Ghagila’s fundamental analysis / Are dairy companies in debt? – Tejarat News
According to Tejarat News, the increase in the price of raw milk will affect the profits of dairy companies. In addition to the increase in the price of raw materials for the production of dairy companies, the cost of energy, transportation and maintenance has also increased with inflation, and this has caused the profit margin of dairy companies to decrease.
Of course, according to experts, following the increase in the price of milk, there is also a possibility of a 30-35% increase in dairy products. Now we have to see if the 30% growth is the answer to the increase in the costs of dairy companies or not?
Under the pretext of increasing the price of milk, Tejarat News has reviewed the financial statements of Pegah Gilan pasteurized milk company, which operates on the OTC with the symbol Ghagila.
Ghagila’s record in April 1402
Examining the monthly performance report of Pegah Gilan Company shows that despite buying raw milk at the previous rate, the company could not increase its income from the sale of products this month.
So that the sales amount of the company reached 77 billion tomans from 82 billion tomans with a drop of more than 6% this year.
As shown in the graph, the decrease in Ghagila’s income is mainly due to the decrease in the company’s sales this month. It should be mentioned that due to the increase in the price of dairy products in the coming months and due to the possible decrease in per capita consumption of dairy products due to the high price of these products, should we see the decrease in the amount of sales?
Although the income of Farvardin Pegah Gilan is about 413 million tomans higher than the average income of the company for five months, but considering the purchase of raw milk at the previous rate, it can be said that the company could have performed better.
Because according to Farhad Akbari, Chairman of the Central Iranian Cattlemen’s Union, the increase in the price of raw milk will be implemented from April this year, and the difference in the purchase of dairy companies in April must be paid.
This will lead to the creation of debt in April, which will cause a possible increase in Ghagila costs in the performance reports of dairy companies in the following months.
decrease in sales; The result of rising prices
The increase in the price of dairy products has always led to the weakening of the demand side, which leads to a decrease in the sales and profit of the companies and will have harmful effects on the health of the society. According to Ali Ehsan Zafari, CEO and Chairman of the Board of Directors of the Cooperative Union of Pasteurized Dairy Products Producers of Iran, with the 85% jump in the price of dairy products last year, the per capita consumption of these products has decreased by about 35%.
Thus, despite the increase in the sales rate of products, what do dairy companies do with the decrease in demand from consumers?
With these interpretations, isn’t it better for the government to first think about the ever-increasing inflation so that by maintaining the profit margin of the companies, there is no need to increase the price of dairy products and the demand side is not pressured?