Press release: Losses of companies have increased abruptly
Now, when all reports are submitted, the “Financial indicators of Estonian companies 2014” review of Krediidiinfo AS demonstrates that during the past year total losses of unprofitable businesses have increased by one third. At the same time the total growth of sales revenue remains modest.
During the past year the sum of losses of companies have increased by 34 percent and reached 1.3 billion euros. At the same time the number of companies that ended the year with loss have increased by just 6 percent reaching the total of 36,378.
Sales revenue of Estonian companies is slowing down already for three consecutive years, and in 2014 amounted to just 1.2 percent of the same period of the past year. The joint sales revenue of all businesses amounted to 52.5 billion euros. The most significant growth of sales revenue was observed in water supply, sewerage and waste handling sector (11.4%), real estate sector (10.6%) as well as agriculture, forestry and fishing sector (10.3%).
The amount of profits of businesses has increased in 2014 by ca. 6% and reached 5.8 billion euros. At the same time the number of profit-making companies increased by 3% during the year, having reached 72,604.
Sectors with the most rapid growth of profits included other service-related works (92%), applied, scientific and technical activities (50%) as well as information and communication sector (11%). Profits have decreased to the most degree in water supply, sewerage and waste handling sector (-50%) and in transportation and warehousing sector (-29%).
By fields of activity accommodation and catering sector was hit the hardest – the total profits of 16 million euros were replaced with the loss of 26 million euros. At the same time sales revenue in the sector increased by steady 7%.
The statistical sample comprised data from annual reports for 2014 submitted by 122,145 Estonian companies (including information presented by credit institutions and insurers as well as the Bank of Estonia and the Financial Supervision Authority).
Krediidiinfo AS is an international company specializing in credit information gathering, processing and intermediation, while focusing on decreasing financial risks of Estonian companies. Krediidiinfo is one of the companies of Experian group – the global provider of information services. In 2015 Forbes magazine named Experian one of the most innovative companies in the world.
Alar Jäger, Krediidiinfo AS CEO
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