FINANCIAL CONDITION AND CURRENT ISSUES IN THE STRATEGIC DEVELOPMENT OF ENTERPRISES IN THE BAKERY INDUSTRY

Abstract

The baking industry remains one of the key sectors of Ukraine’s food industry, as it supplies the population with essential goods and fulfils an important socio-economic function within the food security system. In the context of military operations, its operations are subject to high uncertainty, accompanied by increased financial risks, the loss of part of production capacity, disruption of logistics links, a decline in population and a reduction in effective demand. An additional negative impact is caused by rising costs of raw materials, energy, and labour, as well as a shortage of working capital and complications in settlements with retail chains. The aim of this study is to assess the current financial situation of Ukraine’s bakery enterprises in the context of the challenges posed by the war, and to identify strategic directions for strengthening their financial stability and helping them adapt to an unstable economic environment. The author’s contribution lies in a comprehensive analysis of the financial performance indicators of enterprises in the sector based on a combination of various methodological approaches, including ratio analysis, as well as in identifying key trends and imbalances in the structure of assets and liabilities, liquidity and financial stability. The scientific novelty lies in the systematisation of current issues relating to the strategic development of enterprises in the bakery sector under a wartime economy, as well as in establishing the interrelationship between changes in capital structure, liquidity levels and the financial stability of enterprises. The practical significance of the results lies in the possibility of using the proposed approaches and recommendations to improve the efficiency of enterprises, in particular through cost optimisation, the development of energy efficiency, product diversification, the improvement of logistics, and the introduction of budgeting and scenario planning. The main findings reflect a trend towards a reduction in the number of enterprises, primarily large and medium-sized ones, a decline in production capacity and a contraction of the domestic market. The financial condition of enterprises is characterised by low capitalisation, a predominance of short-term liabilities, insufficient liquidity and high dependence on borrowed funds. In these conditions, improving financial stability is linked to the need to enhance enterprises’ adaptability, introduce modern management tools and ensure systematic state support for the sector.