STATISTICAL PRESS RELEASE
11|2016
Central Balance Sheet Study | 24 – Analysis of
enterprises in the wood, cork and paper sectors
25th January 2016
Banco de Portugal published today Central Balance
Sheet Study | 24, which analyses the economic and
financial situation of enterprises in the wood, cork
and paper sectors.
The study focuses mainly on the 2010-14 period
and is based on data from Banco de Portugal’s
Central Balance Sheet Database, supplemented by
details on bank loans obtained by these enterprises
from the Portuguese financial system.
The results are broken down by size class
(microenterprises, small and medium-sized
enterprises (SMEs) and large enterprises) and
economic activity segments (‘forestry’, ‘wood and
furniture’, ‘cork’ and ‘paper’). It also includes a
comparative analysis with the non-financial
corporations (NFC) aggregate.
Structure and dynamics
7,000 enterprises, mostly microenterprises. 12 per cent
were exporting enterprises.
In 2014 the wood, cork and paper sectors
comprised around 7,000 enterprises, accounting
for 2 per cent of the total number of enterprises in
Portugal, as well as 3 per cent of turnover and
number of employees. By economic activity
segment, ‘wood and furniture’ had the largest share
of enterprises and employment (58 and 59 per cent
respectively). ‘Paper’, on the other hand,
concentrated the largest share of turnover (44 per
cent) (Chart 1). By size class, more than 80 per cent
of enterprises were microenterprises. However,
large enterprises were responsible for the largest
share of turnover (50 per cent).
In 2014 turnover in the wood, cork and paper
sectors was, on average, 1.5 times higher than total
NFC’s, while the average number of employees was
1.4 times higher.
Turnover growth in these sectors was positive
between 2006 and 2014. However, the number of
enterprises and the number of employees
declined. Nonetheless, in 2014 the number of
enterprises increased more substantially (3 per
cent) than in total NFC (2 per cent).
Chart 1 • Structure | By economic activity
segments (2014)
100 %
6%
11 %
80 %
17 %
44 %
60 %
58 %
13 %
16 %
40 %
59 %
32 %
20 %
25 %
8%
12 %
Turnover
Number of
employees
0%
Number of
enterprises
Forestry
Wood and furniture
Cork
Paper
The export sector comprised 12 per cent of the
number of enterprises, 49 per cent of the number
of employees and 52 per cent of turnover of
enterprises in the sectors under review, figures
which were higher than in total NFC (6, 25 and
37 per cent respectively) (Chart 2).
Chart 2 • Weight of the export sector (2014)
60 %
52 %
50 %
40 %
25 %
30 %
20 %
10 %
49 %
37 %
12 %
6%
0%
NFC
Number of enterprises
Wood, Cork and Paper Sectors
Turnover
Number of employees
Activity and profitability
Turnover increased by 5 per cent in 2014. Growth was
boosted by all economic activity segments, particularly
‘wood and furniture’.
In 2014, turnover in the wood, cork and paper
sectors increased by 5 per cent from the previous
year, 3 percentage points (p.p.) above that seen for
total NFC (Chart 3).
Chart 3 • Turnover | Annual growth rate (in
percentage) and contributions (in p.p.)
Table 1 • EBITDA | Share of enterprises with
EBITDA growth and with negative EBITDA
5
5
0
Forestry
Forestry
Cork
Cork
2012
2012
2013
2014
2013
2014
Wood and furniture
Wood and furniture
Paper
Paper
NFC
NFC(gr.
(gr.rate)
rate)
35,3 %
Wood, Cork and Paper
Sectors
56,6 %
53,7 %
30,4 %
29,6 %
Microent.
56,8 %
54,2 %
33,6 %
32,6 %
SMEs
56,1 %
52,1 %
16,9 %
17,6 %
Large ent.
52,0 %
63,0 %
0,0 %
0,0 %
Forestry
62,5 %
55,4 %
23,3 %
24,1 %
Wood and
furniture
55,4 %
53,2 %
35,2 %
33,3 %
Cork
52,5 %
51,3 %
23,6 %
25,7 %
Paper
57,2 %
57,3 %
20,6 %
23,5 %
By size
classes
Wood, Cork and Paper
Sectors (gr. rate)
SMEs contributed the most to turnover growth in
the sectors under review (2.5 p.p., associated to a
7 per cent growth). All economic activity segments
contributed to an increase in turnover, particularly
‘wood and furniture’ (8 per cent growth and 2.5 p.p.
contribution to turnover growth in these sectors).
