The Slovenia Times

Business results show Slovenian economy resilient

Production at Pivovarna Laško brewery. Photo: Bor Slana/STA

Slovenian businesses generated €6.7 billion in aggregate net profit in 2023, the highest figure yet, in what AJPES, the agency for public legal records, says testifies to the resilience of the Slovenian economy. Value added was also up, on flat revenue.

AJPES data show the aggregate net profit as the difference between the total profit made by profit-making companies and total loss made by loss-making companies rose by 10% in nominal terms and was 2% higher in real terms compared with 2022.

Flat in nominal terms, revenue dropped by 7% in real terms to €146.5 billion.

Net value added per employee rose by 9% in nominal terms and by 1% in real terms to €61,000, as the total net added value was up by 12% and 5%, respectively, to €33.42 billion.

Inflation had somewhat less impact on real values than in 2022 as average yearly inflation in 2023 amounted to 7.4%, while in 2022 it was at 8.8%.

Data from annual reports submitted by 71,638 companies, show the increase in net profit can be attributed to large and micro companies, while small and medium-sized enterprises posted a lower combined profit.

Results deemed surprisingly good

"We were positively surprised by the results," Martina Resnik, head of the statistics and information sector at AJPES, told reporters on 9 May as the figures were presented.

Results had also been surprising in the past few years, during the Covid-19 pandemic and the energy crisis, which shows the resilience of the economy, said Zdenka Kajdiž, acting director of AJPES.

Large enterprises generated €3.35 billion in net profit, up 19% in nominal terms from 2022. Net profit of medium enterprises dropped by 2% nominally to €1.59 billion and of small enterprises by 4% to €1.08 billion. Micro companies recorded a net profit of €689 million, up 29% from 2022.

Manufacturing accounts for most profit

The companies in the Central Slovenia region generated the most profit, followed by those in the Savinja and Podravje regions to the east. The Posavje region saw the highest growth as profit more than doubled.

Profit was lowest in the northern Koroška region, which took the brunt of the August 2023 floods.

The manufacturing sector posted the highest profit, at €2.01 billion, but the figure was down by 12% in nominal terms. Revenue stayed level at €42.1 billion, while net value added per employee rose by 5% to €59,441.

In retail net profit rose by 3% to €1.27 billion, while revenue dropped by 3% to €46.4 billion. Net value added per employee rose by 11% to €63,241.

Construction recorded the most robust growth in net profit, by 33% to €386 million. Revenue increased by 19% to €9 billion, while net value added per employee rose by 21% to €45,629.

After a net loss of nearly €200 million in 2022, the electricity, gas and steam supply sector recorded a net profit of €522 million in 2023. Revenue dropped by 12% to €12.8 billion. The sector recorded the highest net added value per employee at €188,318, up by 136%.

Revenue generated abroad drops

Companies posted €59.8 billion of total revenue in foreign markets, down by 6% from 2022. In the EU markets sales revenue fell by 5% to €45.3 billion, while in markets outside the EU it dropped by 10% to €14.4 billion.

The costs of goods and services were 3% lower than in 2022 with energy costs decreasing by 1% and wage costs increasing by 12%.

The average monthly salary was €2,218, up by 9% in nominal terms and by 1% in real terms. Companies employed 547,873 persons in 2023, up by 3% compared to 2022.

Sole proprietors posted €510.7 million in net income, up by 20% from 2022. Revenue rose by 11% to €6.5 billion, of which €742 million was made in foreign markets. Net added value per sole proprietor and their staff increased by 13% to €20,244.

In 2023 there were fewer companies with outstanding liabilities and the value of the liabilities also decreased compared to the year before. Most insolvent companies were in construction and retail industries. The number of insolvency proceedings also continued to decrease, dropping by 7% on 2022.


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