BRA: Last Year’s Profit of Serbian Economy RSD 926.7 Billion, Increase by 44.7% – Zijin Mining Most Profitable on TOP HUNDRED… Companies List

The net profit of the economy increased last year by 44.7% and amounted to RSD 962.7 billion, whereas the net loss was reduced (3.6%) to an amount of close to RSD 276.1 billion, the Business Registers Agency (BRA) said in its Annual Report on the Economy’s Operations in 2021.

The total income of the economy was realized last year in the amount of RSD 14.77 billion, and the total expenditures amounted to 13.9 billion, a year-on-year increase by 20.4% and 18.5% respectively.

The report says that the operations of companies during 2021 was carried out in a favorable economic environment, which, along with the taken measures of economic policy, following the recession trends caused by the coronavirus pandemic, reflected on the increase of the number of employees and the growth of profitability, as well as the strengthening of financial capacities.

It is added that, last year, in Serbia, 106,219 companies employed 1,261,765 workers, and that number was higher by 34,312 compared to the previous year.

In 2021, companies recorded a growth of profitability, with a positive net result of RSD 686.6 billion, which is 81.1% higher compared to the previous year, and it was generated primarily thanks to the successful carrying out of the primary activities.

Observed by sectors, most of them operated successfully, except for two, which posted losses. All others posted positive net results.

The biggest overall gain was realized by companies in the following sectors: manufacturing industry (RSD 208 billion), wholesale and retail (RSD 170.7 billion), mining (RSD 79.7 billion), construction (RSD 58.4 billion) and information and communications (RSD 54.6 billion).

Negative net results were realized by the sectors of supply with electrical energy, gas, steam and air-conditioning (RSD 6.36 billion) and accommodation and catering services (RSD 889 million).

Public companies ended 2021 with a negative net result of RSD 7.35 billion, unlike the previous year, when they realized a profit, and companies in bankruptcy and liquidation also posted a loss – RSD 21.4 billion.

Companies on the lists “TOP HUNDRED… companies by operating income” and “TOP HUNDRED… companies by net profit” stand out as the main carriers of business activities and the overall profitability.

The hundred companies with the highest operating income realized 28.7% of the income on the level of the economy, whereas the hundred most profitable companies had a share of 39.3% in the total net profit of the economy.

At the same time, the TOP HUNDRED… companies by net loss posted over a half of the loss of the whole economy.

The most profitable company in 2021 was Zijin Mining Serbia, with a net profit of RSD 34.3 billion, which is nearly 13 times higher than last year’s profit. The high profitability of Zijin was generated by carrying out the primary activity, considering that, in 2021, the company started the production and sale of copper concentrate, after testing the terrain, which enabled it to realize a 37 times higher operating income, reaching around RSD 55 billion.

The company which placed second, observed by net profit, is MK Group, with a net profit of RSD 26.16 billion, nearly 10 times higher in year-on-year terms. In 2020, MK Group placed 22nd on this list.

Zijin Copper Bor advanced on the list of the most profitable companies by one position, placing third, with a realized net profit of RSD 23.77 billion, 2.8 times higher year-on-year.

The increased mining production of that company, along with the increase in the price of copper and precious metals in the world market, led to an intensive growth of operating income by 71.9%, which was realized in the amount of around RSD 121.4 billion, and the company is fourth on the list.

The increased demand for steel in 2021, along with the simultaneous increase in the prices of that product, caused HBIS Group Srbija to increase its production volume and more than double its operating income to RSD 130.58 billion, placing third. HBIS went from being the fifth-placed loser in the previous year to a profitable company with a net profit of RSD 23.7 billion, placing fourth.

Thanks to the recovery of the oil prices in the world markets and the revival of the economy, Naftna Industrija Srbije (NIS) realized an operating income that was 67% higher than last year, in the amount of around RSD 281 billion, placing second. That also led to the oil company’s return to the list of the most profitable companies in 2021, in fifth place, with a net profit of around RSD 23.1 billion.

Delhaize Srbija is fifth by operating income of around RSD 118.9 billion, up by 6.7% compared to the previous year. Although based on its business activities, it records a slight profit growth of around RSD 6.8 billion, that increase is compensated for by the loss in the financial sphere of business (RSD 208 million), so this retail chain realized a net profit lower by 24.4% than last year’s, in the amount of RSD 2.9 billion, placing 31st.

