Gross profit of Croatian entrepreneurs in nine months 15.7 billion kuna

Croatian entrepreneurs achieved a total revenue of 425.8 billion kuna in the first nine months of this year, while their total expenses amounted to 410.1 billion kuna, resulting in a gross profit (excess of revenue over expenses) of 15.7 billion kuna, according to data from the Financial Agency (Fina).

A comparison with the same period last year shows that total revenues of entrepreneurs in the first nine months of this year decreased by 5 percent, total expenses were reduced by 3.9 percent, while gross profit decreased by 26.5 percent. From sales in the domestic market, Croatian entrepreneurs generated 322.6 billion kuna in revenue in the first nine months of this year, which is a decline of 7.5 percent compared to the same period last year. Encouragingly, there was an increase in exports and a growth in revenue from sales in foreign markets by 6.4 percent, reaching 61.5 billion kuna, Fina emphasizes. Data for the first nine months of this year indicate that business efficiency has deteriorated, as for every 100 kuna of total expenses in the first nine months of this year, 103.84 kuna in revenue was generated, while in the same period last year it was 105.02 kuna. The number of employees (based on hours worked) among Croatian entrepreneurs subject to profit tax decreased by 3.1 percent, and average net salaries also decreased.

According to Fina’s data, at the end of September this year, entrepreneurs had 856,348 employees (based on hours worked), which is 27,777 fewer employees than at the same time last year. Employees of profit tax liable entrepreneurs received an average monthly net salary of 4,542 kuna, which is nominally 30 kuna or 0.7 percent less. Data for the first nine months of this year show that the number of entrepreneurs increased by 3 percent on an annual basis, and at the end of September 2010, there were 90,038. Of that number, just over half, 53.8 percent or 48,411 entrepreneurs, operated with gross profit (excess of revenue over expenses) in the first nine months of this year, while 41,627 or 46.2 percent reported a gross loss. These data indicate that, compared to previous periods, the number of entrepreneurs who were unable to operate successfully and generate higher revenues than expenses under challenging business conditions has increased, Fina notes, adding that on average, every third entrepreneur has operated at a loss over the past ten years. In conditions of reduced economic activity, entrepreneurs reduced investments in fixed assets by 30.5 percent, spending 29.1 billion kuna for this purpose in the first nine months of this year, Fina reports. (H)