
Share of social contributions in total operating costs [%]
Period 2008 2009 2010 2011Value [%] 14.90% 16.10% 16.19% 15.44%
Y/Y increase [%] 0.86% 1.21% 0.09% -0.75%
Share of external services in total operating cost [%]
13%
13%
14%
14%
15%
15%
16%
16%
17%
Period
Share of external services in total operating cost [%]
fall of share of
wages in total
operating costs in
2011 comparing to
the value in 2010
fall of share of social
contributions in total
operating costs in
2011 comparing to
the value in 2010
fall of share of
external services in
total operating cost
in 2011 comparing
to the value in 2010
Source: ISI, EMI S, Creditinfo Romania, CCIR
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8/12/2019 Dairy Product Manufacturing (3115) - 2011
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Dairy Product Manufacturing
Period 2008 2009 2010 2011
Value [%] 60.70% 49.94% 48.83% 49.96%
Y/Y increase [%] -1.63% -10.75% -1.11% 1.13%
Share of material & energy used in total operating costs [%]
0%
10%
20%
30%
40%
50%
60%
70%
Period
Share of material & energy used in total operating costs [%]
Period 2008 2009 2010 2011
Value [%] 0.56% 0.56% 0.60% 0.51%
Y/Y increase [%] -0.05% 0.01% 0.04% -0.09%
Share of taxes & fees in total operating costs [%]
0%
0%
1%
1%
1%
1%
1%
1%
1%
Period
Share of taxes & fees in total operating costs [%]
rise of share of
material & energy
used in total
operating costs in
2011 comparing to
the value in 2010
fall of share of taxes
& fees in total
operating costs in
2011 comparing to
the value in 2010
material and energy
costs dominate inthe cost structure
Source: ISI, EMI S, Creditinfo Romania, CCIR
Costs structure [%]
Wages [%] 7.96% 7.66% 7.02%
Social contributions [%] 2.15% 2.08% 1.91%
Cost of external services [%] 16.10% 16.19% 15.44%
Material and energy costs [%] 49.94% 48.83% 49.96%
Taxes and fees [%] 0.56% 0.60% 0.51%
O ther costs [%] 23.28% 24.63% 25.16%
Period 2009 2010 2011
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Dairy Product Manufacturing
0%
20%
40%
60%
80%
100%
2009 2010 2011
Period
Costs structure [%]
Wages [%] Social contributions [%] Cost of external services [%]
Material and energy costs [%] Taxes and fees [%] Other costs [%]
7.0%1.9%
15.4%
50.0%
0.5%
25.2%
Costs structure [%] (2011)
Wages [%] Social contributions [%] Cost of external services [%]
Material and energy costs [%] Taxes and fees [%] Other costs [%]
Structure of Current Assets
Source: ISI, EMI S, Creditinfo Romania, CCIR
short-term
receivables
dominate in the
current assets
structure
Current assets structure [%]
Inventories [%] 34.50% 28.70% 29.29%
Short-term receivables [%] 52.92% 56.80% 56.40%
Cash and equivalent [%] 10.74% 11.33% 11.77%
O ther current assets [%] 1.84% 3.17% 2.54%
Period 2009 2010 2011
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Dairy Product Manufacturing
0%
20%
40%
60%
80%
100%
2009 2010 2011
Period
Current assets structure [%]
Inventories [%] Short-term receivables [%] Cash and equivalent [%] Other current assets [%]
29.3%
56.4%
11.8%
2.5%
Current assets structure [%] (2011)
