EXAMINATION OF THE PROFITABILITY OF MEAT PROCESSING, COMPANIES IN THE LIGHT OF POLYCRISIS

Tömöri, Gergő – Varga, Máté

Keywords: ROE, DuPont model, meat industry, poultry processing, epidemics JEL: Q12, Q40

DOI: https://doi.org/10.53079/GAZDALKODAS.68.5.t.pp_413-429
The phenomenon of the early 2020s, described as a polycrisis, which took shape in the presence of the already widespread swine and avian influenza, trade restrictions and border closures due to Covid-19, increasingly extreme weather anomalies, droughts and the increase in feed and energy prices caused by the war in Ukraine. The impact of the polycrisis was concentrated mainly in the Hungarian meat processing, preservation and meat product manufacturing sub-sector, which is based on agriculture. The aim of the study is to separately examine the impact of factors on the performance of three companies operating in this sub-sector: Tranzit-Food Ltd, Kaiser Food Ltd and Sága Foods Plc. during and before the period of the polycrisis. The study examined whether the shortage of raw materials caused by avian influenza and swine fever had a greater impact on the sub-sector than Covid, and whether the latter and the increase in material costs had a different impact on the results of companies with different sales structures. There were also significant differences in the performance of the three companies depending on the year 2020. ROE was affected differently by the time-delayed restrictions for exporters, while the latter were able to absorb more of the exchange rate risk from imports than their competitor that preferred domestic markets the most, which was able to take advantage of rising domestic inflation, another sign of the polycrisis, to achieve higher interest and revenue.
Teljes cikk