SINGAPORE: Singapore’s largest companies by sales turnover are making less profits.
According to the Singapore 1000 report, the gross profit margin for Singapore’s largest 1,000 firms fell to 5.8 per cent, compared to 7.0 per cent last year.
The number of loss—making companies also increased to 105, from 80 in 2012.
"The low profit increase shows the impact higher costs are having on the profitability of Singapore’s corporate sector," said Chen Yew Nah, managing director at DP Information.
"During the ranking period, raw material and oil prices as well as jumps in rents, labour and transport costs all had an impact of the bottom—line of Singapore’s leading companies," added Chew.
Singapore’s corporate leaders are seeing lower profit margins although combined sales surpassed the S$2 trillion mark. Sales increased 21.7 per cent to S$2.42 trillion in 2013.
The bulk of the increase in sales came from companies in the commerce—wholesale sector, as higher commodity prices drove up revenue.
Sales in the sector jumped 31.8 per cent to S$1.6 trillion, of which S$881 billion came from the trade of fuel and related products.
Manufacturing firms also contributed significantly to sales growth, with S$219.0 billion in revenue, while the transport and storage sector recorded sales of S$156.7 billion.
In a separate ranking, the top 1000 SMEs in Singapore grew sales by 11.8 percent to S$29.4 billion.
Combined profit rose by 28.6 percent to S$3.4 billion.
The top 100 international companies saw overseas revenue increase 6.8 percent to a record S$207.1 billion.
The rankings are published by DP Information Group with Ernst and Young.
The findings reflect analysis done on the financial results of more than 40,000 companies.
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