Among the companies with the highest operating incomes is also the PE Srbijagas, with an operating income of around RSD 116 billion. With an income a third higher than in the previous year, this public enterprise placed sixth. The net profit increased 26% and amounts to RSD 3.77 billion.

The biggest company in Serbia is at the same time the biggest loser, according to the report. The PE Elektroprivreda Srbije (EPS), is the leader when it comes to the operating income, but also first when it comes to the amount of net loss and the total loss. In 2021, it realized an operating income of around RSD 319.6 billion, which is 12.6% higher compared to last year and comprises 2.2% of the whole economy.

At the same time, due to the disturbances in the world market of energy and the production of electrical energy in the fourth quarter, the operating expenditures grew much faster (26.5%), which led, following a profit in the previous year, to posting an operating loss of around RSD 10.9 billion.

Unlike the previous year, when it was the most profitable, the PE EPS Beograd posted the biggest net loss, in the amount of RSD 14.9 billion, which participates with 5.4% in the total net loss of the economy. That means that the waving, to the Republic of Serbia, of the share in the capital of ODS EPS Distribucija Beograd, in line with the Decision of the Government of the Republic Serbia, also reflected to a considerable increase of the total loss (17.1%), so it amounts to RSD 225.6 billion and comprises 6.1% of the economy’s loss.

The lists of the TOP HUNDRED… companies in 2021 feature 19 public enterprises, of which 12 operated with a profit. Among them are four companies which belong among the most profitable companies, and seven public enterprises operated with a net loss, whereby five of them are on the list of the biggest losers. Of the hundred companies with the highest operating incomes, there are six public enterprises, and among those with the most valuable operating property and capital, there are 14. At the same time, eight public enterprises are present on the list of companies according to the total loss.

Of the public enterprises, along with the already mentioned Srbijagas, the biggest net profits were posted by the Post of Serbia, Belgrade Power Plants and PEU Resavica.

Aside from EPS, the biggest net losses were posted by the Roads of Serbia, Gradsko saobracajno preduzece, EPS JP Kosovo – Obilic and Elektromreza Pristina.

The Business Registers Agency has published “The Annual Report on the Operations of the Economy in 2021” and “The Report on the Top Hundred… Companies in 2021”, assembled based on the preliminary group processing of the data from the regular annual financial reports for 2021.

The annual report contains an analysis of the success of the operations and the financial position for 106,219 companies, as well as for 1,494 institutions and 113,370 enterprises.

In addition to an analysis of the overall economic trends, a special overview was provided from the aspect of the concentration of financial performances by sector and company size, and an analysis of the operations of certain segments of companies – public enterprises and companies in bankruptcy and liquidation.

The report of the top hundred… companies was prepared following an analysis and ranking of the data for 106,219 companies, considering the success of the business operations – list according to operating income and net profit, value of financial capacities – list according to business property and capital, as well as posted losses – list according to net loss and total loss, as announced on the government’s website.

A short overview of the overall operations of the economy and the top hundred… companies may be found here, whereas the “The Annual Report on the Operations of the Economy in 2021” and “The Report on the Top Hundred… Companies in 2021”, with the accompanying presentations, are published within the section Financial Reports – Publications/Annual Reports on the Operations of Legal Persons, Entrepreneurs and Economic Units and Financial Reports – Publications/TOP HUNDRED… Companies.

Agencija za privredne registre Beograd

NIS

Delhaize Srbija

Zijin mining Sebia

HBIS grupa Srbija

Zijin Copper Bor

MK Grupa

Srbijagas

Pošta Srbije

EPS

ODS EPS Distribucija Beograd

Beogradske elektrane

PEU Resavica

Putevi Srbije

Gradsko saobraćajno preduzeće

EPS Javno preduzeće TE Kosovo

PO Obilić

Elektromereža Priština

The Annual Report on the Operations of the Economy in 2021

The Report on the Top Hundred Companies in 2021

public enterprise with the highest net loss

most profitable companies

public enterprises with the biggest losses