Inventories [%] Short-term receivables [%] Cash and equivalent [%] Other current assets [%]
Source: ISI, EMI S, Creditinfo Romania, CCIR
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8/12/2019 Dairy Product Manufacturing (3115) - 2011
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DairyProductManufactu
ring
DuPontsPyra
mid
Equity
per
company
2011
3364
2010
4297
2009
5033
2008
4540
Leverage
2011
3.91
Assets
per
company
2011
13150
2010
3.2
7
2010
14066
2009
2.4
8
2009
12488
ROE
2011
-5.4%
2008
2.6
3
TAT
2011
1.16
2008
11930
2010
-0.4
%
2010
1.1
9
2009
6.0%
2009
1.3
2
2008
11.6
%
ROA
2011
-1.4%
2008
1.3
9
Net
revenue
per
company
2011
15317
2010
-0.1
%
2010
16736
2009
2.4
%
2009
16522
2008
4.4
%
ROS
20
11
-1.1%
2008
166
05
2010
-0.1
%
2009
2.0
%
2008
3.2
%Net
profit
per
company
2011
-182
2010
-19
2009
302
2008
528
Returnon
equity
ROE=ROA*leverage
Assetsturnover
TAT=Netrev
enueper
company/Assetsper
company
Returnonassets
ROA=ROS*TAT
Netrevenuepercompany(*)
[thouRON]
(*)Netprofitpercompanyornetrevenuepercompanyfrom
agivenyear
(**)Valueofassetspercompanyorequitypercompanyfrom
theendof
year
Equity
percompany(**)
[thouRON]
leverage=Assetsper
company/Equityper
company
Assetspercompany(**)
[thouRON]
Returnonnetsales
ROS=Netprofitpercompany
/Netrevenuepercompany
Netprofitpercompany(*)
[thouRON]
*
*
/
/
/
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DairyProductManufactu
ring
CompaniesfromtheSector
TopPlayersfrom
theSector
improveof
taxshield
++ + o +
+ + o +
leverage
increase
+ o o + + ++ o +
+++ + +
cost
cutting
+ + + o + o ++
++
++ o +
increas
e
ofrevenue
o + + + o o + ++ ++ ++ + +++o
18.15%
15.30%
12.31%
19.82%
14.09%
3.13%
13.80%
ROS
3.26%
1.78%
1.71%
4.15%
4.08%
10.44%
0.07%
-1.15%
-3.09%
5.30%
2.65%
TAT
2.88
2.01
1.56
2.05
2.28
2.18
1.70
0.28
0.98
1.18
1.71
ROA
9.39%
3.57%
2.65%
8.50%
9.28%
22.80%
0.11%
-0.32%
-3.04%
6.24%
5.92%
leverage
2.16
2.93
2.42
2.11
1.87
1.24
4.67
1.47
1.43
1.79
2.21
ROE
20.27%
10.44%
6.41%
17.89%
17.33%
28.30%
0.52%
-0.47%
-4.34%
11.15%
10.75%
Employm
ent
608
617
631
348
365
158
316
120
371
545
408
Asse
ts
[mnR
ON]
174.61
190.59
217.38
108.57
87.00
58.49
73.14
350.79
92.00
69.24
142.18
Equity
[mnRON]
80.88
65.13
89.98
51.56
46.59
47.11
15.64
239.27
64.44
38.74
73.93
Y/Y
dynamics
ofnetprofit
-45.81%
186.37%
894.03%
-74.04%
-26.15%
45.15%
104.19%
-255.29%
1.80%
-11.75%
81.85%
NetProfit
[mnRON]
16.40
6.80
5.77
9.23
8.08
13.33
0.08
-1.12
-2.80
4.32
6.01
Y/Y
dynam
ics
ofn
et
revenues
5.62
%
50.04%
29.47%
4.33
%
2.72
%
87.00%
3.20
%
31.05%
15.85%
9.56
%
23.89%
Net
Revenue
[mnRON]
503.00
382.72
338.25
222.37
197.95
127.75
124.34
97.11
90.43
81.53
216.55
Market
share
14.15%
10.77%
9.52%
6.26%
5.57%
3.60%
3.50%
2.73%
2.54%
2.29%
6.09%
Datafrom2011
Shareofnetrevenue
sof
top10companiesinthe
sector
60.94%
DANONE
FrieslandCampinaRomania
AlbalactSA
Na
polact
HochlandRo
mania
Simult
anSRL
IndustrializareaLaptelui
Mures
OLYMPUSDAIRYIND
USTRY
Co
valact
BettyIce
Average
Highpotential
Mediumpotential
Lowpotential
Mainindicators
Thedatafor2010and
2011arefromCreditinfoRomaniaandC
CIR.Hence,thequalityofpresented
dataisstrictlylimited
bythequalityofdatainCreditinfoRomania&CCIR.
