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MIRA INFORM REPORT
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Report No. : |
486591 |
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Report Date : |
22.01.2018 |
IDENTIFICATION DETAILS
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Name : |
NIKORA TREIDI SS |
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Formerly Known As : |
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NIKORA TRADE SHPS ·
NIKORA TRADE LLC ·
MASIV SHPS
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Registered Office : |
M.Kavtaradze Street 11, Nadzaladevi District, Tbilisi 0180 |
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Country : |
Georgia |
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Financials (as on) : |
31.12.2016
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Date of Incorporation : |
14.08.2006 |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Operators of 215 supermarkets |
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No. of Employees : |
3,000
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RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Maximum Credit Limit : |
LARI 5,800,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Georgia |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
GEORGIA - ECONOMIC OVERVIEW
Georgia's main economic activities include cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese, copper, and gold; and producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals in small-scale industries. The country imports nearly all of its needed supplies of natural gas and oil products. It has sizeable hydropower capacity that now provides most of its energy needs.
Georgia has overcome the chronic energy shortages and gas supply interruptions of the past by renovating hydropower plants and by increasingly relying on natural gas imports from Azerbaijan instead of from Russia. Construction of the Baku-T'bilisi-Ceyhan oil pipeline, the South Caucasus gas pipeline, and the Kars-Akhalkalaki railroad are part of a strategy to capitalize on Georgia's strategic location between Europe and Asia and develop its role as a transit hub for gas, oil, and other goods.
Georgia's economy sustained GDP growth of more than 10% in 2006-07, based on strong inflows of foreign investment and robust government spending. However, GDP growth slowed following the August 2008 conflict with Russia, and sunk to negative 4% in 2009 as foreign direct investment and workers' remittances declined in the wake of the global financial crisis. The economy rebounded in the period 2010-17, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high.
The country is pinning its hopes for renewed growth on a continued effort to liberalize the economy by reducing regulation, taxes, and corruption in order to attract foreign investment, with a focus on hydropower, agriculture, tourism, and textiles production. Georgia has historically suffered from a chronic failure to collect tax revenues; however, since 2004 the government has simplified the tax code, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. Georgia plans to improve the domestic investment environment through a four-year economic plan targeting the tax system, educational standards, infrastructure, and governance. The government has received high marks from the World Bank for improvements in business transparency. Since 2012, the Georgian Dream-led government has continued the previous administration's low-regulation, low-tax, free market policies, while modestly increasing social spending, strengthening anti-trust policy, and amending the labor code to comply with International Labor Standards. In mid-2014, Georgia signed an association agreement with the EU, paving the way to free trade and visa-free travel. Georgia is also seeking to expand trade with China, concluding substantive negotiations on a trade agreement in October 2016.
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Source : CIA |
COMPANY NAME
Nikora Treidi SS (Correct)
JSC NIKORA
TRADE
(Requested)
ADDRESS
Building : TC
“Karvasla", 4th Floor
Street : Ts. Dadiani Street 7
Area : Gldani-Nadzaladevi District
Town : Tbilisi 0101
Country : Georgia
Telephone : (995 32) 273 0003 / Mobile (995
591) 119 160 (Financial Director) / (995 595) 142 828 (Chief Accountant) / (995
591) 950 007 (Executive Director)
Fax : (995 32) 273 0003
E-Mail : t.aleksandria@nikoratrade.ge
Website : www.nikorasupermarket.ge
Trading Style : Nikora
/ Nugeshi / Libre / Sunday
Extended
Name : Nikora
Treidi Saaktsio Sazogadoeba
English
Translation : Nikora Tarde JSC
Formerly
known as : Nikora Trade ShPS / Nikora Trade LLC / Masiv ShPS
SENIOR
COMPANY PERSONNEL
Name Position
Supervisory Board
Vasil Sukhiashvili Chairman
Management Board
1. Davit Urushadze CEO
2. Lika Sukhiashvili Commercial Director
3. Temur Aleksandria Financial Director
4. Tea Pipia Chief Accountant
Total Employees : 3,000
PAYMENTS
No complaints have been heard regarding payments from local suppliers or
banks.
In 2016 subject incurred consolidated loss of LARI (7,679,000) due to
currency fluctuations.
Subject is a member of Nikora Group of Companies, which is the leading
food processing group in Georgia with estimated meat products market share of
55%. Subject incorporates meat products, semi-finished products, fish products,
dairy products, ice-cream, bakery products, frozen confectionary, soft drinks
and wine companies.
