More than a third of food, beverage and tobacco retail companies saw a drop in revenues in 2016, and about half of them have a medium to high insolvency risk, according to a study from Coface.

The average short-term debt payment period increased to 76 days, while the average time for debt collection went down to 33 days in 2016, from 64 days in 2014.

About a third of these companies do not make a profit from their core activity, while 42% saw their net result dropping. So companies in this sector are highly dependent on recovering debts. Over half of market players in retail are also highly indebted, with an 80% debt ratio.

editor@romania-insider.com