FinExpertiza: Russian business expenses grew by 12% in 2022

In the nine months of 2022, selling and management expenses at large and medium-sized Russian enterprises not directly related to the production process increased by RUB 2.1 trillion. (by 12.3%), to a record 18.9 trillion rubles. This is stated in the FinExpertiza study. Average costs in terms of each enterprise increased by 9.7%, to 328.5 million rubles.

The growth of expenses for product promotion and administrative and managerial functions was noted in the areas of trade, manufacturing, mining, transportation and storage, as well as in the field of professional, scientific and technical activities. In total, these five macro-industries provided more than 80% of the increase in all corporate spending.

The lowest expenses were recorded in educational institutions, housing and communal services in the field of water supply and waste management, service sector enterprises, real estate business, as well as agricultural enterprises.

The largest growth in expenses occurred at enterprises in Moscow, the Moscow region, St. Petersburg, the Kemerovo region, the Krasnodar Territory, the Sverdlovsk Region, the Khanty-Mansiysk Autonomous Okrug, Tatarstan, the Krasnoyarsk Territory and the Novosibirsk Region.

However, the growth dynamics of expenses turned out to be lower than the average monthly inflation, which amounted to 14.3%. Average expenses per company grew even less – by 9.7%, from 299.4 million rubles. up to 328.5 million rubles.

According to FinExpertiza President Elena Trubnikova, enterprises were forced to significantly increase their spending due to inflationary processes, demand instability, and growth in production and logistics costs in 2022.

Selling and administrative expenses of enterprises increased in almost all regions. Moscow became the absolute leader, where business increased expenses by 609.9 billion rubles. This is 29.4% of the country-wide increase in corporate spending. This is followed by the Moscow region, St. Petersburg, the Kemerovo region, the Krasnodar Territory, the Sverdlovsk Region, the Khanty-Mansiysk Autonomous Okrug, Tatarstan, the Krasnoyarsk Territory and the Novosibirsk Region. The decrease in spending occurred in the Kaluga and Kaliningrad regions, Kabardino-Balkaria, Astrakhan region and Kalmykia.

Daria Erozbek