Controller’s performance analysis of the largest stone fruit producer in the Republic of Srpska (Bosnia and Herzegovina) in light of COVID-19 pandemic

Abstract

This paper explores the possibilities of applying and the benefits of controlling tools for performance analysis of agricultural companies in Bosnia and Herzegovina. In order to obtain a clearer picture of the dynamics of business performance, particularly in the conditions of the COVID-19 pandemic, a controller’s review of the largest stone fruit producer in Bosnia and Herzegovina has been conducted. The review covers three-year period (2020-2022) and includes the benchmarking of the observed company with the top three competitors in the country and the entire industry’s average. Performance analysis of the largest stone fruit producer in Bosnia and Herzegovina has shown that the COVID-19 pandemic had significantly adverse effects on its business performance. Compared to the beginning of the pandemic, there was a significant decrease in total revenue, net profit, market share; activity indicators also significantly declined, and consequently, profitability ratios as well. The case study presented in this paper illustrates that no matter how strong and dominant companies may be in the market, they are also at greater risk of losing out during times of crisis and uncertainty. This study confirmed the findings of other research and demonstrated that large firms adapt to changes with more difficulty than smaller ones and that Return on Assets (ROA) is an indicator that points to deeper structural issues that further reflect on other performance metrics. Additionally, by combining controlling tools and multiple financial indicators, the case study provides a practical example of how to detect the initial signs of a business crisis early on and understand the causes of poorer performance, as well as where to seek opportunities for improvement.