Profit and Dividends of Large Companies Surpass Pre-COVID Levels.
Luiz De Barros • Feb 02, 2024

Profit and Dividends of Large Companies Surpass Pre-COVID Levels.

Foto: Bolsa de valores em Amsterdam - Países Baixos.

Em In 2022, large companies recorded a net profit more than 4.5 times higher than the pandemic-marked year of 2020. Operational profits also remained high compared to the pre-COVID-19 period. Large companies that distributed dividends in 2022 allocated more than double to shareholders compared to the previous year. The amount distributed by these companies in dividends was about a quarter higher than the net profit in 2022. These insights are derived from an analysis by CBS based on Business Finance Statistics. The study was conducted on a panel of 320 large companies, representing approximately half of the net profit of all non-financial companies.

 

In 2022, the net profit of large companies exceeded 132 billion euros. Additionally, the operational profit (excluding financial gains) saw a significant increase, reaching 52 billion euros. During the COVID-19 crisis in 2020, when revenues fell more than fixed costs such as depreciation and wages, operational profit decreased to 16 billion euros. In 2021, there was a recovery in operational profit, reaching 32 billion euros, equivalent to the pre-pandemic level in 2019. Despite a slight increase in raw material costs in 2022, the operational profit of large companies was nearly 60% higher than that recorded in 2019.

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In 2020, the Lowest Number of Large Companies with Dividend Payouts.

 

In 2020, 115 out of 320 large companies distributed dividends, a fifth less than in 2019. In the same year, Dutch companies could apply for NOW support, which included a ban on dividends and bonuses. Among the large companies that distributed dividends in 2020, the amount distributed was twice the profit for that year (54 billion euros). Possibly, companies that distributed dividends tried to keep shareholder compensation stable. Although 20% fewer companies distributed dividends, the amount distributed by the remaining companies was 13% lower than the distributed dividends in 2019 (62 billion euros). In 2021, the dividend distribution remained virtually the same as in 2020. In 2022, the dividend distribution increased significantly, being 23 billion more than the net profit earned by these companies in the same year. Although a company can distribute more dividends in a year than the profit for that year, for example, by distributing retained earnings from previous years, it is common for companies to also reinvest part of their profits in the business.

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Highest Dividend Distributions in Companies under Foreign Control.

 

In 2019, large companies under foreign control made more than twice the profit in the Netherlands compared to large companies under Dutch control. Large companies under foreign control that paid dividends distributed, on average, almost four times more in dividends in that year than large companies under Dutch control. In 2020, the average dividend of companies under Dutch control decreased from 185 million to 149 million euros per company. On the other hand, in companies under foreign control, there was an increase. In 2022, a year in which large companies made more net profit, large companies under foreign control distributed an average of almost 1.3 billion euros.


 Fonte: CBS voor uw bedrijf - Financiën van Ondernemingen

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