*)PubliccompaniesrepresentsonlythesePLCthatarelistedon1stand2ndtierofBVBorRasdaq
Public
com-
pany
*)
Strategicconclusions
Potentialfor:
Effective
taxrate
DuPontpyramid
InduPontPyramidstockv
ariablesarenot
averagedovertimeforcalculationpurposes
duetolackofthesedata
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DairyProductManufactu
ring
Listedcompaniesfrom
thesector(BVB/Rasdaq;1stand2ndtier)
U
L
U
L
P/BV
P/E
%P
(y/y)
P
++++++
15.30%
67.28%
14.94%
29.99%
52.70%
12.83%
32.17%
ROS
1.71%
-7.89%
0.36%
2.25%
-37.82%
0.40%
0.13%
3.44%
-48.94%
-54.89%
-14.13%
TAT
1.556
1.784
1.181
2.367
0.375
1.619
1.078
1.535
0.459
0.098
1.205
ROA
2.65%
-14.08%
0.43%
5.33%
-14.20%
0.64%
0.14%
5.28%
-22.46%
-5.36%
-4.16%
leverage
2.416
1.583
2.927
1.513
5.666
1.961
9.812
1.496
-0.385
1.329
2.832
ROE
6.41%
-22.29%
1.25%
8.06%
-80.44%
1.26%
1.34%
7.89%
8.64%
-7.12%
-7.50%
Boo
k
Va
lue
[mn
RON]
89.98
11.52
8.02
5.40
8.55
4.98
1.49
4.49
-37.46
25.36
12.23
Ne
tPro
fit
[mn
RO
N]
5.77
-2.57
0.10
0.44
-6.88
0.06
0.02
0.35
-3.24
-1.81
-0.78
Ne
t
Revenue
[mn
RON]
338.25
32.55
27.71
19.33
18.19
15.83
15.71
10.30
6.62
3.29
48.78
Marke
t
share
9.81%
0.94%
0.80%
0.56%
0.53%
0.46%
0.46%
0.30%
0.19%
0.10%
1.41%
RASDAQ
RASDAQ
RASDAQ
RASDAQ
RASDAQ
RASDAQ
RASDAQ
RASDAQ
RASDAQ
RASDAQ
Datafrom2011
AlbalactSA
LactateNaturaS.A.
Targoviste
Ilvas
BUC
OVINA
Pro
dlacta
LactaSA
Lactag
Vr
anlact
IndustrializareaLaptelui
Ha
rghita
L
actido
Av
erage
Liqu
idity
Mainindicators
-highliquidity
-averageliquidity
-lowliquidity
Market
FinancialIndicators(2011)
Effec
tive
taxra
te
DuPont'spyram
id
MarketIndicators(31/12/
2012)
Required
returnrate
Market
multipliers
Beta
()
Company
'
smarke
t
va
lue
[mn
RON]
Price
Averag
e
daily
vo
lume-
las
tye
ar
[thou
RON]
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DairyProductManufactu
ring
MergersandAcquisitions
Takingover
company
AlboraSRL
Debrocons,
Portavon,
RevanCom
Sole-Mizo
LactalisGroup*
TopBrands
Distribution
MeggleRomania
Unilever
AlbalactAlbaIulia
SigmaBleyzer
LactalisGroup
Takenover
company
TRD-TnuvaRoma
nia
Dairies
LactateNatura
Prodlacta
AlbalactAlbaIulia
*
MasterHouseGrup
StarsCoOOD
"Napoca"ice-cream
brandinRomania
Raraul
PRIMULACTSA,
LACTATEHARGHIT
A
SA
DORNASA,
DORNA
LACTATESA,
Dorn
a
Hellas
Tran
sactiondate
D
ec-19,2
012
O
ct-15,2
010
F
eb-25,2
010
J
an-05,2
010
S
ep-11,2
009
S
ep-09,2
009
F
eb-24,2
009
O
ct-16,2
008
A
pr-23,2
008
A
pr-21,2
008
Buyer'sName
LactalisGroup
SigmaBleyzer
SigmaBleyzer
Debrocons,
Portavon,
R
AlbalactAlbaIulia
TopBrandsDistribution
Parmalat
AlboraSRL
Seller'sName
JeanValvis
privateinvestor-Ioan
Balan
SIFOlteniaSA
EuropeanBankfor
Reconstructionand
Development(EBRD)
N/A
Target
Company
DORNASA
,DORNA
LACTATESA,
Dorna
Hellas
PRIMULAC
TSA,
LACTATEHARGHITA
SA
Covalact
LactateNa
tura
Raraul
MasterHouseGrup
ParmalatRomania
TRD-Tnu
vaRomania
Dairies
Transactiondate
Apr-21,2
008
Apr-23,2
008
Aug-07,2
007
Oct-15,2
010
Oct-16,2
008
Sep-11,2
009
Apr-05,2
007
Dec-19,2
012
Valueofadeal
[mnUSD]
Statusofadeal
124.7
1
15.9
4
9.0
5
(completed)
4.9
8
4.7
9
2.9
2
2.9
1
(completed)
1.7
3
Last
mergers
Thela
stmergersrefertothetransactions
affectinganalysedsector.
