Corporate profitability will decline

Corporate profitability will decline

An analysis by the Polish Economic Institute (PIE) shows that corporate profitability may deteriorate in the second half of the year.

PIE analysts also expect the financial performance of companies to deteriorate. This will be influenced by the weak economy and problems in the energy market.

At the same time, large companies are currently the most active. Their revenues in the first half of the year were 33,2 percent higher than a year ago. However, it should be taken into account that the result was largely influenced by price increases. However, costs grew even faster – by as much as 33,4 percent. As a result, net profit will decline.

Currently, the highest profitability rate is in mining. In contrast, the worst situation in this regard is in the trade and motor vehicle repair sectors.



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