The aim and purpose of this paper is to point out to the quality of financial performance and efficiency of food retailers in Serbia, as well as measures for improvement in the future, based on theoretical knowledge and empirical analysis using AHP-TOPSIS methods. The problem of analyzing the financial performance of all companies, which includes trading companies, is very topical, significant and complex. Consequently, mathematical methods and models have lately been increasingly used. With this insight in mind, this paper investigates the financial performance and efficiency of food retailers in Serbia using AHP and TOPSIS methods. Of all the observed optimization criteria (cost of goods sold, operating costs, gross margin and net profit), the most significant was the cost of goods sold. The most efficient food retailer in Serbia is Aman. The Mercator-S Company is inefficient. In order to improve the efficiency of food retailers in Serbia, it is necessary to apply the Western business models (private brand, multichannel sales, organic food sales and others), the concepts of strategic management accounting and to strengthen the digitalization of business.

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Analyzing financial performances and efficiency of the retail food in serbia by using the ahp – topsis method

Due to considerable share in total employment and foreign trade exchange, agriculture represents an important sector of the Serbian economy. It is, therefore, necessary to continuously analyze the financial performance of agricultural companies and key determinants of financial performance. The objectives of this paper are to analyze the corporate income tax burden of agricultural companies in Vojvodina, as well as its impact on company profitability. Statistical tests showed that effective corporate income tax rates (ETRs) in agricultural companies are significantly lower than the statutory corporate income tax rate. Furthermore, nearly 69% of observations have both a current ETR and cash ETR of 0%, which indicates that agriculture is an industry with an exceptionally low corporate income tax burden. Panel regression showed that agricultural companies with lower ETRs are more profitable than companies with higher ETRs. Results of the analysis are not sensitive to changes in corporate income tax burden and profitability proxies.

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Determinants of profitability of the agricultural sector of Vojvodina: The role of corporate income tax

Both theoretical and practical importance have recently been attached to an analysis of the operating profit margin or earnings before interest, taxes, depreciation and amortization (EBITDA margin) as a measure of the long-term performance of companies. In the integrated financial reporting it is presented through various indicators based on it. In view of this, we have made a comparative analysis of the operating profit margin and its impact on the performance of food trade companies in Serbia and comparable countries. Under the influence of different factors, the dynamics of the size of the operating profit margin of food trading companies in Serbia varies from comparable global food retailers in various countries. Based on the obtained results of empirical  research, we can also conclude that the EBITDA margin of the leading food trading companies in Serbia is lower than the in analyzed comparable food retail trade companies from the developed market economies. It points to the conclusion that it is necessary to efficiently manage revenues, costs, profit, assets, and financial structure in order to improve the performance of food trading companies in Serbia in the future. The general conclusion is that it shows a growth tendency and is, nevertheless, lower in comparison to food trading companies from countries of a developed market economy. In order to increase the operating profit margin, as a measure of long-term performance, it is necessary to manage the financial structure of the food trading companies in Serbia as effectively as possible.

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The operative profit margin and interest cost in retail food

Since agriculture is the highly important economic activity in the Republic of Serbia, it is necessary to create an environment in which competitive agricultural enterprises will develop. However, regions in the Republic of Serbia considerably differ regarding the intensity of agricultural activity. This paper examines the impact of agricultural enterprises on the region’s contribution to the gross domestic product (GDP) of the country in the period between 2010 and 2018. Activity of agricultural enterprises was observed using number of agricultural enterprises, number of employees in them, their turnover and gross value added. Random-Effects GLS regression showed that regions with higher agricultural activity contribute to the lesser extent to the GDP of the country. Research results are robust to changing sampling period and lagging independent variables. In this regard, several proposals have been recommended.

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Agricultural enterprises and economic growth: a regional analysis in the republic of serbia

The paper examines factors inﬂuencing development of the public warehouse system. Public warehouse system primary role is to provide stakeholders in agribusiness financing against stored commodity as collateral. Case study is conducted in Serbia. Interviews with banks, analyses of the public warehouse results, computational analyses and intensive literature research were conducted. Most important factors for lending against warehouse receipts from bankers’ perspectives are guarantee system performances followed by efficient enforcement procedure, efficient public warehouse surveillance, favourable central bank’s rating of warehouse receipts and subsidies. According to the results, Serbian public warehouse legal framework is properly established resulting in fast development of the public warehouse system in first years. After 2014 system deteriorated primarily due to the absence of inspection and Indemnity fund low guarantee performance. Lessons learned from Serbia point out that besides proper legal framework, implementation and favourable business environment are paramount for successful public warehouse system.

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Lending against warehouse receipts - evidence from serbia

Agricultural loans present unutilized bank credit market segment in Serbia. This is not only missed profit opportunity for banks, but also serious deficiency that slows down the development of agriculture and rural areas. Paper uses FADN, NBS and bank balance sheet data in order to analyse supply and demand side of this credit market segment, with the aim to better understand the conditions for its development. Paper recommends better education of producers and lenders. Banks should better understand the requirements of agricultural producers and risks of the production to be able to create tailored credits. Insurance has very important role in specific risk hedging and can facilitate agricultural loans. There is also a need to adjust the conditions for obtaining subsidized loans, while the land size is considered as a key prerequisite for obtaining loans in the situation of large fragmentation of properties.

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Stojanović Žaklina

Papers

The importance of bank credits for agricultural financing in serbia