Page 66 - RusRPTSept22

4.3.2 Corporate profits dynamics
Aggregate net profits of Russian companies in 2Q22 jumped by 25% year on year, according to the latest data from RosStat statistics agency.
As reported by bne IntelliNews, Russia’s economy continues to do better than expected despite the sanctions for the military invasion of Ukraine, with industrial production falling only 0.5% y/y in July 2022.
Sberbank CIB analysts welcomed the “encouraging” gain in net profit in 2Q22 that came amid a 4% y/y GDP decline in the reporting quarter and exceeded the 16.9% annual inflation in the period.
Large and medium-sized companies (excluding the financial sector and government organisations) made RUB9.5 trillion in profit in 2Q22, out of which the manufacturing sector accounted for RUB3.4 trillion, soaring 44% y/y. Manufacturing performance is particularly notable to Sberbank CIB analysts, who reminded that the sector came under serious sanction pressure in 2Q22.
The second-largest net profit figure of RUB11.7 trillion was for the wholesale and retail trade, but still declining by 13% y/y, mostly due to the drop in car sales. The transportation and storage sector posted a RUB0.9 trillion net profit, soaring 2.7-fold y/y.
At the same time net profit declined notably in the extraction and TMT sectors,
66 RUSSIA Country Report September 2022 www.intellinews.com