Industry Profits Steady In 2022-23: Australia

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.

Operating profit before tax by industry

Industry2020-21 ($m)2021-22 ($m)2022-23 ($m)
Agriculture, Forestry and Fishing16,56422,91123,376
Mining97,184184,659241,905
Manufacturing31,97240,59940,159
Electricity, Gas, Water and Waste Services16,23714,27813,982
Construction48,20944,50051,785
Wholesale Trade25,76735,74141,779
Retail Trade32,28333,24138,458
Accommodation and Food Services8,47210,39112,595
Transport, Postal and Warehousing11,31414,84019,069
Information Media and Telecommunications4,0825,0024,449
Rental, Hiring and Real Estate Services60,654101,54756,092
Professional, Scientific and Technical Services70,555109,32166,382
Administrative and Support Services9,62310,52812,646
Public Administration and Safety9421,2861,552
Education and Training5,4295,3255,975
Health Care and Social Assistance33,10036,70138,014
Arts and Recreation Services5,5545,4535,388
Other Services11,33011,78511,631

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/ABS Public Release. View in full here.