These days, data on the operations of the largest Croatian companies in 2021 is being published. It is known that Ina achieved the highest revenue, while PPD is close behind. It is also known who the largest exporter and importer is, who achieved the highest profit, and the largest loss.
However, Lider is publishing the interactive table 1000 largest again this year, from which you can find out who had the highest revenue growth and who had the largest decline, you can observe the rise or fall of profits and losses, rank companies by the number of employees or by average salaries. You can also find out how many companies on the list are from your city and county, and everything about their operations…
This year, Lider’s publication ‘1000 largest’ – the most accurate and relevant overview of the previous business year – has returned to its usual timing, before summer. In the past two years, due to the pandemic and the earthquake, the government extended the deadline for submitting annual financial reports by two months, until June 30. This year we returned to ‘normal’, reports were submitted to the Financial Agency by the end of April, and we hope that this deadline will remain in effect in the coming years.
Croatian companies faced numerous challenges
This year’s edition also feels the sinusoidal effect of delays in the phase. It all started in 2020, when, in the midst of the pandemic, after a total lockdown and the devastating Zagreb earthquake, the results of the best business year until then, 2019, were published amid the greatest pessimism. The following year, the propulsive 2021, we published catastrophic results from 2020. Now you have before you a publication that records the operations from last year, the best in history, but the accounts of business successes are being settled in a time of total uncertainty.
The Russian invasion of Ukraine not only disrupted business flows with both countries but also caused a global, or at least European, energy crisis and skyrocketing energy prices. The state is trying to keep oil derivatives under control, but with as few of its concessions on taxes and excise duties as possible.
It controls (for now) the prices of gas and electricity for households, but the business sector has been left in an energy whirlwind with monthly bill increases of up to three hundred percent. This must be added to the rise in raw material prices, difficulties in supply chains due to unpredictable shipping routes from the Far East, and an acute chip shortage. All this has turned creeping inflation in May into galloping inflation (over ten percent).
In such circumstances, we view last year’s excellent results with reservation. GDP grew by a record 10.4 percent last year, more than it fell the previous year (8.4 percent), so we welcomed the end of 2021 with a GDP 1.2 percent higher than it was in 2019. This growth was enabled by entrepreneurs, who increased their companies’ revenues by 19 percent. In line with this, the 1000 largest operated, who did not outperform the rest of the economy last year, but at least did not lose to it.
Huge revenues were achieved last year
Thus, the 1000 largest more than compensated for the pandemic decline of seven percent in 2020 and achieved record revenues of almost 535 million kuna. Meanwhile, the largest strengthened their positive foreign trade balance. Exports increased by 38 percent, significantly more than imports, which grew by 16 percent, resulting in a record ten billion kuna more in exports than imports.
The biggest winners last year were certainly the oil and gas sector and hoteliers, but both are somewhat unbacked. Oil and gas companies benefited from last year’s fuel price increase of almost 50 percent. Hoteliers returned after the pandemic in 2020 – from 11 returnees, 24 managed to place themselves among the 1000 largest. However, this is still significantly less than the golden tourist year of 2019.
We are publishing data in euros
The uniqueness of this year’s ‘1000 largest’ is that we are publishing business data, in addition to the usual kuna, in euros simultaneously. This prepares us for entry into the eurozone. From January 1, 2023, not only the prices of bread, milk, coffee, meat, clothing, and energy will be expressed in euros, but also the revenues and expenses of companies. We will publish the business results next year in euros.
Until then, we will need to get used to the new currency and new business ratios. For example, on this list, there are even 101 billionaires. Namely, that many companies reported more than one billion kuna in revenue in 2021. When calculated in euros, the list of billionaires has been reduced to ‘four letters’: Ina, PPD, Konzum plus, and HEP. So, if this is the most exclusive society, perhaps the new ’round’ threshold is one hundred million euros in revenue, which 142 companies reached last year.
And the transition to the euro will be all the more challenging as it will likely occur amid inflation, which will allow for speculation and further price increases despite the good provision (during low inflation) for the parallel printing of prices in kuna and euros from September. Thus, the Croatian path to the euro will also be paved with good intentions.
