Differences of Financial Management Strategy of Central European and Russian Milk Processors

DOI 10.7160/aol.2016.080109
No 1/2016, March
pp. 89-102

Špička, J. and Kontsevaya, S. R. (2016) “Differences of Financial Management Strategy of Central European and Russian Milk Processors”, AGRIS on-line Papers in Economics and Informatics, Vol. 8, No. 1, pp. 89 - 102. ISSN 1804-1930. DOI 10.7160/aol.2016.080109.


The aim of this article is a detailed investigation of financial performance of milk processing companies of Central Europe and the Russian Federation before the Russian embargo. An investigated object is a data base of accounting reports of 5 countries over the period of 2009 – 2013. The number of selected companies is 370. The article also involves a short review of the dairy industry condition. In order to compare financial performance of two regions 4 types of criteria i.e. profitability ratios, turnover ratios, liquidity and capital structure were implemented. The differences between the Visegrad group and the Russian Federation were tested through Kolmogorov-Smirnov test at the significance level of 0.05. The main difference between the financial performances is the following: profitability (ROCE) of Russian companies is 3 times higher than in the Central Europe, stock turnover ratio is 2 times lower in the Russian Federation, and credit period is 4 days shorter. Generally speaking, the key difference is higher profitability of Russian companies which may be associated with reduced cost component, different technology of production of dairy products as well as with different capital structure.


Dairy industry, milk processing, financial analysis, controlling, statistical analysis.


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