The annual operating profit within the retail sector grew by $1 billion to $33.3 billion in 2021-2022, following a $9.1 billion rise from 2019-2020 ($23.1b), data from the Australian Bureau of Statistics (ABS) revealed.
Annual operating profits grew in nearly every sector amid fewer domestic COVID-19 restrictions in the 2021-2022 period.
ABS head of business indicators Robert Ewing said profitability was largely driven by higher demand for goods and services, which saw businesses pass higher costs onto consumers.
“After slower profit growth across the earlier COVID-19 pandemic-affected years, almost all industries recorded higher operating profits in 2021-22,” Ewing said. “This is despite many businesses seeing increased input costs and a reduction in government COVID-19 subsidies.”
The Mining industry recorded the largest growth in operating profit ($84.2b), driven by higher export prices, followed by Rental, hiring and real estate services ($41.7b), Professional, scientific and technical services ($38.6b), and Wholesale trade ($9.8b).
Operating profit in the Construction (-$4.4b) and Electricity, gas, water and waste services (-$1.6b) industries bucked this trend, as both were impacted by rising commodity prices and supply chain issues.
“Businesses of all sizes increased income and operating profit in 2021-22,” Ewing said.