Content |
Main article: Russian economy
Billionaires
Number of companies and bankruptcies in Russia
Privatization in Russia
Small and medium-sized businesses
Franchizing
History
2024: Reduction in profit of Russian business for 9 months by 18% to 21 trillion rubles
Rosstat calculated the financial result of Russian companies (non-financial sector excluding banks and small businesses).
Net profit in September 2024 amounted to 1.34 trillion rubles, having decreased by 3.5 times compared to Sen.23, but the monthly comparison is not indicative due to high volatility.
For 3q24, profit amounted to 7.46 trillion against 11.3 trillion for 3q23 and here the negative dynamics (-33% YoY) is more clearly manifested.
For 9m24, profit amounted to 21.4 trillion, which is 18% lower than last year's result (9m23), for three years + 9.2% (9m24 to 9m21) and 82.8% higher than the result for 9m19, but this is at par.
The negative dynamics of net profit (an increase in production costs, not a slowdown in demand) in 2024 is offset by a very high accumulated base in 2021. The results are relatively weak, but critical stalling, as in 2009 does not happen, Spydell Finance wrote.
By key sectors of the economy:
- Mining for 9m24 - 4.96 trillion rubles, which is 1.5% lower than 9m23, + 3.1% in three years and + 63.3% in 5 years.
- Manufacturing production for 9m24 - 6.74 trillion and this is 7% lower than 9m23, + 8.4% to 9m21 and exactly twice the result for 9m19.
- Electricity and heat - 0.83 trillion with a significant almost two-fold (48.1%) reduction compared to last year, but + 20.1% in three years and + 49.2% in 5 years.
- Construction - 0.43 trillion and a reduction of 10.1% YoY, but 3.2 times (+ 219%) higher than profit for 9m21 and 8 times (+ 698%) higher than profit for 9m19. They often talk about the vulnerability of the construction sector in the context of rising rates, but Rosstat does not identify problems - profits are huge and there is no tendency to cut yet.
- Transportation and storage - 1.55 trillion with an increase of only 1.8% YoY, + 90.2% over three years and + 64.4% over 5 years.
Apparently, high profits (by historical standards) determine the high credit stability of the business (there is no increase in delinquencies and no defaults and bankruptcies).
2023
Growth of profits of Russian companies by 23% and up to 38.2 trillion rubles
In early July 2024, the Federal Tax Service of Russia (FTS) published data on the financial results of the activities of Russian companies for 2023. According to the information provided, the total profit of organizations increased by 23% compared to the previous year and reached 38.2 trillion rubles.
According to Izvestia, profit growth was observed despite the general decrease in the income of enterprises. In 2023, company revenues decreased by 36% and amounted to 814 trillion rubles.
According to the Associate Professor of the Department of State and Municipal Finance of the PRUE. G.V. Plekhanov Ravil Akhmadeev, profit growth was mainly observed in the domestic sectors of the economy, which to a lesser extent affected the sanctions. Such industries include construction, information technology and communications, real estate operations, catering and hospitality.
The increase in profits with lower revenues indicates the successful adaptation of many companies to new economic conditions. Enterprises were able to optimize costs and reconfigure export-import flows, which made it possible to improve financial results.
In 2023, Russian companies paid 7.9 trillion rubles in income tax. From 2025, it is planned to increase the corporate income tax rate from 20% to 25%. At the same time, the system of deductions for investing, including in scientific developments, will be improved.
Experts of the Federal Tax Service predict that in 2024 the dynamics of profit growth of Russian companies may accelerate. This will be facilitated by a complete restructuring of trade and logistics chains, as well as an increase in trade with the SCO and BRICS countries. However, the long-term impact of sanctions will continue to affect the economic situation, which will require organizations to further optimize costs and find new ways to increase profitability.[1]
Average profit growth by 1.5 times
According to a study by the Aktion Accounting service, published in mid-May 2024, in 2023 there was a significant increase in the average profit of Russian business by ‒ 1.5 times compared to 2022. The analysis was based on the reporting of 2 million representatives of large, medium and small enterprises in various sectors of the economy. The leader in profit growth was the film and video production sector, where the increase was 1900%. In 2022, this industry demonstrated a total loss of 1.6 billion rubles, while in 2023 a profit was recorded at 28.5 billion rubles.
According to the observations of the owner of the Lumen cinema network Pavel Ponikarovsky, the rapid growth of the film and video industry is directly related to an increase in state investment in the production of domestic content after the departure of foreign players in connection with a special military operation in Ukraine:
 | The number of films is growing, and they show high box office receipts. However, at the moment, there are still gaps in the repertoire grid of cinemas. |  |
The study "Action of Accounting" also revealed a significant increase in profits for 2023 in such areas as telecommunications (501%), catering (281%), television and radio broadcasting (212%), architecture and design (182%), information technology (165%). Analysts note that the best dynamics is characteristic of industries focused on servicing individuals, which is explained by the stabilization of consumer incomes and their willingness to spend funds. The increase in profits in the IT industry is associated with tax incentives in force since 2021.
At the same time, Vladimir Bessonov, head of the department of the HSE Development Center Institute, characterizes the recorded growth as "unnaturally high," which, in his opinion, is caused by a comparison with the crisis year 2022, when the profit of enterprises could be extremely low or completely absent.[2]
Incomes of Russians from entrepreneurship increased by a third to 6 trillion rubles
In 2023, Russians received income from entrepreneurship in the amount of approximately 6 trillion rubles. This is a third, or 1.5 trillion rubles more than in 2022. Such data in early March 2024 was published by the Federal State Statistics Service (Rosstat).
