Food Industry’s Performance in Jan. ~ Oct. 2013

By CnAgri2013-12-19 09:23:27 Print

According to statistics, in Jan.~Oct., capital gain rate of large scaled food industry was higher than other industries but its operating profit margin was lower than all industries if government tax preference was excluded. The high capital gain rate and operating profit margin promoted rapid growth of investment, favorable for price stability and decline of residents’ living costs.
　　
The food industry’s assets registered RMB4.82499 trillion in Jan.~Oct., accounting for 5.86% of total industry assets, of which RMB2.6518 trillion was liquid assets, accounting for 6.55% of total liquid assets. The food industry’s debt ratio was 51.81%. Asset-liability ratio was 51.29%, further decline from last month. Its quick ratio was 54.96%, 1.12 times more than the nation’s average level. With fall grain list and purchase increase of agricultural products, proportion of liquid asset and the quick ratio were promoted up.
　　
The food industry’s total assets and liquid assets increased 19.3% and 17.9% respectively in Oct. on the year-on-year basis, far higher than the nation’s industrial average level of 14.0% and 11.9%. Both asset-liability ratio and quick ratio declined 0.7%.
　　
The food industry’s revenue from main business was RMB7.44552 trillion, up 15.7% YOY, accounting for 9.00% of total industry revenues and profit from main business was RMB457.41 billion, up 14.5% YOY, accounting for9.89% of total industry profit. The food industry’s tax payment was RMB235.6 billion, up 12.1% YOY, accounting for 6.75% of total industry tax payment. Profit and tax payment totaled 693.05 billion Yuan, accounting for 8.54% of total industry profit and tax payment.
　　
 Revenue of agro-food processing industry was 4.7649 trillion yuan, ranking 6th.
　　
In general, food industry has high value of investing by generating high ratio of profit and tas with low ratio of asset. Raise of capital organic composition will help improve enterprise’s competitiveness. 
　　
Industrial operation and capital operation efficiency: The food industry’s profit ratio was 6.14% in Jan. ~ Oct., 11% more than the nation’s industrial average. The food industry’s ratio of profit and tax payment against its total assets was 14.36%, 44%more than the nation's industrial average, far higher than other industries’ gain. The food industry’s total asset turnover and liquid asset turnover were 1.54times and 2.81 times respectively in Jan. ~ Oct., 54% and 37% more than the nation's industrial average respectively. High level of turnovers improved capital efficiency and asset’s profitability.

The food industry’s total cost of production was RMB7.1164 trillion in Jan. ~ Oct.,accounting for 8.81% of total industries’ costs, of which RMB6.3335 trillion were the cost of main business, accounting for 8.92% of total industries’ main business costs. The food industry’s marketing expense, management expense and financial expense added up to RMB547.26 billion, 9.45% of total industries’ costs. The food industry’s marketing expense accounted for 15.06% of total industries’ marketing expenses with 3.007 billion yuan, management expense, 6.76% with 1.9124 billion yuan and financial expense 5.73% with 552.9 million yuan. Of the financial expenses, 52.17 billion yuan was payed as bank loan interests, accounting for 5.70%.
　　
For the cost structure, main business cost accounted for 89.00% of total costs, of which, main business cost of agro-food processing industry accounted for 93.15%. The food industry’s marketing expense, management expense and financial expense accounted for 7.7% totally, higher than industry average level of 7.2%. Marketing expense accounted for 4.23%, 70% more than average industry level, of which, marketing expense in food manufacturing and drink industry accounted for 7.90% and 8.60% respectively. Management expense and financial expense accounted for 2.69% and 0.78% respectively.
　　
To improve brand influence, higher ad costs are payed, which influences market competitiveness. Brand nutrition depends on stable products quality, well after-sale services and convenient delivery service etc., short-termed ads do less help.
　　
　　Monthly profit: national industry profit totaled RMB581.02 billion in Oct., a growth of 16.19% on the year-on-year basis, of which, the food industry attained a profit of RMB54.64 billion in Oct., a growth of 17.66% on the year-on-year basis The food industry’s profit rate was 5.89% in Aug., slightly more than the month before. For different food varieties: total profit of agro-food processing industry was RMB28.78 billion, food manufacturing industry, RMB14.03 billion and drink industry, RMB11.83 billion, up 26.28%, 22.32% and -2.87% respectively from last month.  
　　
In all manufacturing industries, agro-food manufacturing industry ranks sixth in terms of total profit, thereby, it has high value of investing.
　　
Monthly profit margin: profit margin of industry and food industry was 6.40% and 6.71% in Oct.. Of food industry, profit margin of agro-food manufacturing, food manufacturing and drink processing was 5.33%, 8.96% and 10.04% respectively.
　　
In all industries, profit margins of oil exploration, ferrous metal mining, tap water and tobacco are higher than drink manufacturing industry with 30.20%, 12.53%, 12.11% and 11.76% respectively.

 

From “China Grains Market Weekly Report”