ECONOMY

Corporate profits fell 86 percent in five years

corporate-profits-fell-86-percent-in-five-years

Greek companies’ pretax profits have posted a dramatic 86 percent decline over the last five years, according to a survey of 4,997 firms by Grant Thornton.

The profit slide for those companies added up to 5.3 billion euros in the period from 2009 to 2014, while their work forces shrank by 19 percent and their taxpaying capacity declined by 60 percent.

The results of the survey were presented on Tuesday at Grant Thornton’s annual international conference, which was hosted in Athens for the first time, in the presence of Grant Thornton International head Edward Nusbaum.

The analysis of the survey’s findings showed a major drop in the operating profits of the sampled companies by 32 percent or 4.8 billion euros, in their net assets by 2.6 billion euros, and in their net borrowing by 7.5 billion euros: Total borrowing declined from 44.7 billion euros in 2009 to 37.3 billion euros last year. This drop is due to pressure from the credit sector for the repayment of loan obligations, which has resulted in a fall in the realization of new investments.

The sectors with the highest debt burden are tourism, entertainment and information, fish farming, vehicle imports, food service etc.