Dax companies drive more profit than ever before

The largest listed companies in Germany have completed an extraordinary first quarter: sales and profits were higher than ever before. At the same time, uncertainty is growing in many companies.

Despite the poor initial situation, the Dax groups generated more revenue and profit in the first quarter than ever before. Sales increased by 14 percent year-on-year, while profits increased by 21 percent.

This was announced by the management consultancy EY on Tuesday. Compared to the pre-crisis year of 2019, sales increased by 27 percent, while profits increased significantly by 85 percent.

“The general conditions remain extremely difficult,” said Henrik Ahlers, Chairman of the Management Board of EY. Supply chains continue to be under pressure, material and energy prices have risen and the war in Ukraine is leading to a decline in investments. “So far, Germany’s top corporations have been able to cushion the effects of these various crises remarkably well,” Ahlers continued.

U.S. and Canada generate sales plus

According to EY, the strong growth in the first quarter was driven in particular by sales in the North American market. Here, sales rose by a total of 19 percent, and demand has “recently developed very strongly”.

Last year, the Asian markets in particular generated growth, but here the increase in sales in the first quarter of 2022 was only eight percent. The reason is the strict corona lockdowns in China.