Profits Increase in 2015, but Salaries Fall; State Companies Recovering

Total Croatia News

It’s not a secret state owned companies are a better haven for employees

Although private entrepreneurs were responsible for nearly 73% of total consolidated profits of Croatian business in the last year, an analysis by the Financial Agency (FINA) shows that state owned companies made twice the profit per employee than their privately owned counterparts, reports on June 6, 2016.

Data shows a total of 106,569 entrepreneurs registered in Croatia last year, with 104,635 private, 850 state, 592 mixed and 492 cooperatively owned. Total profit in 2015 amounts to over 35,9 billion Kuna, with total losses at 18,7 billion Kuna, so the consolidated profit equals 17,14 billion Kuna.

The FINA analysis shows state owned companies made an average of 4,6 million Kuna profit, or 39,8 thousand per employee, while privately owned companies have an average of 119,3 thousand Kuna average or 18,7 thousand per employee, half as much as the state owned.

The FINA report accounts for the numbers as positive results by major state companies such as Hrvatska Elektroprivreda (HEP), HEP-Operator and HEP-Production totalling over 2,76 billion Kuna profit, but also large losses by private companies such as Agrokor, INA and ENI Croatia, totalling over 1,4 billion Kuna.

Bouncing back from losses in 2014 and listed in the recovering section for 2015 are companies such as Konstruktor Engineering (private), Croatian Post (state) as well as 3.Maj (mixed).

Employee numbers have increased in private companies by 4.2% to 667 thousand, while state companies have reduced employees by 2.4% to 99 thousand. Both categories saw decreased monthly salaries, with the private average being 4,685 Kuna and 6,352 Kuna in state.


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