In 2023, Serbia’s economy generated a total profit of 972.4 billion dinars (approximately 8.3 billion euros), according to the Agency for Economic Registers (APR) annual report.
The wholesale and retail trade sector led the profit rankings, contributing 194.4 billion dinars (around 1.6 billion euros). This figure, however, marks an 11 percent decrease from the previous year. In 2022, traders achieved record profits, 26.4 percent higher than in 2021, benefiting from favorable market conditions.
Retail profits have sparked debate, particularly in the context of high inflation. Concerns have been raised about how rising prices might reflect inflated trade margins. Jorgovanka Tabaković, Governor of the National Bank of Serbia, stirred significant discussion in September 2023 with a study indicating that retail trade margins had increased by 36.6 percent over the past four years, impacting final prices.
Retailers responded through their association in the Chamber of Commerce, arguing that their net profit margin was only 2.8 percent. Additionally, a Bureau of Statistics analysis revealed that the gross margins of food manufacturers were 3.6 times higher than those of retailers.
Despite the challenging environment, 2022 remained a strong year for retailers, and the largest retail chains continued to perform robustly last year. Analysis of the top eight retail chains in Serbia shows a 13.3 percent increase in operating income and a 9.5 percent rise in net profit, with an improved average margin.
Delez, owner of Maxi and Tempo stores, recorded the highest business income at 155.5 billion dinars, along with a profit of 7.4 billion dinars and a margin of 44.25 percent. Lidl followed with 103.8 billion dinars in revenue but saw a decrease in net profit to 1.8 billion dinars and a reduction in margin from 33.3 percent in 2022 to 30.2 percent in 2023.
Mercator was the third-largest chain with 102 billion dinars in revenue and a profit of 1.7 billion dinars, nearly tripling its profit from the previous year, and a margin of 36.5 percent.
Other significant players include Univerexport, with revenues of 37.7 billion dinars and a margin of 36.2 percent; Metro Cash and Carry, which posted 35.4 billion dinars in revenue but only 20 million dinars in net profit and a reduced margin of 16.3 percent; Aman, with 32.1 billion dinars in revenue, a profit of 1.1 billion dinars, and a margin of 20.4 percent; DIS, reporting 27.4 billion dinars in revenue, 500 million dinars in profit, and a margin of 16.5 percent; and Gomex, with 22 billion dinars in revenue, a net profit of 500 million dinars, and a margin of 41.5 percent.
It’s important to note that margin figures do not directly translate to profit. Retailers must cover various operating expenses, including salaries, rent, and utilities, from these margins. As a result, the net profit as a percentage of total business income for these eight chains was approximately 2.7 percent last year.
