Entrepreneurs from the private sector with 23.7 percent less net profit compared to last year

Entrepreneurs from the private sector achieved a net profit of 20.2 billion kuna in 2020, which is a decrease of 23.7 percent compared to the previous year, according to an analysis by the Financial Agency (Fina).

Entrepreneurs from the private sector, numbering 137,227, employed 798,960 workers last year and generated total revenues of 640.5 billion kuna, with a period profit of 40.2 billion kuna, a period loss of more than 20 billion kuna, and a net profit of 20.2 billion kuna. Private sector entrepreneurs thus increased the number of employees by 0.6 percent compared to 2019, reduced total revenues by 3.8 percent, period profit by 1.3 percent, while their period loss increased by 40.3 percent, resulting in a consolidated financial result with a net profit lower by 23.7 percent compared to the previous year, as stated in Fina’s analysis.

The private sector played the most significant role in the business operations of entrepreneurs in 2020, participating with 98.7 percent in the number of entrepreneurs, 84.3 percent in the number of employees, 86.1 percent in total revenues, 87.6 percent in period profit, 80.2 percent in period loss, 51.1 percent in investments, and achieving 96.4 percent of the total net profit of entrepreneurs in Croatia. Employees of private sector entrepreneurs, in 2020, as in previous years, were calculated lower average monthly net salaries than the economy average, amounting to 5,747 kuna, which is 3.7 percent less than the average of all entrepreneurs in Croatia, which for 2020 amounts to 5,971 kuna.

Net profit of state-owned entrepreneurs nearly 1.8 billion kuna; those in mixed ownership with a net loss of one billion kuna

State-owned entrepreneurs, numbering 932, reported from Fina, achieved a positive consolidated result of nearly 1.8 billion kuna, which is a decrease of 35.2 percent compared to the net profit of the previous year. Among state-owned entrepreneurs, there were 99,147 employees who generated total revenues of 54.7 billion kuna, nearly three billion kuna in period profit, and more than 1.2 billion kuna in period loss. State-owned sector entrepreneurs, compared to 2019, thus reduced the number of employees by 1.7 percent, total revenues by 8.3 percent, period profit by 15.2 percent, while increasing period loss by 53.2 percent.

In any case, employees in the state sector were calculated an average monthly net salary which in 2020 amounted to 7,137 kuna, which is 19.5 percent more than the average of all entrepreneurs at the level of Croatia.

Fina’s analysis also shows that mixed ownership entrepreneurs, numbering 360, in 2020 had 48,403 employees, and generated total revenues of 47.4 billion kuna, with a period profit of more than 2.6 billion kuna, and a period loss of 3.7 billion kuna.

Compared to 2019, the number of employees decreased by 10.2 percent, total revenues by 19.4 percent, total expenses by 13.1 percent, period profit by 28.8 percent, while period loss increased nearly four times, resulting in a negative financial result, a net loss of one billion kuna, compared to the previous year when a net profit of 2.7 billion kuna was achieved.

Fina also published a list of the ten entrepreneurs with the highest period loss in 2020, led by Fortenova grupa with 1.3 billion kuna. The second highest period loss, of 932.8 million kuna, is INA – Industrija nafte, and third is Mercator-H with a period loss of 550 million kuna. This is followed by Ante gradnja with 491.8 million kuna, national airline Croatia Airlines with 358.2 million kuna, Valamar Riviera with 308.5 million kuna, Crosco oil services with 303.1 million kuna, Konzum plus with 253.5 million kuna, Mejaši prvi with 240 million kuna, and the list concludes with Allegheny Financial, with a period loss in 2020 of 231.3 million kuna.

The period loss of the top 10 entrepreneurs, who reported the highest loss in 2020, amounted to 4.98 billion kuna, which is 19.9 percent of the total 24.95 billion kuna period loss of 56,266 entrepreneurs in Croatia who ended 2020 with a loss, as noted by Fina.

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