We consider it is acceptable to deal with subject for LARGE amounts,
although it is normal accepted practice for international suppliers to deal on
secured terms with Georgian importers.
Opinion on maximum credit : LARI 5,800,000 (no reason is heard to doubt
the company, however in view of the past loss situation we recommend
international suppliers exercise a degree of caution)
Trade risk assessment: Normal
PRINCIPAL BANKERS
NAME : TBC
BANK JSC
Branch : Marjanishvili
Street 7
Town : Tbilisi
0102
Telephone: (995 32) 227 2727
Fax : (995
32) 277 2774
FINANCIAL INFORMATION
Consolidated Balance Sheets as at 31 December 2016 showed :
31/12/2016 31/12/2015
31/12/2014
(in thousands of LARI)
Assets
Non-Current Assets
Goodwill
38,227 38,227 1,599
Property, plant and equipment 17,462 20,415 8,401
Intangible assets
1,535 1,700 712
57,224 60,342 10,712
Current Assets
Inventories
15,174 14,260 5,598
Trade and other receivables
5,599 2,648 202
Other current assets
32 32 812
Current income tax assets - 539 328
Cash and bank balances
1,733 1,104 614
22,538 18,583 7,554
Total Assets
79,762 78,925 18,266
Equity and Liabilities
Charter capital
19,597 19,597 2,000
Revaluation reserve
320 272 -
Accumulated profit (loss)
(14,509) (6,828) 393
5,408 13,041 2,393
Non-controlling interest
- (2) 6
Total Equity
5,408 13,039 2,399
Non-Current Liabilities
Loans and borrowings
18,827 29,106 3,310
Bonds
13,234 - -
Deferred tax liabilities - 201 722
32,061 29,307 4,032
Current Liabilities
Trade and other payables
33,550 25,225 8,462
Loans and borrowings
8,482 11,354 3,373
Bonds interest payable
176 - -
Provision for bonus cards
85 - -
42,293 36,579 11,835
Total Equity and Liabilities
79,762 78,925 18,266
Consolidated Income Statement
31/12/2016 31/12/2015
(in thousands of LARI)
Revenue
218,637 165,369
Cost of sales
(166,663) (127,823)
Gross profit 51,974 37,546
Other income
238 1,461
Selling and marketing expenses (29,385) (30,320)
Administrative expenses (20,648) (10,604)
Other expenses
(1,020) (260)
Results from operating activities 1,159 (2,177)
Finance costs
(4,640) (2,554)
Other financial items (3,268) (2,768)
Other non-operating expenses (1,083) (260)
Profit (loss) before income tax (7,832) (7,759)
Income tax (expenses) recovery 153 568
Profit (loss) for the year (7,679) (7,191)
Historical Profit and Loss Account
Revenue : LARI 165,369,000 - 2015 - exact
: LARI 218,637,000 - 2016 - exact
: LARI 289,789,000 - 2017 – exact
Net Profit : LARI (7,191,000) - 2015 - exact
(Loss) : LARI (7,679,000) - 2016 – exact *
* In 2016 subject incurred consolidated loss of LARI (7,679,000) due to
currency fluctuations.
Financial year ends 31 December.
The following financial information applies to subject’s affiliated
company, Intreidi ShPS (latest available) :
Sales Turnover : LARI
9,300,000 - 2010 - exact
: LARI 7,110,000 - 2011 - exact *
: LARI 8,000,000 - 2012 – exact
: LARI 6,700,000 – 2013 - exact
: LARI 5,348,740 – 2014 – exact **
: LARI 10,300,000 – 2015 – exact
Net Profit : LARI 50,000 - 2011 - exact
: LARI 56,200 – 2012 – exact
: LARI 60,712 – 2013 – exact
: LARI 80,200 - 2014 – exact **
: LARI 300,000 – 2015 – exact
* Decrease in sales turnover in 2011 was due to unfavourable market
conditions.
** 11 months results (January - November).
Financial year ends 31 December.
The following financial information applies to subject’s ultimate parent
company, Nikora ZS (latest available):
Sales Turnover : LARI 10,000,000 - 2005 - exact
: LARI 29,444,571 - 2006 – exact
*
: LARI 45,595,000 - 2007 - exact
: LARI 63,017,275 - 2008 – exact
**
: LARI 56,380,774 - 2009 - exact
: LARI 63,646,853 - 2010 – exact
: LARI 64,800,585 - 2011 – exact
: LARI 44,600,841 - 2012 – exact
: LARI 58,000,000 - 2013 – exact
: LARI 50,000,000 – 2014 – exact
Net Profit : LARI 3,500,000 - 2006 - approx
: LARI 5,500,000 - 2007 - approx
: LARI 2,834,740 - 2008 - exact
: LARI 3,343,508 - 2009 - exact
: LARI 2,719,451 - 2010 - exact
: LARI 3,335,093 - 2011 - exact
: LARI 7,400,000 - 2012 – exact
:
LARI 7,800,000 – 2013 – exact
: LARI 3,000,000 – 2014 – exact
Total Value of Stock Held : LARI 6,902,625 (as of July 2013)
* Sharp increase in sales turnover in 2006 was attributed to increased
production capacity.
