Home / Knowledge / News / Association/Org / Enterprises' profitability is continuously decreasing

Enterprises' profitability is continuously decreasing

08
Sep '08
In the 2nd quarter of 2008 compared to the same quarter of the previous year, the profitability of enterprises decreased by a fifth.

In the 2nd quarter of 2008, enterprises' total profit was 11.5 billion kroons, which is nearly 3 billion kroons less than in the same period of the previous year. Production inputs appreciation, recession, thereof cautious consumers have contributed to the situation where on highly competitive market those who can more effectively restrain costs are in better position.

The profit in wholesale and retail trade decreased the most. Agriculture and education were in loss.

The net sales of enterprises totalled 170 billion kroons, which in current prices was 2% more than in the previous year. Retail and wholesale trade and manufacturing enterprises accounted for the biggest share in net sales, respectively 41% and 21% of the total volume.

The weak growth in net sales is mainly caused by the influence of retail and wholesale trade where the growth was very small — only 1%. The growth of the net sales was the biggest in agriculture and education enterprises, at the same time the costs also grew most in these activities.

Similarly to the growth of the net sales, the growth rate of enterprises' costs also slowed down, but still costs grew faster than net sales. The increase of costs was 4% in the 2nd quarter.

The costs grew most in agriculture and education activities. The labour costs increased 14% during the year. As a result the productivity of labour costs on the basis of value added decreased 12%.

Statistics Estonia


Must ReadView All

Pic: Shutterstock

Textiles | On 27th Jan 2021

UK factories concerned over shortage of materials, workers

Concerns of UK manufacturers regarding shortage of low-wage workers...

Pic: Shutterstock

Retail | On 27th Jan 2021

US holiday season hit by understaffing, high turnover

The versatility and resilience of retailers helped many stores...

Pic: Wikipedia/Sabyasachi

Fashion | On 27th Jan 2021

ABFRL acquires 51% stake in Sabyasachi brand

Aditya Birla Fashion and Retail Limited, India’s leading fashion...

Interviews View All

Priyanka, Studio Priyanka Rajiv

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Jim Desai, Blaiva Fabricaa

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Top executives, Textile industry

Top executives
Textile industry

Sustainable fashion is also ‘slow fashion’

Sandra Sequeira,

Sandra Sequeira

The JD Institute of Fashion Technology is the educational division of JD...

Anupam Chakrabarty,

Anupam Chakrabarty

Headquartered in Finland, Helsinki, Lindström Group is a textile rental...

Amol Bhagwati,

Amol Bhagwati

A textile finishing solution provider, Inspiron Engineering Private...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Sven Ghyselinck, Devan Chemical

Sven Ghyselinck
Devan Chemical

Headquartered in Belgium and with offices in the United Kingdom, Portugal...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


January 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search