ThedatasourceisISIDealwatch
Thelargestbuy/
selloffers
Thelargestbuy/sell
offersrefertothetransactionsaffectinganalysedsector.ThedatasourceisISIDealwatch
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Dairy Product Manufacturing
Key ConceptsDefinitions of Indices
Number of companies Number of reporting companies V
Net revenue per company [mn RON]Net revenue
-----------------------------------------
Number of companies
V
---
V
Total operating cost per company [mn RON]
(including depreciation and amortization)
Total operating costs---------------------------------------
Number of companies
V---
V
Operating profit (EBIT) per company [mn RON]Operating profit - Operating loss
---------------------------------------
Number of companies
V
---
V
Operating profit (EBIT) per profit-making company [mn RON]Operating profit
---------------------------------------------
Number of profit-making companies
V
---
V
Gross profit per company [mn RON]Gross profit - Gross loss
---------------------------------------
Number of companies
V
---
V
Gross profit per profit-making company [mn RON]Gross profit
---------------------------------------------
Number of profit-making companies
V
---
V
Net profit per company [mn RON]Net profit - Net loss
---------------------------------------
Number of companies
V
---
V
Net profit per profit-making company [mn RON]Net profit
---------------------------------------------
Number of profit-making companies
V
---
V
Operating Sales Margin [%]Operating profit - Operating loss
-------------------------------------
Net revenue
V
---
V
Net Sales Margin [%]Net profit - Net loss
------------------------------------
Net revenue
V
---
V
Return on Equity [%]Net profit - Net loss
------------------------------------
Equity
V
---
V
Return on Assets [%]Net profit - Net loss
------------------------------------
Total assets
V
---
V
Effective tax rate [%]Gross profit - (Net profit - Net loss)
-------------------------------------------
Gross profit
V
---
V
Share of profit-making companies [%]Number of profit making companies
---------------------------------------------
Number of companies
V
-----
V
Current ratio [%]Current assets
------------------------
Short-term liabilities
V
---
V
Quick ratio [%]Current assets - Inventory
-------------------------------
Short-term liabilities
V
---
V
Super quick ratio [%]Cash & Equivalent
------------------------------------
Short-term liabilities
V
---
V
Receivables to liabilities ratio [%]Receivables
------------------------
Short-term liabilities
V
---
V
Days of coverage for Cash & Equivalent [days](Receivables + Inventories - Short term liabilities) * 360
------------------------------------------------------------------
Net revenue of goods and services
V
---
V
Days of coverage for receivables [days]Receivables * 360
------------------------------------
Net revenue of goods and services
V
---
V
Days of coverage for inventories [days]Inventories * 360
--------------------------------------
Net revenue of goods and services
V
---
V
Days of c overage for short term liabilities [days]Short term liabilities * 360
--------------------------------------
Net revenue of goods and services
V
---
V
Debt to Equity ratio [%]Long-term liabilities
-----------------------
Equity
V
---
V
Equity to total assets ratio [%]
Equity
--------------Total assets
V
---V
Long-term liabilities to total liabilities ratio [%]Long-term liabilities
-----------------------
Total assets
V
---
V
Debt ratio [%]Total liabilities
-----------------
Total assets
V
---
V
Operating profit coverage [years]Total liabilities
----------------------------------------
Operating profit - Operating loss
V
-----
V
V - Value for a given year
Financialcycles
Definition of index
Generalindices
P
rofitabilityratios
Liquidityratios
Financialleverage
ratios
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Dairy Product Manufacturing
Average employment per company [person]Number of employees
--------------------------
Number of companies
V
---
V
Labour productivity [thou. RON/person]Net revenue
---------------
Employment
V
---
V
Labour cost as the share in total operating costs [%]Wages + Social insurance & other contributions to employees
----------------------------------------------------------------------
Total operating costs
V
---
V
Fixed assets per employee [thou. RON/person]
Fixed assets
------------------Employment
V
---V
Labour intensity of production [%]Wages + Social insurance & other contributions to employees
----------------------------------------------------------------------
Net revenue
V
---
V
Material & energy intensity of production [%]Material & energy costs
----------------------------
Net revenue
V
---
V
Total assets turnover [%]Net revenue
------------------
Total assets
V
---
V
Fixed assets productivity [%]Net revenue
------------------
Fixed assets
V
---
V
