Lesnaya Industriya: Profitability ratio of Russian forest industry companies decreased harshly

Oct 06, 2009. /Lesprom Network/. Profitability ratio of Russian forest industry companies decreased harshly, as indicated in the annual Top 50 Russian Forest Industry rating published by Lesnaya Industriya journal. Following the results of 2008, joint revenue of companies listed in the Lesnaya Industriya’s Top 50 amounted to 216.34 billion roubles ($7.19 billion). Ten largest companies had over 70% of the total Top 50 joint revenue. Joint net benefit of 50 companies made up 6.26 billion roubles ($208.1 million). Share of woodworking companies that do not deal in pulp and paper business was slightly over 27% of the total revenue and 26.8% of the total net benefit. Average profitability ratio of Top 50 companies decreased to 0.7%, compared to 9.0% in the previous year. Woodworking companies’ profitability was slightly higher than that of pulp and paper companies (5.7% and 4.9% respectively). Only four of the Top 50 companies managed to reach a double-digit profitability ratio. Zelenodolskiy plywood plant had the highest profitability ratio (17%). The fastest-growing forest industry company in Russia was United Panel Group, which revenue boosted by 89.5% up to 3.04 billion roubles. Among pulp and paper companies, the fastest-growing was Obyedinyonnye bumazhnye fabriki (+49.6% up to 1.76 billion roubles). Ilim Group gained the largest net benefit (1.67 billion roubles) and was also listed in the Top 50 forest industry companies as having the largest revenue (37.92 billion roubles). The Top 50 Russian Forest Industry rating is prepared and published by Lesnaya Industriya journal on the base of companies’ accounting reporting and data provided by their press services.