Australian retailers have shared in an overall operating profit lift of $5.2 billion in the FY23 period compared to FY22, according to new data from the Australian Bureau of Statistics (ABS).
Overall, retail trade operating profit hit $38.4 billion in FY23, with earnings before interest, tax, depreciation and amortisation hitting $48.8 billion.
Amid this, the overall value of retail trade has lifted by 14.4 per cent to $117.4 billion.
The double-digit percentage lift across both targets in retail trade comes as operating profit declined 0.3 per cent across all selected industries - or down $2.1 billion.
The mining industry had the largest increase in operating profit of $57.2b (up 31.0 per cent), while the rental, hiring and real estate services industry had the largest decrease of $45.5b (down 44.8 per cent).
“Operating profit results were mixed at an industry level as many businesses faced the challenge of higher input costs in 2022-23,” ABS head of business statistics Robert Ewing said.
“This annual data for 2022-23 adds more detail and nuance to our understanding of how businesses responded to a range of economic challenges.
“Businesses experienced a mix of conditions including higher input costs, increased demand due to higher migration and a rise in non-discretionary spending due to the end of COVID-19 restrictions. This data shows how businesses have performed and that in some cases, businesses were able to pass on higher costs to consumers.”
Other industries recording modest lifts in operating profit were the wholesale industry ($6 billion), transport ($4.2 billion), and accommodation and food services ($2.2 billion).
The Reserve Bank of Australia’s actions to reduce inflation by raising the cash rate from 0.35 per cent to 4.10 per cent over the 2022-23 financial year led to large negative revaluations and operating profit declines in the rental, hiring and real estate services industry, according to ABS.
Regarding the boom across mining, ABS cited shortages in energy commodities in Europe and strong demand in Asian markets through 2022 benefitted coal mining, as well as oil and gas extraction.