2020 better than 2019 for B.C.’s most profitable companies

Average net income increased during the pandemic year for top performers

For B.C.’s most profitable companies, 2020 was more profitable than 2019, according to data collected on Business in Vancouver’s Top 50 Most Profitable Companies list (https://biv.com/lists).

Over the past year, average net income grew 6.1% to $266.3 million in 2020 from $251.1 million in 2019. The increase was a welcome change from the steep decline companies on the list suffered the year before.

In 2019, net income sank 19.8% to $251 million from $313.2 million in 2018. While average net income recovered somewhat in 2020, it was not enough to recover from the previous year’s decline.

Average net income was bolstered by growth in average revenue for the province’s most profitable companies. Their average revenue grew 11.2% to $1.64 billion in 2020 from $1.47 billion in 2019, but was not able to fully recover to 2018 levels after falling 22.6% in 2019.

Median revenue for the top companies on BIV’s list followed a similar trajectory, dropping in 2019 and rebounding in 2020.

In contrast, median net income declined by 7.6% to $65 million in 2021.

Of the five most profitable companies on BIV’s list, No. 1 Newmont Corp. (TSX:NGT) recorded the largest long-term net income growth. Its profit increased to $2.7 billion in 2020 from a loss of $923 million in 2016.

Despite its net income decline of 3.2% over the past year, Newmont’s net income growth far outpaced that of other companies in the top five. •