Montenegrin Companies Made Profit of 5,79 Million Euros

By , 03 Jul 2018, 12:51 PM Business
The lowest profit achieved in the real estate business: CBCG Building The lowest profit achieved in the real estate business: CBCG Building Savo Prelevic

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July 3, 2018 - The Montenegrin economy ended 2016 with a net profit of 5.79 million euros, according to the latest data from the Central Bank of Montenegro (CBCG). This has stopped a negative trend in business that has been present since 2011. 

CBCG has this information based on the annual financial statements (GFIs) of the economy for 2016, which are presented in the annual report on the work of the supreme monetary institution for the last year. The analysis by CBCG showed that the Montenegrin economy's operating income in 2011 was 7.64 billion euros, which is 13 percent more than in 2015 (6.76 billion euros). Operating expenses amounted to 7.31 billion euros, or 12.2 percent more than in the previous year (6.52 billion euros).

"The business (gross) result was positive and amounted to EUR 321.75 million and increased by 36 percent compared to the previous year when it was EUR 236.56 million. Financial and other revenues amounted to EUR 290.28 million, while financial and other expenses amounted to EUR 560.42 million, so the result of the financial and other activities of the Montenegrin economy in 2016 was negative, i.e. a loss of 270, 13 million was shown, which is 28.6 percent less than the previous year (EUR 378.49 million)," stated the report of the supreme monetary institution.

The Sectoral Business Analysis of the Economy in 2016 shows that a positive net result was achieved in 12 out of total 19 sectors. Positive results and its growth are recorded in the manufacturing industry (EUR 16.59 million), electricity, gas, steam and air conditioning (EUR 16.32 million), wholesale and retail (EUR 41.85 million), arts, entertainment and recreation (EUR 5.60 million), mining of ore and stone (2.37 million)...Transport and storage sectors (EUR 2.97 million) and education (EUR 448.283) were also operating positively which had a loss in the previous year, as well as sectors of informatics and telecommunications (EUR 36.09 million), agriculture, forestry and fishing (EUR 1.80 million) and other service activities (EUR 1.93 million), where there was a decrease in the positive net result in relation to the previous year. 

Other sectors recorded a loss 

"The biggest losses, as well as their growth over the previous year, were recorded in the real estate sector (EUR 50.90 million), accommodation and catering services (EUR 39.83 million) and construction (EUR 13.35 million)," the CBCG report states. Significant loss reduction, compared to 2015, was recorded in the sector of professional, scientific and technical activities (EUR 8.74 million), water supply, wastewater management, waste management process and similar activities (EUR 1.32 million), health and social protection (EUR 917,463), and in particular in the financial sector where the loss amounted to EUR 8,50 million (EUR 192,66 million in the previous year).  

Companies improved the accuracy of reporting

The CBCG has processed, in total, 22,512 financial reports of business entities. The Accounting Act obliges taxpayers to submit annual financial reports to the Tax Administration in accordance with the international accounting standards and international financial reporting standards.

The processing of data from these statements showed that the accuracy of filling in the balance sheet positions was increased, but there was still a large number of financial statements with insufficiently precise balance sheet and registration data. Cumulative data on the level of Montenegro, the sector, area, branches and groups and other balance macro-aggregates for the year 2016 were obtained by analyzing the balance sheet data from the statement of total results (profit and loss statement) and statement of financial position (balance sheet). 

Text by Marija Mirjacic, on July 2nd, 2018, read more at Vijesti

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