Businesses were able to keep overall operating profits steady in 2022-23, according to the latest data released by the Australian Bureau of Statistics.
Robert Ewing, ABS head of business statistics, said: “Operating profit results were mixed at an industry level as many businesses faced the challenge of higher input costs in 2022-23.
“This annual data for 2022-23 adds more detail and nuance to our understanding of how businesses responded to a range of economic challenges.
“Businesses experienced a mix of conditions including higher input costs, increased demand due to higher migration and a rise in non-discretionary spending due to the end of COVID-19 restrictions. This data shows how businesses have performed and that in some cases, businesses were able to pass on higher costs to consumers.”
Industries benefitting from these factors, those showing operating profit growth, included the Retail industry ($5.2b), Wholesale industry ($6b), Transport ($4.2b), and Accommodation and Food Services ($2.2b).
The Reserve Bank of Australia’s actions to reduce inflation by raising the cash rate (from 0.35 per cent to 4.10 per cent over the 2022-23 financial year) led to large negative revaluations and operating profit declines in the Rental, hiring and real estate services industry ($45.5b).
The Mining industry had the largest growth in operating profit ($57.2b). Shortages in energy commodities in Europe and strong demand in Asian markets through 2022 benefitted Coal mining, as well as Oil and gas extraction.
| Industry | 2020-21 ($m) | 2021-22 ($m) | 2022-23 ($m) |
|---|---|---|---|
| Agriculture, Forestry and Fishing | 16,564 | 22,911 | 23,376 |
| Mining | 97,184 | 184,659 | 241,905 |
| Manufacturing | 31,972 | 40,599 | 40,159 |
| Electricity, Gas, Water and Waste Services | 16,237 | 14,278 | 13,982 |
| Construction | 48,209 | 44,500 | 51,785 |
| Wholesale Trade | 25,767 | 35,741 | 41,779 |
| Retail Trade | 32,283 | 33,241 | 38,458 |
| Accommodation and Food Services | 8,472 | 10,391 | 12,595 |
| Transport, Postal and Warehousing | 11,314 | 14,840 | 19,069 |
| Information Media and Telecommunications | 4,082 | 5,002 | 4,449 |
| Rental, Hiring and Real Estate Services | 60,654 | 101,547 | 56,092 |
| Professional, Scientific and Technical Services | 70,555 | 109,321 | 66,382 |
| Administrative and Support Services | 9,623 | 10,528 | 12,646 |
| Public Administration and Safety | 942 | 1,286 | 1,552 |
| Education and Training | 5,429 | 5,325 | 5,975 |
| Health Care and Social Assistance | 33,100 | 36,701 | 38,014 |
| Arts and Recreation Services | 5,554 | 5,453 | 5,388 |
| Other Services | 11,330 | 11,785 | 11,631 |
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