EUROPE’S BIGGEST COMPANIES

SEE TOP
industries
Pharma loses grip on most
profitable industries ranking
by Djordje Daskalovich
The rubber and rubber product
makers in Southeast Europe, represented
by two car tire makers
in the SEE TOP 100 ranking, have
dislodged the pharmaceutical firms
from the top spot in the most profitable
industries ranking for 2014,
recording a return on revenue of
14.19%. The pharmaceutical sector,
which had taken the top honours
for four consecutive years, was dethroned
even through in this year’s
rankings it is represented by one
more company compared to the
2014 edition and has three entrants
– Slovenia’s Krka and Lek and
Croatia’s Pliva.
Furniture, a newcomer in the rankings, took
the no.2 place with 13.83% return on revenue,
leaving last year’s leader in the third spot with
11.71%. Furniture, however, had only one representative
this year, Romaina’s Holzindustrie
Schweighofer, making it impossible to make
any sweeping conclusions about the state of
the sector in the region as a whole. The same,
although to a slightly lesser degree, applies to
the rubber industry, as it only had two entrants,
both coming from Romania - Continental Automotive
Products and Michelin Romania.
Little has changed in the top five spots on
the 2015 SEE industrial ranking since its
previous edition. The petroleum/natural
gas industry kept its comfortable lead with
total revenues rising 0.04% to 40.58 billion
euro. Despite the growth in revenue, the
sector recorded the biggest drop in net
profit - of 716.5 million euro to 262.5 million
euro.
It should come as little surprise that we are
seeing such a comfortable lead of the petroleum
and natural gas industry having in
mind that the companies from this industry
had the biggest presence in the most
dynamic companies ranking as well with 14
entries. This ranking, which makes its debut
this year, comprises the companies with the
biggest change in revenue compared to the
previous year. The oil and gas sector has a
similarly impressive footprint in the SEE TOP
100 companies ranking, where nearly one
third of the companies hail from the sector,
while at the same time holding spots from
no.2 through to no.7.
Electricity ranked second in the SEE industrial
ranking, staying way below the total revenue
of the leading industry at 15.3 billion euro. The
sector’s revenue fell 5.56% from the previous
year while its total net profit dropped to 495.8
million euro from 529.8 million euro.
Wholesale/retail again took the third position,
recording a 7.02% year-on-year rise in
revenue to 14.48 billion euro and a slightly
lower net profit of 251.7 million euro versus
275.4 million euro in the previous year.
The automobiles sector recorded a jump in
total revenue of 7.1% to 8 billion euro, managing
to extend the steady rise in revenue
over the past couple of years. The companies
coming from this industry also returned to
profitability in the 2014 rankings, recording a
net profit of 84.9 million euro after posting
a combined net loss of 30.5 million euro the
previous year. The sector had eight entrants
this year, one more than in the previous ranking.
It should be noted that FCA Srbija was
not included in this year’s ranking as the
company’s financial data was not available
by print time.
The ascendency of the automobiles industry
in SEE is no news if we have in mind that
last year marked a turning point in the EU
when it comes to the registration of new
passenger cars. 2014 was the first in the last
seven years to see growth of registrations
in the EU.
Telecommunication companies are still losing
ground in terms of revenue. The combined
revenue of the seven representatives
of this sector in the SEE industrial ranking fell
2.12% to 5.1 billion euro in 2014, while their
combined net profit plummeted 26.9% to
432.3 million euro with the sector continuing
to face market saturation and new EU regulations.
Still, telecommunications remained
in the fifth spot of the most profitable industries
with 8.45% return on revenue while
also maintaining the same spot in the 2014
SEE industrial ranking.
SEE industrial ranking
in millions of euro
2014 2013 Industry Total revenue 2014 Y/Y revenue change Net profit/loss 2014 Net profit/loss 2013
1 1 Petroleum/Natural Gas 40 577 0.04% 262.5 979
2 2 Electricity 15 312 -5.56% 495.8 529.8
3 3 Wholesale/Retail 14 484 7.02% 251.7 275.4
4 4 Automobiles 8 005 7.10% 84.9 -30.5
5 5 Telecommunications 5 114 -2.12% 432.3 591.2
6 6 Metals 4 700 -0.38% -2.7 -132.8
7 7 Food/Drinks/Tobacco 3 109 2.71% 114.5 113.8
8 9 Pharmaceuticals 2 479 7.55% 290.2 310.6
9 10 Electronics 1 337 0.38% 19.6 15.6
10 13 Rubber/Rubber Products 1 122 5.45% 159.2 132.9
11 11 Agriculture 1 065 -11.25% -8.4 -2.7
12 14 Chemicals 936.3 48.36% 56.1 29.7
13 8 Construction 917.0 -57.80% 95.6 56.5
14 15 Transportation 497.7 18.98% 15.6 -91.1
15 16 Furniture 474.4 -3.77% 65.6 96.2
Most profitable industries
Industry Return on revenue 2014
1 Rubber/Rubber Products 14.19%
2 Furniture 13.83%
3 Pharmaceuticals 11.71%
4 Construction 10.43%
5 Telecommunications 8.45%
6 Chemicals 5.99%
7 Food/Drinks/Tobacco 3.68%
8 Electricity 3.24%
9 Transportation 3.13%
10 Wholesale/Retail 1.74%
11 Electronics 1.47%
12 Utilities 1.26%
13 Automobiles 1.06%
14 Petroleum/Natural Gas 0.65%
15 Metals -0.06%
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