The 5 per cent growth in turnover was largely due
to the performance of the domestic market (3 p.p.
contribution). However, the external market also
made a positive contribution, similarly to what was
observed in total NFC (Chart 4).
Chart 4 • Turnover | Contributions of the
external and internal markets (in p.p.) to the
annual growth rate (in percentage)
By
economic
activity
segments
Over the entire 2010-14 period, only in 2010 did the
profitability stand below the average corporate
performance in Portugal (Chart 5).
Chart 5 • Return on equity
20 %
20 %
15 %
15 %
10 %
10 %
5%
0 %5 %
-5 % 0 %
-10 %-5 %
-15 -10
% %
Forestry
2010
2011
Forestry
2010
2011
Cork
Cork
-15 %
20 %
Wood and furniture
2013
2014
Wood and furniture
2013
2014
Paper
Paper
2012
2012
NFCNFC
0%
Wood, Cork and
Paper Sectors
Financial structure
External market
Turnover
Operating expenses followed turnover’s growth,
increasing by 6 per cent in 2014. The contribution
of Cost of Goods Sold and Materials Consumed
(4 p.p.) was particularly relevant to these
developments.
The increase in EBITDA was similar to that in
turnover (5 per cent) and more favourable than in
total enterprises. The share of enterprises with
negative EBITDA was 30 per cent, 5 p.p. below that
of total enterprises (Table 1).
The EBITDA margin amounted to 12 per cent and
the net margin stood at 5 per cent, compared with
8 and 1 per cent respectively in total enterprises.
Return on equity was 9 per cent in 2014, with the
performance of ‘paper’ standing out (14 per cent),
contrasting with the ‘wood and furniture’ segment
(0.2 per cent).
In 2014 the wood, cork and paper sectors had a
capital ratio of 40 per cent. While not representative
of the situation in most enterprises (half of them
stood below 25 per cent), this average value was
higher than that posted by total NFC in Portugal
(30 per cent) (Chart 6).
In that year, approximately 25 per cent of
enterprises in the sectors under review were
critically leveraged, posting negative equity.
However, since 2010 this share has been below the
average for total NFC (30 per cent).
Chart 6 • Capital ratio
60 %
40 %
20 %
0%
NFC
Wood, Cork
and Paper
Sectors
By size classes
(2014)
Weighted average
Paper
Internal market
Wood, Cork and Paper Sectors
Cork
NFC
25% of enterprises posted negative equity. Bank loans and
debt securities accounted for the largest share of interestbearing debt.
Wood
furn.
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
Large
-20 %
Forest.
Set. da Madeira, da Cortiça
e do Papel (tx. cresc.)
2011
2011
2014
36,2 %
SMEs
Silvicultura
2010
2010
2013
53,9 %
Micro
-5
-5
-10
-10
2014
2014
53,6 %
2014
2013
Cortiça
2013
NFC
2010
2012
Enterprises with
negative
EBITDA
Enterprises with
EBITDA growth
20
20
15
15
10
10
2014
iário
BANCO DE PORTUGAL • Central Balance Sheet Studies | 24 – Analysis of enterprises in the wood, cork and paper sectors
2010
1
2
By economic activity
segments (2014)
Median
Statistical Press Release • 11 | 2016
Interest-bearing debt accounted for around 57 per
cent of liabilities in these sectors (Chart 7). Bank
loans were the most relevant component of this
item (22 per cent of liabilities), together with debt
securities (21 per cent).
Chart 7 • Liabilities structure (2014)
100 %
80 %
60 %
40 %
20 %
0%
NFC
Wood, Micro
Cork
Paper
Sec.
SMEs
Large Forest. Wood
furn.
By size cl.
Cork
Paper
By econ. activ. seg.
