Decreased Profits for Non-Financial Companies in the 1st Quarter of 2023 in the Netherlands

The pre-tax gross profits of non-financial companies in the Netherlands reached €77.7 billion in the first quarter of 2023, marking a €7.6 billion decrease compared to the same period in 2022. This decline is attributed to lower profits from foreign subsidiaries and other sources. These findings are based on the latest (preliminary) data released by the CBS.

The pre-tax gross profits can be divided into operational profits, profits from foreign subsidiaries, and other profits.

During the first quarter of 2023, operational profits amounted to €62.8 billion, representing a €5.1 billion increase compared to the first quarter of 2022. Excluding non-product-related subsidies, the operational profits were €6.8 billion higher. Energy companies, aviation, travel agencies, and construction installation companies notably recorded higher profits. However, the received non-product-related subsidies were €1.7 billion lower, primarily due to the discontinuation of COVID-19 subsidies.

Profits from foreign subsidiaries were €10.1 billion lower than in the first quarter of 2022 due to the absence of certain subsidiary companies. Other profits were negative, amounting to €2.6 billion lower than the previous year, mainly due to increased payments to the government related to gas extraction. On a positive note, domestic dividend returns were higher than in the first quarter of 2022.

Furthermore, companies pay taxes on their profits, such as corporate income tax. In the first quarter of 2023, non-financial companies paid over €0.2 billion less in taxes on their profits compared to the same period in 2022.

After tax payments, companies can utilize their profits for investments, savings, or distribute dividends to shareholders. In the first quarter of 2023, non-financial companies distributed €2.3 billion less in dividends compared to the same period in 2022. However, investments in fixed assets increased by €3.8 billion.

https://www.cbs.nl/nl-nl/nieuws/2023/25/minder-winst-niet-financiele-bedrijven-in-1e-kwartaal-2023


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