20:58 25 May 2020
Net financial result of companies down by unprecedented 28.6%
As a result of deteriorating economic conditions, the net financial result of companies fell by 28.6 percent, which is an unprecedented scale, Dr Sonia Buchholtz from the Lewiatan Confederation said. She added that the current situation is not conducive to exports.
As reported by the Central Statistical Office on Monday, companies' revenues in Q1 this year increased by 4.3 percent y/y, but acquisition costs were 5.7 percent higher. Corporate investments increased by 4.3 percent, compared to an increase of 22.8 percent in the same period of 2019.
The expert emphasized that the percentage of profitable companies fell to 73.4 percent. (by 2.6 percentage points), just like the share of their revenues. A similar picture, she estimated, gives the net profitability index that was negative in some branches.
"The result below the line was recorded, among others, in hotel and gastronomy (-7.9 percent), administratively limited for two weeks in the first quarter and experiencing melting foreign demand in almost the entire quarter,” she said.
(PAP)
