Their overall revenues increased by 9% compared to 2019.
The Slovak chemical and pharmaceutical industry recovered from the consequences of the coronavirus crisis in 2021 and recorded a year-on-year increase in revenues, which increased from 8.349 billion euros in 2020 to 10.767 billion euros in 2021.
Compared to 2019, total revenue last year increased by 9%, which in nominal terms exceeded the industry performance two years ago; but their growth was mainly due to rising producer prices, which reflected rising industry input costs, Chemical and Pharmaceutical Industry Association President Roman Karlubík reported.
Overall revenue increase
“The increase in revenues, however, is linked to the enormous growth in costs, in particular the growth in the prices of material inputs, as well as in the prices of electricity, gas and crude oil and the increased costs per employee during the pandemic,” Karlubík said. , quoted by the newswire TASR.
Revenues increased in all chemical and pharmaceutical sectors except for pharmaceuticals, where demand during the pandemic stabilized after an initial increase.
Last year, the most important revenues of the refined petroleum products sector increased by more than 50%.
Revenues also increased more significantly in the plastics in primary form sector by 39.5%, indicating a link with the automotive industry. Synthetic fibers jumped 28.03% and rubber and plastic products 12.81%. As refined petroleum products rose alongside higher oil prices, the man-made fiber subsector revised its pattern and focused on the production of protective equipment and masks, Karlubík added.
According to him, the value added in the Slovak chemical and pharmaceutical industry has also increased, while the growth in labor productivity has been accompanied by a decrease in the number of employees in the sector by 0.49% and average wage growth of 4.3%.
Anticipation of rising energy prices
The future outlook for higher energy prices is also negative due to the outbreak of war in Ukraine, which includes restrictions on the supply of some essential products on the sanctions lists. If the conflict in Ukraine can be resolved quickly, it will be possible to revitalize and implement the EU recovery and resilience plan, Karlubík added.
“For now, however, it looks like we have to prepare for further restrictions, a shortage of raw materials as well as a shortage of energy and unbearable prices,” he noted, quoted by TASR. “Companies continue to face challenges around sustainability strategies, carbon pricing and choosing greener solutions. Recovery from the Covid-19 crisis, the effects of the war in Ukraine and the associated sanctions will take time.”
He noted that the chemical and pharmaceutical industry is still an important branch of Slovak industry, accounting for 11.4% of its total sales. The chemical and pharmaceutical industry in Slovakia has 42,212 employees, which represents 10.6% of all employees in the Slovak industry.