Comparative profitability analysis of milk production companies to milk processing companies in Serbia

Abstract

© 2015, Universidade Federal Rural de Pernambuco. All rights reserved. In this paper, milk industry in Serbia was analyzed by comparing a profitability of milk production companies to milk processing companies. The research results for period 2010-2013 suggest that milk processing companies had better return on investment, profit margin and assets turnover than milk production companies in observed period, while difference in return on equity was not significant. Research did not show significant changes in level of profitability during the observed period. Overall profitability analysis indicates that in 2010 there were no significant differences in overall profitability between milk production companies and milk processing companies, but in following period 2011-2013, the difference was significant in favor of the milk processing companies.