According to RBC, referring to the calculations of Svetlana Misikhina, Deputy Director of the HSE Development Center, the growth of Russians' income from entrepreneurship in real terms (adjusted for inflation) in 2023 amounted to almost 25% compared to the previous year. The share of business income in the total cash income of the population of the Russian Federation in 2023 reached 6.8%, which is the maximum figure since 2014, when a value of about 7% was recorded. For comparison: in 2022 and 2021, this value was estimated at 5.7%.
In total, in 2023, the amount of cash income of Russians amounted to 88.3 trillion rubles. In terms of the structure of financial revenues, wages are in the first place with a share of about 59% - this is a record high value since 2013. In 2022, this figure was 57.5%. At the same time, in 2023, real wages in Russia increased by 7.8%, which corresponds to the maximum increase in five years (by the specified year). In second place in the structure of income of Russians are social payments with a share of about 19.5% in 2023. Other revenues account for 10.3%.
The study also looks at the structure of population expenditure. In 2023, Russian spending on savings increased by 31.7% (nominally) compared to the previous year: from 4.6 trillion to 6 trillion rubles. Savings take into account investments in securities, deposits, the purchase of real estate, the amount of cash in the hands of the population. At the same time, residents of the Russian Federation spend the most on the purchase of goods and services - 69.5 trillion rubles. Year-on-year growth was recorded at 11.3% in nominal terms.[3]
Growth of the balanced profit of Russian enterprises by 35.2% to 33.31 trillion rubles
The balanced profit (profit minus loss) of Russian enterprises (without small businesses, credit institutions, state (municipal) institutions, non-bank financial organizations) in 2023 reached 33.31 trillion rubles, which is 35.2% more than a year ago. Such data on March 6, 2024 was cited by Rosstat.
As Interfax notes with reference to the department's materials, in 2022, the net profit of companies in the Russian Federation decreased by 12.6% and was measured at 25.93 trillion rubles. In 2023, the largest indicator was recorded in the field of mining: 6.38 trillion rubles, which is 16.6% more than in 2022. The net profit in the oil and natural gas production sector rose by 16.9%, to 4.75 trillion rubles. In the field of coal mining, profit more than halved (by 53.8%) - to 374.7 billion rubles.
According to Rosstat, the share of unprofitable organizations in Russia in 2023 decreased to 24.7% from 26.1% in 2022. The share of profitable organizations, respectively, increased to 75.3% against 73.9% a year earlier.
In the manufacturing industry of Russia, the net profit for 2023 amounted to 9.55 trillion rubles, which is 5% more than in 2022. In the field of providing electricity, gas and steam, air conditioning, the balanced profit amounted to 1.67 trillion rubles (an increase of more than twice). In wholesale and retail trade, the balanced profit rose by 14.1% and turned out to be at the level of 5.13 trillion rubles
In agriculture, the balanced profit in 2023 turned out to be equal to 728.9 billion rubles, increased by 7.1% on an annualized basis. In construction, the figure reached 835 billion rubles (an increase of 1.79 times), in the field of transportation and storage - 2.08 trillion rubles. (1.55-fold increase).[4]
2022
70% of companies increased annual revenue
About 70% of companies in Russia in 2022 increased revenue in comparison with 2021. Such data in June 2023 were cited by analysts of the Aktion Finance service after studying the results of 195 thousand companies with revenues of more than 120 million rubles.
According to the report, about 30% of companies operating in the Russian market increased revenue in 2022 by at least 50%. In the catering and hotel business, 86% of companies increased their revenue, including one in three - one and a half times. In the field of culture, growth was noted in 83% of companies, in the field of education - in 8%, in the field of construction - in 77%, while more than half of companies recorded revenue growth by 50%.
Only a third of companies operating in the market ended 2022 with a drop in revenue. Denis Raksha, an expert at the Aktion Finance service, suggests that these include companies that temporarily suspended work in 2022 in connection with the Russian military special operation in Ukraine and the sanctions that followed it. The list could also include those who worked with businesses that left the Russian market in 2022.
9% of companies on the market received a loss in 2022. One in three companies recorded a drop in profits, including 14% reporting a decline of more than 50%.
60% of Russian companies increased profits, including every second reported an increase in the indicator of one and a half or more times. Experts consider such an increase abnormal and arose against the background of a general increase in the cost of goods, as well as the provision of state support.
| | We will no longer see such a high rate of profit from such a large number of companies, - Denis Raksha is sure.[5] | |
Reduction in the profit of enterprises by 12.6% to 25.93 trillion rubles amid the conflict in Ukraine
Russian enterprises in 2022 earned 12.6% less profit than a year earlier: in the sanctions year, enterprises earned 25.93 trillion rubles, in 2021 - 29.66 trillion rubles. The best dynamics were shown by companies in construction and railway freight transportation, the worst - in fishing and wholesale trade. The fall was not as strong as in the pandemic 2020 - then the business earned 23.5% less than the result of 2019.
2018: Biggest entrepreneurs and asset managers
Notes
- ↑ Money time: profits of Russian companies rose by a quarter
- ↑ The average profit of Russian business increased by one and a half times in 2023
- ↑ Russian income from entrepreneurship has reached a record since 2014
- ↑ The balanced profit of enterprises of the Russian Federation in 2023 increased by 35.2%
- ↑ Every third company in Russia increased revenue by 50% in 2022
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |