Profits of Croatian Companies Decline by 9.5%

Total Croatia News

ZAGREB, May 25, 2018 – Croatian enterprises generated a total consolidated net profit of 21.9 billion kuna in 2017, which is 9.5% less than in 2016, the Financial Agency (FINA) said on Friday.

The report covered 120,081 companies liable to profit tax, excluding banks, insurance companies and other financial institutions. Most of the companies within the ailing Agrokor food and retail conglomerate were not included either as only seven of the 34 companies had submitted their annual financial statements for 2017 to FINA for statistical and other purposes.

The 120,081 companies had 882,884 employees, an increase of 5.8% or 48,667 workers over 2016. They earned 678.4 billion kuna in total revenues, up 9.5% from the previous year, while at the same time their expenditures rose by 10.4% to 649.8 billion kuna.

The total profit for 2017 was 41.4 billion kuna, up 8.7% from 2016, while the total loss increased by as much as 40.6% to 19.5 billion kuna. “The increased losses led to a lower consolidated financial result – net profit by 9.5% compared to 2016,” FINA said.

By comparison, the consolidated financial result in 2016 was a net profit of 24.2 billion kuna.

Nearly 81,000 enterprises or 67.4% operated at a profit, while 39,134 or 32.6% reported a loss. The highest profit, of 1.4 billion kuna, was reported by the INA oil company.

Of the total 678.4 billion kuna in revenues, 137.8 billion kuna was generated from sales on foreign markets, an increase of 16.6% over 2016. A total of 18,532 companies (15.4%) sold their products and services on foreign markets, goods worth 117.8 billion kuna were purchased and the trade surplus amounted to 20 billion kuna, according to FINA.

Some 10.2% of the enterprises invested in fixed assets, their investments reaching 23.7 billion kuna, up 0.6% from the previous year.

Broken down by size, 89.6% or 107,635 were micro-businesses, 8.9% or 10,717 were small businesses, 1.2% or 1,400 were medium-sized businesses and 0.3% or 329 were large businesses.

All business groups ended 2017 with a profit – the net profit of micro-businesses was 1.1 billion kuna, that of small businesses was 5.2 billion kuna, while medium-sized and large businesses posted net profits of 5.5 billion kuna and 10 billion kuna respectively.


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