** Sharp increase in sales turnover in 2008 was attributed to increased
demand on sold products.
Financial year ends 31 December.
LEGAL STATUS AND HISTORY
Date Started : 14
August 2006
History : The subject company was established in Tbilisi on 14 August
2006 as a limited liability company under the name Masiv
ShPS. In 2010 Nikora
JSC bought 100% of the shares of the LTD Masiv, after which the company changed
its name to Nikora Trade ShPS. Since 2010, the supermarkets owned by Nikora JSC
has been transferred into the ownership of Nikora Trade ShPS, the trading
network has been merged and after that the company continues operation as a
single network.
By 2011, Nikora Trade owned 70 modern stores, which offered the customers
high quality retail services. In 2011-2013 the network was expanded and
modernized in Tbilisi and in the regions. In 2014, the company acquired Sunday,
Ki batono and Hommart networks. After the acquisition of Nugeshi network by the
subject company in August 2015, the company became the largest supermarket
network in the country and currently employs about 3,000 employees and occupies
18% of the organised retail network. In July 2017, subject was converted into a
joint stock company with the present name and ownership.
ID Code : 206255808
Authorised Capital : LARI
19,597,000
Paid-Up Capital : LARI
19,597,000
Saaktsio
Sazogadoeba (joint stock company) (ZS) with the following directors and
shareholders :
Shareholders Percentage
1. Nikora
ZS
87.36%
Merab Kavtaradze Street 11
Nadzaladevi District
Tbilisi 0180
Telephone: (995 32) 269 5551 / 269 5550 /
269 4002 / 269 1180 /
269 0127 / Mobile (995 599) 713 473 (Medea
Chikhradze)
Fax
: (995 32) 695 551
E-Mail
: medeach@gmail.com
Website
: www.nikora.ge
Managing Director : Irakli Bokolishvili
Employees: 520
Est.: 18 December 1998
C.R. No. : 1/4-864
ID Code : 200050675
Capital : LARI 6,470,588
Shareholders :
- Vasily Sukhiashvili -
29.99%
- Nikora ZS (undistributed shares) - 22.03%
- Oleg Gubanov - 12.99%
- D. Dumbadze - 11.00%
- T. Tsirekidze -
9.00%
- Maka Salukvadze - 7.00%
- Guram Tsertsvadze - 4.99%
- Irakli Nikolaishvili - 3.00%
2. Nikora
Trade JSC (subject company)
10.00%
3. 16
Individuals 2.64%
Affiliated companies of the subject company :
Subsidiaries
1. Lazi Holding LLC 67%
2. Nugeshi LLC 100%
Associates
Subject is a member of the Nikora Group of Companies, which includes the
following companies:
1. Intreidi Poti ShPS
D. Aghmashenebli Street 9
Poti
Est.: 27 April 2009
ID Code: 215149097
Managing Director: Davit
Mamardashvili
(Georgian national / Personal
No.: 53001010671)
Sole Shareholder: Nikora
ZS
2. Multitreidi ShPS
Merab Kavtaradze Street 11
Tbilisi 0180
Georgia
Est.: 29/06/2009
ID Code : 200273765
Managing Director: Kakhaber
Lepsaia
(Georgian national / Personal
No. : 01024034286)
Sole Shareholder: Nikora
ZS
3. Mzareuli 1 ShPS
Merab Kavtaradze Street 11
Tbilisi 0180
Georgia
Est.: 11/05/2004
C.R. No. : 1/4-355
ID Code : 200104699
Managing Director: Archil
Kochorashvili
(Georgian national / Personal
No. : 01012029005)
Sole Shareholder: Nikora
ZS
4. Nikora 7 ShPS
D. Aghmashenebli Street 9
Poti
Est.: 15/03/2006
C.R. No. : 340/022-SHPS
ID Code : 215133193
Managing Director: Revazi
Narmania
(Georgian national / Personal
No. : 19001003206)
Sole Shareholder: Nikora
ZS
5. Nikora Safirmo ShPS
6. Okeane 1 ShPS
Merab Kavtaradze Street 11
Tbilisi 0180
Georgia
Est.: 05/06/2008
ID Code : 200265239
Director: Genadi Buda
(Georgian national / Personal
No. : 01009001240)
Sole Shareholder: Nikora ZS
7. Chveni Permeri ShPS
(address as per heading)
Est.: 05/06/2008
