Press Release: Total profits of companies made a huge leap
The “Financial indicators of Estonian companies in 2016” survey conducted by Creditinfo Eesti AS reveals that the total profit of companies in Estonia rose sharply by 14.7 percent over the year, reaching 5.1 billion euros. Profit was generated in all sectors and counties. There was also significant growth in sales revenue.
As annual reports have been submitted and late submitters have also been included, it can now be said for certain that in 2016 the economic environment exited the period of stagnation and began growing again.
The number of companies earning a profit increased from 79,037 to 81,740 companies (growth of 3.4%). Profit was generated across all sectors and in all counties. The share of profit in turnover increased by 9.3% on average. Last year profit increased the most in the mining industry (343%), professional, research and technical activities (156%) and the electricity sector (56%).
In 2016, there was also significant growth of 3.4% in the common sales revenue of all companies, reaching 54.1 billion euros. Sales volumes increased the most in the accommodation and catering sector (10%) and in the health and social welfare sector (9.5%).
The sum of losses of companies operating at a loss in 2016 decreased by 16% and stopped at the level of 1.3 billion euros (in 2015, the same indicator increased by 14%). The number of companies (a total of 39,872 companies) that ended the year at a loss also reduced by 1.8%.
The purpose of the “Financial indicators of Estonian companies in 2016” survey was to determine the total financial indicators of all companies in Estonia. The survey is conducted at the end of a year, when the actual financial results of late submitters of annual reports (almost 30% of the companies) can also be taken into account. Any earlier summaries can only rely on forecasts. The survey sample consists of the data from the 2016 annual reports of 133,351 Estonian companies (the financial results of credit institutions and insurers have also been taken into account, by relying on the data of the Bank of Estonia and the Estonian Financial Supervision Authority).
You can examine the data broken down into areas of activity and the TOP10 companies in terms of turnover and profit broken down by different counties on the website of Creditinfo
Creditinfo Eesti AS (formerly known as Krediidiinfo AS) is the largest and most experienced company in the Estonian credit information sector, the principal activity of which is the management of the financial risks of companies. Creditinfo regularly prepares surveys of bankruptcies, financial results, payment behaviour and credit policy of companies, on the basis of which new tendencies and trends are forecast.
Alar Jäger, Development Director, Creditinfo Eesti AS
Tel.: 665 9643