Page 28 - RusRPTOct19

4.3.2 Corporate profits dynamics
Russia’s companies had another good month earning just over RUB1 trillion in July, which is slightly down on the RUB1.2 trillion or more they have been earning each month all year. It was also down on the RUB1.2 trillion Russian companies earned in July a year earlier, but well up on the RUB623bn from 2017 and RUB422bn in 2016. The recovery is underway, but it is now a stable recovery and not accelerating.
In cumulative terms the recover is much easier to see. Russian companies have earned a total of RUB9.1 trillion this year and that is clearly up from last year’s RUB7.6 trillion and almost double the result from the two previous years.
In percentage terms the earnings in July were up by 20% on a cumulative basis year-on-year which was a slower pace than in previous months where a 20% gain was the least gained, but the m/m cumulate percentage gains only started going over 20% in the second half of last year when the recovery really began to kick in.
The banking sector has a similar story where the recovery in profits kicked in the second half of last year and has been steadily improving since then.
The combined revenues of Russia’s top 500 companies on and RBC list rose in 2018 to RUB85.5 trillion ($1.3 trillion), up 18.2% compared with the previous year. In GDP terms, the RBC 500 accounted for 82.3% of the total, up from 78.5% in 2018. Five years ago, the companies accounted for 70.9% of Russian GDP.
While 434 of the 500 companies expanded in 2018, the largest companies continued to experience a faster rate of growth than their smaller counterparts. The 20 largest companies accounted for more than half of the total revenues.
28 RUSSIA Country Report October 2019 ww.intellinews.com