Labour cost per employee [thou. RON/person]Wages + Social insurance & other contributions to employees
----------------------------------------------------------------------
Employment
V
-----
V
Share of wages in total operating costs [%]Wages
-------------------------
Total operating costs
V---
V
Share of soc ial contributions in total operating costs [%]Social insurance and other contributions to employees
--------------------------------------------------------------
Total operating costs
V
---
V
Share of external services in total operating cost [%]External services
-------------------------
Total operating costs
V
---
V
Share of material & energy used in total operating costs [%]Material & energy costs
-----------------------------
Total operating costs
V
---
V
Share of taxes & fees in total operating costs [%]Taxes & fees
-------------------------
Total operating costs
V
---
V
Costs
V - Value for a given year
Definition of index
Productionfactors
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Dairy Product Manufacturing
Definitions of Selected Concepts
EconTrends for Romania are based to large extent on the structure of the North American Industry
Classification System (NAICS). Analyses made for respective industry divisions and groups are
consistent with this classification. However the used system of industry classification is not fully
compatible with the Romanian Classification of Activities due to Romanian statistics - specific factors.
Moreover the reports are based on the bottom-up aggregation of individual companies financial data
from the Creditinfo Romania and CCIR (Chamber of Commerce and Industry), which provides the
financials not for all, but for all major companies from the sector. Hence the report covers not the full
sector but only its major part.
Forecasting models used in EconTrends have a hierarchical structure. The first layer consists of
models that transmit behavior of macroeconomic variables like nominal GDP growth, increases in prices
to the behaviors of financial parameters like net sales per company and EBIT margin in all analyzed
economic divisions. EBIT margin should be understood as earnings before interest and taxes. The next
layer of models translates the behavior of the above parameters in economic divisions into the groups
within them, than into classess within groups and subclassess within classess. The econometric
models that are used in respective layers have a linear structure and belong to a well known group of
regression models.
Risk-profitability maps show the location of sectors depending on the value of profitability and risk
they achieve. Sectors singled out by being encircled by a red ring are most useful efficientfor
investors, due to the relatively highest return at the lowest variability of profit (relatively high value of
the Sharps index). On the basis of the coordinate values ofefficient sectors, the preferences of
investors on the market are shown by a grey dotted line visible on the graphs this is a level line of
the linear function of utility for investors (Investors Utility Function). The level line shows preferences
of the majority of investors with regard to achieved profitability at a given risk. Sectors, which are
placed above the linear function of usefulness are preferred by investors due to the possibility of
achieving a high profitability, at a particular level of risk. Sectors lying below the level line are not as
attractive for investors, due to the relatively high variability in profit as against their profitability.
The forces map shows decompositions of the profitability index into particular driving forces. The idea
of the strengths map is to show the effect of particular variables on the dynamics of profit both in
current and forecasted situation.
Several concentration measures are used to examine the degree of the market power concentration
within the analyzed sectors. The Herfindahl-Hirschman Index (known as HHI), is a measure of the size
of firms in relationship to the industry and an indicator of the amount of competition among them. It is
defined as the sum of the squares of the market shares of each individual firm: ie the average market
share, weighted by market share. As such, it can range from 0 to 10,000 moving from a very large
amount of very small firms to a single monopolistic producer. Decreases in the Herfindahl index
generally indicate a loss of market power and an increase in competition, whereas increases imply the
opposite. The Lorenz curve in turn, is a graph showing the proportion of the distribution assumed by
the bottom % market share values. It is used to represent market shares distribution, where it shows
for the bottom x% of companies in the sector, what percentage y% of the market share they have.
The percentage of companies is plotted on the x-axis, the percentage of market share on the y-axis.
