Financing from “internal sources” means the financing of companies from the reinvestment of profits. According to the results of the research there are 164 JSCs that have distributed profit to the shareholders or have reinvested the profit to the company. 37 companies have distributed their profit in 63 cases with a total value of 16 billion ALL. Meanwhile, there are 127 companies that have re-invest their profits and have implemented this process in 228 cases.
Data Source: National Registration Center
Comment and Analysis: Author and ODA
Data Source: National Registration Center
Comment and Analysis: Author and ODA
JSCs that distributed their profits in the form of dividends are few in number. So, about 27 JSCs, have realized this process only once, while the remainder of the JSCs have distributed dividends 2 to 6 times. Regarding the monetary value of the distributed profit, turns out that only one company has distributed dividends 6 times with a value of 91.8 million euro or about 80% of the total dividends distributed by JSC in the country.
Distribution of Profit of JSC in the form of dividend from 1993 to 2014
Data Source: National Registration Center
Comment and Analysis: Open Data Albania
The exchange rate on 30.06.2014: 1 EUR = 140.26 (Source: Bank of Albania)
Data Source: National Registration Center
Comment and Analysis: Open Data Albania
Despite the fact that JSCs in the country have started their activity since 1993, dividends were first distributed after year 2003. This indicates a 10-year period of maturity of the Albanian business. The years with the highest number of JSCs that have distributed dividends are years 2010-2013 with 37 companies. While in terms of the value of the dividends distributed, the period with the highest concentration of the value of the dividend distributed is 2007-2010 with 104.2 million euros, or about 88% of the dividend distributed. This period coincides with the application of the flat tax rate of 10% on corporate incomes.
Distribution of Profit of JSC by Year 1993-2014
Data Source: National Registration Center
Comment and Analysis: Open Data Albania
The exchange rate on 30.06.2014: 1 EUR = 140.26 (Source: Bank of Albania)
Distribution of dividends in the JSCs of the country 1993-2014
Data Source: National Registration Center
Comment and Analysis: Open Data Albania
Distribution of Profit of Year 1993-2014
Data Source: National Registration Center
Comment and Analysis: Open Data Albania
The exchange rate on 30.06.2014: 1 EUR = 140.26 (Source: Bank of Albania)
Analyzing the period that took JSCs to first distribute dividends, it turns out that about 19 JSCs, needed 7-12 years after the establishment to first distribute dividends. While 18 JSCs needed a relatively shorter time, 1-6 years after the establishment. Other joint stock companies distributed dividends 13-17 years after the establishment. While the majority of joint stock companies operating in the country haven’t distributed dividends yet.
Data Source: National Registration Center
Comment and Analysis: Open Data Albania
From 1999 to June 2014 there were 228 cases recorded where companies have reinvested profits. This amounts reaches the value of 207 million euro. Regarding the monetary value of the reinvested profits it results that 36 JSCs that have reinvested profit 2 or 5 times have financed their activities with internal resources with the value of 112.8 million Euro or about 56% of the total of reinvested profit of JSCs in the country.
Reinvestment of JSC’s profit by year 1993-2014
Data Source: National Registration Center
Comment and Analysis: Open Data Albania
The exchange rate on 06.30.2014: 1 EUR = 140.26 (Source: Bank of Albania)
Profit re-investment in the country’s JSCs 1993-2014
Data Source: National Registration Center
Comment and Analysis: Open Data Albania
Profit re-investment in the country’s JSCs 1993-2014
Data Source: National Registration Center
Comment and Analysis: Open Data Albania
The exchange rate on 06.30.2014: 1 EUR = 140.26 (Source: Bank of Albania)
Despite the fact that Albanian JSCs have started to distribute dividends after 2003, they have used profit as a mean of financing their activity from internal sources from 1999 onwards. This group includes the cases of re-evaluation of assets due to the increase of their market price. Thus, although the performance of the re-investment of profits keeps a normal trend over the years, the period with the greatest concentration of companies that are financed from internal sources is 2010-2013 with 141 JSCs. While in terms of the monetary value of reinvested profit the period 2010-2012 has the greatest concentration with 118.4 million euro.
Contributed by: Artan Gjergji