Money Buzz! Europa

Tag: dairy

  • Dairy and cheese manufacturing sector in Romania, 5% increase in 2019

    Dairy and cheese manufacturing sector in Romania, 5% increase in 2019

    A new study conducted by Coface on the Romanian sector of ”Dairy and Cheese Manufacturing” (NACE 1051) shows a positive evolution of revenues in 2019, +5% compared to 2018, with a slightly higher profitability.

    The results are based on 494 companies that submitted their financial situation for 2019 (as of September 2020) and generated a consolidated turnover of RON 5.4 billion.

    The weight of the cumulative market share held by the most important 10 players is 66%.

    Approximately 34% of the companies registered a net loss at the end of 2019, 18% of the companies having recorded a loss higher than -20% and 10% of them a profit over 20%.

    Most of the companies analyzed by Coface (62%) are classified as low risk companies.

    The companies operating in this sector registered a current liquidity of 1.52 during 2019, the working capital being exposed to negative shocks, in a context of volatility (lower revenues or non-collection of receivables).

    The average duration of debt collection in the analyzed sector decreased from 63 days, the level registered in 2015, to 48 days in 2019.

    Production of milk and dairy products increased in 2019

    According to INS data, the production of milk and dairy products increased in 2019, the largest increase being for drinking milk (8%).

    For the period august 2019 – august 2020, in terms of the amount of milk collected for processing, the largest amount was recorded in June 2020, 108,979 tons.

    Also, the quantity of raw milk imported by the processing units increased by 24,160 tons (+28.2%), in the period January-October 2020 compared to the same period in 2019.

    In regard to dairy products obtained, for the same period, production increases were reported for: butter with 928 tons (+10.8%), drinking milk with 24,655 tons (+9.1%) and cheese with 1,286 tons (+1.6%).

  • Romanian dairy and cheese manufacturing sector – negative revenue evolution

    Romanian dairy and cheese manufacturing sector – negative revenue evolution

    A new study by Coface Romania on the sector of `Dairy products and cheese manufacturing” indicates a negative evolution of revenues in 2018, which decreased with approximately 18% compared to 2017, with a slightly increased profitability.

    The study aggregated the data of 448 companies that submitted their financial situation for 2018 and generated a consolidated turnover of RON 3.8 billion.

    The weight of the cumulative market share held by the most important 10 players is 58%, which indicates a high degree of concentration.

    The companies operating in this sector registered a current liquidity of 0.97 during 2018, the working capital being exposed to negative shocks and volatility (lower revenues or non-collection of receivables).

    The average duration of debt collection in the analyzed sector decreased from 68 days, the level registered in 2014, to 51 days in 2018, while the national average over the same period decreased from 104 days to 90 days.

    The consolidated net result at sectorial level for 2018 was 4.3%, higher compared to the level of 2017 (3.3%). However, 44% of the companies had a net loss at the end of 2018, 26% of the companies registered losses of more than -20% and 5% of the companies generated more than 20% profit. The 55% level of indebtedness in the sector is decreasing compared to the previous years (62% in 2017, 63% in 2016, 67% in 2015 and 69% in 2014). It is worth mentioning that 39% of companies have a negative capitalization degree (equivalent to a debt level of over 100%), and for 17% of the companies the debt level exceeds 80%.

    “During 2018, the companies in the analyzed sector have allocated significant investments for the expansion of fixed assets. The ratio between capital expenditures (CAPEX) and depreciation ratio was 120% in 2018, which means that investments in fixed assets covered the depreciated fixed assets. Almost half of the companies (46%) made investments in 2018, with a supraunitary Capex/ Amortization report”, stated Nicoleta Marin, Senior Financial Analyst, Coface Romania.

    Regarding the payment behavior, respectively, the debts to the State Budget, according to the data published by ANAF, once with the decrease of the number of companies that have registered the debts, the value of the debts has not decreased, reaching the maximum of the period in 2018.

    According to Eurostat, in the European Union the first three countries for milk production and processing are Germany, France and the United Kingdom. Poland ranks 5th in terms of quantity produced and 6th in processing (10 times larger than Romania, although it only produces 3 times more milk).