Profits of non-financial corporations up

Gross profits before taxes consist of the gross operating surplus, the profits of foreign subsidiaries and the other profits. Gross operating surplus amounted to 46.8 billion euros in Q2 2022, up from 43.5 billion euros one year previously. Received non-product related subsidies were 3.4 billion euros lower, because non-financial corporations received fewer coronavirus-related subsidies. The gross operating surplus excluding subsidies was 6.6 billion euros higher than in Q2 2021. Especially energy companies, aviation, travel agencies, temporary employment agencies and accommodation services reported higher profits.

In Q2 2022, profits from foreign subsidiaries were 6.6 billion euros up on Q2 2021. Especially the petrochemical manufacturing industry received higher profits from subsidiaries. The other profits were 1.4 billion euros lower than one year previously. This is the result of higher payments to the government related to natural gas extraction. Domestic dividend revenues were higher than in Q2 2021. Both interest revenues and interest payments were somewhat lower.

More taxes and dividends paid, more investments in fixed capital

Non-financial corporations pay taxes over their profits such a corporation tax. In Q2 2022, non-financial corporations paid 4.9 billion euros more taxes over their profits than one year previously.
Profits remaining after paying taxes can be used for dividend payments, investments or savings. Non-financial corporations paid 10.0 billion euros more dividends than in Q2 2021. Investments in fixed capital were 4.4 billion euros higher.

Profit ratio down despite higher profits

Despite higher profits, the profit ratio – the gross operating surplus divided by the total gross value added – was lower in Q2 2022 than in Q2 2021 (34.0 versus 34.9 percent). This is due to the decrease in received non-product related subsidies, which are included in the gross operating surplus, but not in total gross value added.

It is possible that too many coronavirus-related subsidies have been paid out and that these must be paid back later. These paybacks are attributed to the period for which the subsidy was requested. Current figures are based on adjusted, but still provisional information. New information can lead to adjustments in the future.

On 23 September 2022, CBS releases the results of research enabling income and expenditure by non-financial corporations to be split up, into corporations owned by Dutch residents and corporations owned by foreign residents. As a result, reinvested earnings from foreign investments have been adjusted for the entire period 1995-2022. Figures in this press release are based on the results of this research.