Distribution shock at ISO 500

The Istanbul Chamber of Industry (ISO) yesterday announced the 2022 results of the ‘Turkey’s 500 Largest Industrial Companies (ISO 500)’ research.

While the boom in profits achieved by companies last year was notable in the results, the dramatic decline in workers’ share of the pie also drew attention.

The proportion that companies receive as net value added benefit, which was 10.9 percent in 2018, 21.3 percent in 2019, 30.3 percent in 2020 and 39.7 percent in 2021 , will skyrocket in 2022 and reach 54.5 percent.

The proportion that workers receive as wages of the net value added, which was 54.7 percent in 2018, 51.5 percent in 2019, 44.5 percent in 2020 and 32.2 percent in 2021 , will increase to 26.9 percent in 2022. decreased by .

The share of interest in net value added, which was 34.4 percent in 2018, 27.1 percent in 2019, 25.3 percent in 2020 and 28.1 percent in 2021, decreased to 18.6 percent in 2022.

The exchange rate and interest policy implemented also reduced the proportion of the value added produced that goes to interest.

THE INCREASE IN PROFITS EXCEEDS 121 PERCENT

In 2022, salaries paid per employee in ISO 500 increased by 78 percent, while total profit for the period (before taxes) increased by 121 percent compared to the previous year, reaching 485.4 billion TL.

Total salary and salary payments of ISO 500 companies increased by 85.7 percent last year, reaching 194 billion TL. Total ISO 500 employment also increased 4.1 percent last year, reaching 788,389.

In 2022, ISO 500 sales based on production will increase by 119 percent to 4 trillion 485 billion Turkish lira, total operating profit will increase by 96.3 percent to 671.2 billion Turkish lira, profit before interest, depreciation and taxes will increase by 99.3 percent. increased to 807.8 billion TL with an increase of .

The actual increase in net sales from net production was 33.3 percent according to the CPI and 10.8 percent according to the PPI.

WHILE COMPANIES GROW, LABOR PARTICIPATION DECLINES

According to TÜİK data, the decline in labor’s share of national income across Turkey has accelerated since 2016. Labor’s share, which was 32 percent in 2016, decreased by 8.3 points in six years. Labor participation decreased from 32 percent in 2016 to 23.7 percent in 2022.

The net operating surplus, which represents the equity share, was 43.9 percent in 2021 and increased to 46.9 percent in 2022. The equity share, which was 41.6 percent in 2016, increased 5 .3 points in 6 years.