The financial results of all companies in Bulgaria continued to break records in 2022, driven by inflation. Last year, the combined revenue of active companies in the country surged by an unprecedented 34%, reaching 611.5 billion levs (312.6 billion euro), with growth exceeding the prior year's rise of 15% despite the higher base. These results were achieved by a total of 375,000 companies operating in the country, as per tax statements submitted to the National Revenue Agency (NRA).
In this context, the top 100 companies listed in this year's edition of Capital Weekly's ranking increased their turnover by almost 60% in 2022, twice as fast compared to 2021. In nominal terms, their combined revenue accounts for over 1/5 of the total reported in the country.
In parallel, the combined expenses of the operating businesses also surged by 34%, reaching 564.7 billion levs, as costs of materials, energy, and labour rose. Thus, the total accounting profit for 2022 amounts to 55.2 billion levs, up 28% on 2021. However, the year marked by the war in Ukraine and average annual inflation of 13% according to national statistics was not favorable for all economic entities, with reported loss growing by 3.4% to almost 6 billion levs.
The fastest profit growth during 2022 is observed in the hospitality and restaurant sector, closely followed by agriculture. Conversely, losses deepened significantly in the mining industry. This is clear from data based on companies' tax statements provided to Capital Weekly by the NRA.
The number of active companies in the country also rose, by nearly 11,000. Since 2016, only active enterprises are required to submit corporate tax statements to the NRA.
The leading 100
The new annual Capital 100 ranking, to be published on July 28, reveals interesting data. The top 100 companies marked a colossal 60% surge in turnover compared to 2021. Their combined revenues of 132 billion levs account for over one-fifth of the 2022 total reported by all companies. Moreover, the profit of the top 100 companies reached last year a record high of nearly 8 billion levs, up 27% year-on-year.
Winners and losers
From the NRA data it is evident that the trade sector continues to lead for another year, with companies there recording a combined profit of 10.7 billion levs in 2022. This represents an increase of 28% (2.4 billion levs) compared to the previous year. Next is the processing industry, with its profit increasing by nearly the same amount (2.3 billion levs) to 8.8 billion levs. This represents a 36% growth rate. The third position is again for the energy sector. Companies there report a total profit of 4.7 billion levs for 2022, which is a 33% increase, or 1.2 billion levs more than in 2021. Overall, the reported tax profit for the economy jumped an impressive 25% to 46.7 billion levs, which represents a nominal increase of 9.4 billion levs.
The deepening of losses reported by the companies in the country is more modest, by 3.4% (196.6 million levs) to slightly below 6 billion levs. The processing industry is the sector with the largest loss in 2022, which amounts to 748 million levs, increasing by 170 million levs on 2021. The financial and insurance sector comes next with a loss of 735 million levs, an increase of 133 million levs compared to 2021. Third among the top 3 loss-making sectors is real estate, which reports a loss of 223 million levs, with a negative balance of 718 million levs.
The financial results of all companies in Bulgaria continued to break records in 2022, driven by inflation. Last year, the combined revenue of active companies in the country surged by an unprecedented 34%, reaching 611.5 billion levs (312.6 billion euro), with growth exceeding the prior year's rise of 15% despite the higher base. These results were achieved by a total of 375,000 companies operating in the country, as per tax statements submitted to the National Revenue Agency (NRA).
In this context, the top 100 companies listed in this year's edition of Capital Weekly's ranking increased their turnover by almost 60% in 2022, twice as fast compared to 2021. In nominal terms, their combined revenue accounts for over 1/5 of the total reported in the country.
