Singapore top companies’ total sales hit $2.42 trillion

That’s twice the amount 6 years ago.

The combined sales of Singapore’s top companies has cracked the S$2 trillion mark according to the Singapore 1000 ranking released today by DP Information Group (DP Info).

The Singapore 1000 ranks the largest and most successful 1,000 companies in Singapore. Together with the Small and Medium Enterprise 1000 (SME1000) and the Singapore International 100 (SI100), the rankings are the most comprehensive audit of the performance of Singapore’s corporate sector.

The financial results of more than 40,000 companies are analysed to arrive at the combined sales of Singapore’s corporate leaders increased by an impressive 21.7 per cent, from S$1.98 trillion in 2012 to S$2.42 trillion in 2013.

According to Ms Chen Yew Nah, Managing Director of DP Info, the S$2 trillion mark is a significant milestone. “Cracking the S$2 trillion mark is remarkable given S$1 trillion in sales was only achieved in 2007. And during the last six years the world suffered a major economic crisis.” “S$2.4 trillion is more than the Gross Domestic Product (GDP) of every country in the world except the 10 largest economies.”

The bulk of the increase in revenue came from the Commerce Wholesale sector, where higher commodity prices including oil have driven up the revenue numbers. With 395 companies in the list, Commerce Wholesale has the largest representation on the Singapore 1000 list. Sales for the sector jumped 31.8 per cent to S$1.6 trillion, of which S$881 billion came from the trade of fuel and related products.

The record revenue has not translated into record profits. boomed compared to 2012, profits rose by only 2.2 per cent. There was also an increase in the number of loss making companies, from 8 per cent to 10.5 per cent.

Profit margins continue to be squeezed. In 2013 the gross profit margin fell to 5.8 per cent, compared to 7.0 per cent in 2012 The top 1000 SMEs in Singapore generated S$29.4 billion in combined sales, an increase of 11.8 per cent compared to the 2012 rankings. Their combined profit was S$3.4 billion, up by 28.6 per cent compared to last year.

Hospitality/F&B companies delivered the biggest leap in combined sales, as they did in 2012. Last year the sector’s revenue jumped by 22.3 per cent to S$652.5 million. This year the sector added another 46.7 per cent in revenue, taking its total revenue to S$957.0 billion.

This resulted in an 83.1 per cent increase in combined profits. Much of this increase came from the leap in the number of F&B companies making the list – from 27 to 34 this year.

SME manufacturers are also doing well, with their combined sales jumping by 31.4 per cent. Two SME manufacturing sectors saw their sale more than double compared to last year – Chemical Products (156.3 per cent) and Fabrics / Personal Effects (118.0 per cent).