Revenue, profitability up in Vitebsk Oblast in H1

VITEBSK, 25 August (BelTA) - The positive trends towards growth of revenue and profitability were registered in Vitebsk Oblast in H1 of this year, deputy chairman of the Vitebsk Oblast Executive Committee Oleg Matskevich said at a session of the committee. In H1 of 2011 net income was up by 66% over the same period last year to a total of more than Br876 billion, sales rose 2.8 times as against H1 2010 and reached Br1.7 trillion. In general, revenue from product sales increased by 48%, return on sales rose from 3.3% in 2010 to 6.3%. In January-June 83% of economic entities in the region operated in the black. However, Oleg Matskevich noted that local authorities failed to take sufficient measures to improve the efficiency of the national economy. Some 5.7% of economic entities reported losses. The analysis conducted by the Vitebsk Oblast Executive Committee showed that the general number of unprofitable organizations decreased yet the amount of losses increased by 1.2% to Br83.5 billion. Thus the biggest loss-making companies are Novopolotsk BVK plant, Obol Ceramic Factory, Orshastroymaterialy and Kim. They accounted for nearly 61% of the losses in the industry and about 44% of the oblast. The main reason for the losses is extremely high costs, said Oleg Matskevich. One in five of the organization reports that expenditures on production account for more than 90% of sales. According to the Chairman of the Vitebsk Oblast Executive Committee Alexander Kosinets, “The main thing is to ensure the wage growth through efficient operation of enterprises and strengthen the social component.”

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