Croatian businesses in 2018 earned more than HRK 28.3 billion in net profit, which is a significant improvement compared to the year before, when they incurred a net loss of close to HRK 3.1 billion, shows a report published by the Financial Agency (FINA) on Tuesday.

A total of 131,117 Croatian enterprises that are subject to profit taxation, not including banks, insurance companies and other financial institutions, in 2018 earned revenues in the amount of HRK 751.2 billion and their expenses totalled 715.4 billion. Compared to 2017, the total revenue was 8.6% higher while expenses were 4% higher.

A profit amounting to HRK 46.9 billion in total was earned by 88,824 businesses (68%) while 42,293 businesses (32%) incurred losses in the amount of HRK 18.7 billion in total.

Compared to 2017, the profit earned by businesses rose by 15.2% while the loss dropped by 57.4%, resulting in a net profit of more than HRK 28.2 billion. In 2017, a net loss of slightly below HRK 3.1 billion was incurred.

The highest revenue in 2018 was reported by the INA oil company, in the amount of HRK 18.4 billion, and INA also reported the highest profit, of HRK 1.3 billion.

The Konzum retail chain had the highest number of employees, 9,419, a drop compared to 2017, when it employed 10,487 people.

Businesses employ close to 50,000 more people than in 2017

Croatian businesses in 2018 employed 939,954 workers, which is 48,428 workers or 5.2% more than in 2017.

Most of the businesses, close to 29,000, operated in the commerce sector, and they earned the highest revenue, of HRK 251.2 billion, while businesses in the manufacturing sector employed the most workers, more than 241,000, an increase of 2.4% from 2017.

The average monthly net wage in 2018 was HRK 5,584, 4.1% more than in 2017, when it amounted to HRK 5,366.

Broken down by size, most businesses were micro businesses – 117,943 or 90%, followed by small businesses, 11,317 or 8.6%, medium businesses, 1,498 or 1.1%, and large businesses, 359 or 0.3%.

All groups of businesses ended the year 2018 with a profit. The net profit of micro businesses was slightly more than two billion kuna, small businesses earned HRK 6.6 billion in profit, medium businesses earned 7.8 billion, and large businesses 11.8 billion.

Exports grow by 8.6%

A total of 19,594 Croatian businesses exported their products in 2018, and foreign sales accounted for HRK 147.2 billion of total revenue, an increase in exports of 8.6% from 2017.

In the same period, HRK 132.4 billion worth of commodities was bought on foreign markets, with the trade surplus totalling HRK 14.8 billion.

(EUR 1 = HRK 7.416)