Audit and consulting company AGIC conducted a dairy products industry benchmark survey in Georgia that serves to identify trends in the dairy products industry based on the first, second, and third size category
companies’ financial statements for 2018.
The report presents the average financial indicators of the sector, which forms the “benchmark” of the sector and provides information on its financial situation.
Methodology
The data used in the study are taken from the website of the Reporting Portal, where the annual financial statements are published by the legislation of Georgia. These companies fall into the first, second, and third categories, of which only three are audited.
This information is based on the data of 2018, focusing on market leaders, the number of which is 19. The study focuses on the overview of the dairy market, in particular the production and export of milk. The data is taken from the website of the International Trade Center.
Research Results
The study reviews companies that produce and sell dairy and dairy products with a total turnover of more than 296 million GEL, total assets of 133 million GEL, and a total profit of up to 14 million GEL before tax.
The study identified industry-leading companies in terms of revenue, assets, and profits. The analysis of the data revealed that Georgian companies have the following financial indicators in the dairy and dairy industry: return on assets averaged 10% (ROA) and Return on Equity (ROE) 32%.
Besides, the financial ratios of the industry’s average liquidity, efficiency, and solvency were determined. Also noteworthy is the number of companies (5 companies) that ended the year with losses, indicating competition in the industry.
The study also revealed the average data for 2018 companies by category. Of the 19 companies listed, only one belongs to the first category, two companies combine into the second category, and the remaining 16 companies fall into the third category.
To see the full version of the survey go to the link