Non-financial companies saw their pre-tax gross profit rise to 91.1 billion euros in the first quarter of 2024. This represents an increase of 1.3 billion euros compared to the same period in 2023. In the four preceding quarters, profits had consistently declined compared to the previous year. The profit increase in the first quarter of 2024 is mainly due to higher other profit, according to provisional figures from CBS.
Pre-tax gross profit can be broken down into operating profit, profits from foreign subsidiaries, and other profit.
Operating profit
Operating profit, including non-product-related subsidies, amounted to 69.3 billion euros in the first quarter of 2024, which is 0.4 billion euros less than in the same period of 2023. The decline in operating profit was particularly evident in energy companies, the automotive industry, and the petroleum industry. In contrast, the food and chemical industries recorded higher profits.
Profits from foreign subsidiaries and other profit
Profits from foreign subsidiaries rose by 0.3 billion euros compared to the first quarter of 2023. Other profit increased by 1.4 billion euros due to higher domestic dividend income and a less negative interest balance.
Tax, investments, and dividends
In the first quarter of 2024, non-financial companies paid 3.6 billion euros less in tax than in the same period of 2023. Despite the higher after-tax profit, investments in fixed assets fell by 81 million euros. However, 1.7 billion euros more in dividends was distributed to shareholders compared to the first quarter of 2023.
Profit share
The profit share, operating profit as a percentage of value added, fell to 44.0 percent in the first quarter of 2024, compared to 45.8 percent in the same period of 2023. This decline is partly attributable to higher labour costs.
Overview of the pre-tax gross profit of non-financial companies:
- 2020: Operating profit excluding subsidies: 45.4 billion euros, Subsidies: 2.2 billion euros, Profits from foreign subsidiaries: 14.5 billion euros, Other profit: 2.2 billion euros
- 2021: Operating profit excluding subsidies: 45.1 billion euros, Subsidies: 6.9 billion euros, Profits from foreign subsidiaries: 20.5 billion euros, Other profit: 2.4 billion euros
- 2022: Operating profit excluding subsidies: 58 billion euros, Subsidies: 4.4 billion euros, Profits from foreign subsidiaries: 30.2 billion euros, Other profit: 5.1 billion euros
- 2023: Operating profit excluding subsidies: 67 billion euros, Subsidies: 2.7 billion euros, Profits from foreign subsidiaries: 17.9 billion euros, Other profit: 2.2 billion euros
- 2024: Operating profit excluding subsidies: 66.6 billion euros, Subsidies: 2.7 billion euros, Profits from foreign subsidiaries: 18.2 billion euros, Other profit: 3.6 billion euros