It is considered it to be a measure of inequality of the market shares within the given sector. The Gini
coefficient is a measure of statistical dispersion in the market shares defined as the field between the
diagonal and the Lorentz curve. It is defined as a rat io with values between 0 and 1. A low Gini
coefficient indicates more equal market shares, while a high Gini coefficient indicates more unequaldistribution. 0 corresponds to perfect equality (all companies having exactly the same market share)
and 1 corresponds to perfect inequality (where one monopolist has all the market share, while
everyone else has zero share in the market).
Forecasting models
Risk-profitability maps
The forces map
Several concentration measures are used to examine the degree of the market power concentration
within the analyzed sectors.
The Herfindahl-Hirschman Index (known as HHI), is a measure of the size of firms in relationship to the
industry and an indicator of the amount of competition among them. It is defined as the sum of the
squares of the market shares of each individual firm: ie the average market share, weighted by market
share. As such, it can range from 0 to 10,000 moving from a very large amount of very small firms to a
single monopolistic producer. Decreases in the Herfindahl index generally indicate a loss of market
power and an increase in competition, whereas increases imply the opposite.
The Lorenz curve in turn, is a graph showing the proportion of the distribution assumed by the bottom
% market share values. It is used to represent market shares distribution, where it shows for the
bottom x% of companies in the sector, what percentage y% of the market share they have. The
percentage of companies is plotted on the x-axis, the percentage of market share on the y-axis. It is
considered it to be a measure of inequality of the market shares within the given sector.
Concentration measures
Herfindahl-Hirschman Index
Lorenz Curve
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Dairy Product Manufacturing
The Gini coeffic ient is a measure of statistical dispersion in the market shares defined as the field
between the diagonal and the Lorentz curve. It is defined as a ratio with values between 0 and 1. A
low Gini coefficient indicates more equal market shares, while a high Gini coefficient indicates more
unequal distribution. 0 corresponds to perfect equality (all companies having exactly the same market
share) and 1 corresponds to perfect inequality (where one monopolist has all the market share, while
everyone else has zero share in the market).
Gini coefficient
Forecasts presented in EconTrends for Romania relate to a period of two years ahead in relation to
the end of the time period for which statistical data are available.
Liquidity (of public company) - ranked accordingly to the averaged daily shares' turnover from the last
Betas and Required Rates of Return - are calculated for listed companies under CAPM model.
- rate of return from investments in shares of an analysed company,
- Leveraged Beta,
- Unleveraged Beta,
- Required Rate of Return, where:
DuPont Pyramid is a very useful tool to decompose Return on Equity (ROA) into various ratios like:
Return on Assets (ROA), Return on Sales (ROS) and Total Assets Turnover (TAT). It enables easy
drawing of c onclusions about the efficiency of an analyzed company in various areas of its act ivity.
- effective tax rate.
- required (by investors) rate of return from investments in the shares of an analysed company; i.e.
the expected rate of return when the market stays in equilibrium under CAPM assumptions,
- 5Y rate of return of a stock market index (BET),
- 5Y expected rate of return of the stock market index (BET),
- risk-free rate of return (of 12-month average Bucharest Interbank Bid Rate),
- debt to equity ratio,
Distributions of Financials present crit ical values of the distributions of various financials in the
analyzed sector. The presented critical values represent quartiles of the empirical distribution i.e. they
are calculated for 20%, 40%, 60% and 80% of the total populat ion of companies from the given
sector. These distribut ions make possible easy comparison of an analyzed company to othercompanies in the sector, looking at it from various financial angles.
Market multiples (P/E, P/BV) - are widely used for the valuation purposes. Price to Earnings (P/E) is
calculated by dividing closury company's capitalisation in the year after analysed year by the earnings
(net profits) from the last year. For the calculation of Price to Book Value (P/BV) the ending year book
value is taken.
Y/Y Increase, Y/Y Dynamics. Increases are calculated as absolute differences with respect to the
preceding year (Y/Y). Dynamics are calculated as relat ive [%] differences with respect to the
preceding year (Y/Y).
M
MiL
RVar
RRCov ,
E
DL
U
11
iR
iR
MR
MR
fR
E
D
fMfi RRRR
Y/Y Increase, Y/Y Dynamics
Forecasts
Distributions of Financials
DuPont Pyramid
Market multiples (P/E, P/BV)
Betas and Required Rates of Return
Liquidity