ID Code : 200265220
Managing Director: Irakli
Nikolaishvili
(Georgian national / Personal
No. : 01015002814)
Sole Shareholder: Nikora ZS
8. Agia ShPS
Vakijvari Village
Ozurgetis District
Date Started : 15/12/1995
C.R. No. : 44/4-21
ID Code : 237074857
Director: Otar Chkhartishvili
(Georgian national / Personal
No. : 33001027824)
9. Intreidi ShPS
Peikrebi Street 14
Tbilisi 0153
Telephone: (995 32) 262 1342 /
Mobile (995 595) 959 696 (Ilia
Sharikadze) / (995 595) 904 355
(Lasha Davitaia)
Fax : (995 32) 262 1464
E-Mail : contact@nikora.ge / ilia@nikora.ge
Website : www.nikora.ge
Managing Director: Ilia
Sharikadze
Est.: 3 November 2004
C.R. No. : 1/4-485
ID Code : 200115883
Capital : LARI 2,000
Sole shareholder:
- Nikora ZS
10.Napareulis Dzveli Marani ShPS
Napareuli
Telavi District
Date Started : 25 July 2005
C.R. No. : 34/5-b-443
ID Code : 231260827
Sole Shareholder: Nikora ZS
11.Roial Kaspia ShPS
Merab Kavtaradze Street 11
Tbilisi 0180
Est.: 8 February 2008
ID Code : 200255721
12.Nikora-Kakheti ShPS
Kisiskhevi
Telavi District
Est.: 3 October 2006
ID code: 231278131
Sole Shareholder: Nikora ZS
13.Iberti ShPS
14.Partniori ShPS
Est.: 2 December 2014
ID code: 400132192
15.Nikora ShPS
Est.: December 2014
ID code: 400132183
ACTIVITIES
The Company is involved in the following activities :
Operators of 215 supermarkets styled “Nikora”, “Nugeshi”, “Libre” and
“Sunday”.
NACE Code: 4778
Imports from Italy, Spain, France, Turkey, Bulgaria, Belgium, Germany,
China, Russia, Ukraine, Poland, Czech Republic, Pakistan, the Netherlands,
Lithuania and Romania.
Subject does not export, all sales are domestic.
FACILITIES
The Company has the following facilities :
Rented premises comprising administrative offices located at the heading
address as well as 215 supermarkets located throughout Georgia (see 'Branch
Offices' below).
REGISTERED OFFICE
M.Kavtaradze Street 11
Nadzaladevi District
Tbilisi 0180
BRANCH OFFICES
1. Libre
D. Aghmashenebeli Alley 1.6 km
Vake-Saburtalo District
Tbilisi 0131
2. Market Nugeshi
Zghvis Ubani (Temka) III m/d, V
Q. Plot
Gldani-Nadzaladevi District
Tbilisi 0197
3. Market Nugeshi
Kipshidze Street 2
Vake-Saburtalo District
Tbilisi 0162
4. Market Nugeshi
B. Khmelnitsky Street 48
Isani-Samgori District
Tbilisi 0113
5. Market Nugeshi
S. Chikovani Street 37
Vake-Saburtalo District
Tbilisi 0171
6. Market Nugeshi
Paliashvili Street 10
Vake-Saburtalo District
Tbilisi 0179
7. Market Nugeshi
Zestaponi Street 18
Didube-Chugureti District
Tbilisi 0180
8. Market Nugeshi
Griboedov Street 6b
Batumi 6000
9. Market Nugeshi
Tbilisi Square 1/3
Batumi 6000
10.Market Nugeshi
Marjanishvili Street 2
Batumi 6000
SPECIAL NOTE
You enquired on: JSC NIKORA TRADE. Please note that the correct name is
as per heading.
The address which you provided: NADZALADEVI DISTRICT, KAVTARADZE 11,
TBILISI GRUZJA applies to subject's registered office address. Please note that
subject's administrative office address is as per heading.
Interviewed: Temur Aleksandria (Financial Director).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.72 |
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1 |
INR 88.64 |
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Euro |
1 |
INR 78.14 |
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GEL |
1 |
INR 25.10 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRI |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low risk
of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably on
secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the business
is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.