The non-specialized wholesale of food, beverages and tobacco

For the current analysis, data were collected from 2,735 companies that submitted their financial data for 2016 and generated a consolidated turnover of RON 23.02 MLD. Companies in the analyzed sector (4639 Non-specialized Wholesale of Food, Beverages and Tobacco) recorded a positive revenue trend in 2016, rising by about 5% compared to 2015, and a slight increase in profitability compared to 2015.

strengths

• Increase by 5% of consolidated revenue at sector level.
• Improving cash flow from 8% in 2014 to 27% in 2016.
• Maintaining the same level of indebtedness as in 2015 (57%).
• Decrease in the debt collection time from 36 to 32 days.
• Positive evolution of return on equity (from -26.1% in 2012 to 12.2% in 2016), with a 43% capitalization at consolidated level
• Coverage of interest expense by operating result at consolidated level has a positive trend across periods, reaching 16.5 in 2016.
• More than half of the companies made investments in 2016, recording a Capex report / Surplus Depreciation
• Increasing investment over the last four years under review from 2013 to 2016, but lower compared to other sectors. (CAPEX: 9.4%, 6.8%, 8.2%, 3.8% vs. Depreciation: 6.0%, 6.5%, 5.8%, 5.9%).
• Reducing by about 64% in the number of companies that recorded debts to the State Budget in 2017 compared to the previous year.
• Positive trajectory of household consumption expenditure on agri-food products, alcoholic and non-alcoholic beverages and tobacco

Weaknesses

• More than a third of the companies reported a decrease in revenue.
• 42% of companies recorded a decrease in net result, with almost a third (29%) of companies operating in the sector not earning profit from their core business.
• The slight increase in payment terms to suppliers from 74 to 76 days, as the operational cycle decreases from 69 to 67 days.
• 37% of companies have current liquidity below 1.
• 54% of companies pay their debts later than their business cycle (the negative money conversion cycle), and at a consolidated level, the negative value of the money-conversion cycle rose from -5 days in 2015 to -9 days in 2016.
• Short-term focus on financing (85% of total liabilities are current debts), with 60% of companies having only current debts.
• Low autonomy from the perspective of covering operating and financial expenses of the monetary order, considering only the current treasury and the collection of all receivables recorded on the balance (52 days).
• 40% of the companies in the sector have an insolvency risk above average.
• Higher polarization in terms of turnover achieved by Top 10% players (89.5% in 2016).
• The values of bank incidents and debts to the state budget reached the maximum of the last 8 years in 2017