Half of Brazilian Companies Started 2021 with Drop in Profits, Says FGV

In the most affected segments, 90% registered a worse result in January

São Paulo

Almost half of Brazilian companies started 2021 with a profit below that registered in the same period last year, according to a survey by FGV / Ibre.

The special survey shows that 48% of companies reported lower profits, 35% reported stability and 17% said they had a better result than January 2020.

In the researchers' assessment, the upsurge in the pandemic and the withdrawal of emergency aid are factors that point to a worsening of these results in the coming months.

Manufacturing is the sector with the highest percentage of companies that register an increase in profit (26%). Services stand out for the number of companies with a drop in results (62%), a percentage that is around 90% in the food and accommodation segments.

In commerce, 48% of companies had a drop in profit in January and 18% reported gains, numbers close to the general average of all sectors.

Translated by Kiratiana Freelon

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