"BIZNES meble.pl" international 1/2018

industry X analysis T he first place in the ranking of the largest furniture manufac- turers (the ranking includes furniture pro- ducers – PKD 31.01.Z Manufacture of office and shop furni- ture, 31.02.Z Manufacture of kitchen furniture, 31.09.Z Manufacture of other furniture and also mattreses producers – PKD 31.03.Z Manufacture of mat- tresses) in Poland belongs to IKEA In- dustry Poland (net revenue from sale of products, goods and materials over 4.4 billion PLN). The second place – but with the revenue more than four times smaller – is Correct (1.27 billion PLN). On the third place comes Forte ( 1.1 bil- lion PLN) and further: Com.40 Limited (1.08 billion PLN) and Black Red White (1 billion PLN). The largest increase in net income year-over-year reported Correct (incre- ase of 20.47% – 215.97 million PLN). Further Com.40 Limited (increase of 19.61% – 177.27 million PLN), Fabry- ki Mebli Forte SA (increase of 15.7% – 149.85 million PLN), Telmex (incre- ase of 132.23% – 100.76 million PLN) and BRW Comfort (increase of 76.58% – 93.19 million PLN). The largest decre- ases on the other hand in net revenue from sale of products, goods and ma- terials reported: IKEA Industry Poland (decrease of 2.37% – more than 106.95 million PLN), Fabryka Mebli Dekort (decrease of o 54,41% – 36.36 million PLN), Fabryka Mebli Mirjan (decrease of 46,71% – 34,88 million PLN), IMS Sofa (decrease of 14,33% – 31.45 million PLN) and Home Concept (decrease of 29,91% – 30,61 million PLN). Among the 200 companies, the of which data we publish in the ranking, the vast majority, that is 180, recorded a net profit last year, 16 – a loss, and in other cases there was no data. The big- gest net profit last year recorded: Correct (153.77 million PLN), Com.40 Limited (122.87 million PLN), Fabryki Mebli Forte (97.19 million PLN), Grupa G-3 (69.9 million PLN) oraz Dendro Poland Ltd (57.3 million PLN). Total net revenue of all 200 compa- nies in the ranking amounted to 28.6 billion PLN (a year before revenue of the same 200 companies was 25.82 billion PLN so it means an increase of 10.76%), of which 3.26 billion PLN (11.39%) was revenue of producers of office and shop furniture, 2.54 billion PLN (8.89%) – producers of mattres- ses, 782.55 million PLN (2.72%) – pro- ducers of kitchen furniture and 22.02 billion PLN (77%) – producers of other furniture. Fixed assets were altogether 7.29 billion PLN, current assets – 8.95 billion PLN, stock – 3.14 billion PLN, cash and cash equivalents – 1.69 billion PLN, total assets – 19.58 billion PLN, equity – 11.85 billion PLN, net profit – 1.51 billion PLN, long-term liabili- ties – 2.02 billion PLN, and short-term liabilities on the other hand – 4.91 bil- lion PLN. The furniture industry in Poland se- ems to be strongest in Poznań voivode- ship, where 65 (32.5%) of the 200 largest producers have their headquarters, and their revenues in 2016 amounted to PLN 8.93 billion (31.22% of all 200 companies in the ranking). The situation in the furniture indu- stry in Poland is improving every year. The results of profitability confirm that. Profitability indexes show how much profit the industry has from invested money. In general, the higher levels of profitability, the better the situation of enterprises. In 2016 both, return on as- sets (ROA) and return on sales (ROS) improved. ROA reached its maximum height in 6 years, amounting to 7.75%. Compared to the 2015, return on as- sets increased by 0.15 percentage point. The rising margin on furniture sales by 1.34%, which is reflected in the incre- ase of the ROS index to 5.28%, proves the good economic situation prevailing in the furniture industry as well. Only the return on equity (ROE) ratio, refer- ring to return on invested capital, fell to 12.99%. This, however, demonstra- In many aspects, the year 2016 was a record year for the furniture industry in Poland. Demand for Polish furniture is growing and that allows manufacturers to increase the margin on the sold products. The only area for potential future turmoil is the decreasing return on equity and at the same time the decline in external financing, which may indicate that entrepreneurs are hesitating to invest. Record year for furniture manufacturers M a r e k H r y n i e w i c k i AVERAGE BASIC FINANCIAL INDEXES OF THE COMPANIES FORM THE RANKING Index 2010 2011 2012 2013 2014 2015 2016 ROA 7.53% 7.09% 6.40% 6.14% 7.25% 7.60% 7.75% ROS 5.76% 5.05% 4.40% 4.39% 5.07% 5.21% 5.28% ROE 13.83% 13.56% 11.61% 12.13% 14.15% 14.22% 12.99% Debt ratio 42.01% 44.35% 41.94% 45.40% 44.75% 42.72% 36.22% Current ratio 1.39 1.51 1.54 1.45 1.5 1.8 1.8 28.6 billion PLN total net revenue of all 200 companies in the ranking (10.79% year-over-year increase) 26 BIZNES meble.pl [ international edition 1/2018