Debt securities (A)
Bank loans (B)
Intra-group financing (C)
Other financial debt (D)
Trade credits
Other liabilities
(A + B + C + D) = Interest-bearing debt
Bank loans were particularly important for SMEs
(accounting for 42 per cent of liabilities). In the ‘cork’,
‘wood and furniture’ and ‘forestry’ segments, bank
loans corresponded to 35, 31 and 17 per cent of
liabilities respectively. In ‘paper’, the main source of
interest-bearing debt was the issuance of debt
securities, which accounted for 43 per cent of
liabilities in 2014. In fact, among large enterprises,
debt securities accounted for the largest share of
liabilities (40 per cent).
Data available for the first half of 2015 compiled by
Banco de Portugal’s Central Credit Register shows
that credit granted to the wood, cork and paper
sectors by the resident financial system grew by
7 per cent from the same period in 2014, despite
declining by 14 per cent overall from 2010. The nonperforming loans ratio stood at 15.6 per cent,
slightly below that for NFC (16.3 per cent) (Chart 8).
Chart 8 • Non-performing loans ratio by
economic activity segments (end-of-period
figures)
The financial pressure ratio, i.e., the weight of
interest expenses on EBITDA, generated by
enterprises in these sectors, increased marginally in
2014 (0.4 p.p., standing at 14 per cent), while for the
NFC aggregate it decreased by 2 p.p. (Chart 9). The
increase in the financial pressure ratio was only due
to large enterprises (2 p.p. rise, to 12 per cent),
given that this indicator declined among the
remaining size classes. By economic activity
segment, financial pressure rose only in the ‘paper’
segment (2 p.p., to 13 per cent). There was a
widespread decrease in financial pressure across
the remaining activity segments, with ‘cork’ standing
out with a 6 p.p. decrease (to 14 per cent).
Chart 9 • Weight of interest in EBITDA (2013 and
2014)
40 %
20 %
0%
NFC Wood, Micro SMEs Large Forest. Wood Cork Paper
Cork
furn.
Paper
Sec.
By size classes
2013
By economic activity
segments
2014
In approximately 66 per cent of enterprises in the
wood, cork and paper sectors, interest expenses
consumed less than half of EBITDA, compared with
61 per cent for the NFC aggregate. In turn, for
28 per cent of enterprises in the sectors under
review, financial pressure was higher than 1, a share
below the one for total NFC (34 per cent).
Trade credit financing
30 %
30 %
20 %
20 %
Sectors did not obtain net funds through trade credit
financing.
10 %
10 %
0%
0%
total NFC. However, the median value of the annual
growth rate in interest for the sectors under review
stood at -13 per cent, which suggests that the
increase, on average, was not representative of
most enterprises in these sectors.
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Forestry
Wood
and furniture
2010
2011
2012
2013
2014
2015
2010
2011
2012
2013
2014
2015
Forestry
Wood
and furniture
Cork
Paper
Cork
Paper
NFC
Wood, Cork and
Paper Sectors
Financial costs and solvency
Financial pressure increased for large enterprises and the
‘paper’ segment.
In 2014, the average annual growth rate in interest
expenses in the wood, cork and paper sectors was
8 per cent, comparing with a 7 per cent decline for
In 2014, trade credit financing accounted for 20 per
cent of liabilities in the wood, cork and paper
sectors (16 per cent of liabilities in the NFC
aggregate).
On average, enterprises took five days longer to
receive payments from their customers than to pay
their debt to suppliers. Among NFC the situation
was more favourable, given that average days sales
outstanding were lower than days payable
outstanding.
The net indicator of trade credit financing, as a
percentage of turnover, stood at -6 per cent in
3
4
BANCO DE PORTUGAL • Central Balance Sheet Studies | 24 – Analysis of enterprises in the wood, cork and paper sectors
2014, which indicates that these sectors did not
obtain net funding through this means, similarly to
what was observed in most NFC (with a negative
balance equivalent to 3 per cent of turnover)
(Chart 10).
Chart 10 • Net trade credit financing | In
percentage of turnover, by economic activity
segments
0%
0%
-5 %
-5 %
-10 %
-10 %
-15 %
2010
2010Forestry 2011
2011
Forestry
Cork
Cork
NFC
2012
2012
Wood and furniture
2013
2014
2013
2014
Wood
Paper and furniture
Paper
Wood, Cork and
Paper Sector
Note: Net trade credit financing was calculated as the
difference between accounts payable (net of advances) and
accounts receivable (net of advances and adjustments).