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< Blog 18April_2016
Blog 22April_2016 >

Food and Beverages Survey in South Africa

Category: Restaurants and take-aways
Date: 21 April 2016 

Related Topics

Sitting at a small coffee shop the other day, we wondered what contribution these smaller companies are making to the overall economy. Well we set out to find out. And for this blog post we take a look at the Quarterly Financial Statistics (QFS) as published by Statistics South Africa.
  • Financial Well-being of South African companies
  • Financial ratios calculator


Turnover_QFS2Dec2015 | amCharts
The graphic above shows the contribution to total turnover by all companies in South Africa, based on their size (sizes are determined by DTI cut offs and adjusted for Stats SA sampling purposes).

What we found very interesting from the graph is how small the contribution of medium sized enterprises is when compared to the large and small companies.

Turnover_QFS2Dec2015 | amCharts
The graphic above shows the contribution to total net profit after taxes by all companies in South Africa, based on their size (sizes are determined by DTI cut offs and adjusted for Stats SA sampling purposes).

What is clear is the large drop in the overall contribution of large companies to net profits when compared to their contribution to total turnover. Lower margins due to increased costs, higher average tax rates etc all adds up. So much so that smaller companies contribute almost as much to overall net profits in South Africa as large companies.

Average tax rates are: (Tax as % of net profit before taxes):
Large : 35%
Medium: 18%
Small: 13%


Net profit Margin After Taxes: 

Large : 2.99%
Medium: 6.11%
Small: 6.98%


Based on the above one clearly wants to be a small company. As a Large company you are taxed a lot more and your overall net profit margins after taxes coming in well below small and medium companies. As a medium company you trapped in limbo, you taxed more than a small company, and policies are less geared towards assisting you or aiding your growth.

As a small company, all kinds of policies and initiatives are in place in order to assist and aid in your growth, your tax burden is far less too. The question is once your small company graduates to a medium sized company, what policies and measures are in place to take your business to the next level? Perhaps government should look into this, to ensure that medium sized companies are not stuck in limbo and they do move forward once they are passed their infancy.

Related Topics

  • Financial Well-being of South African companies
  • Financial ratios calculator


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  • Home
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    • Blog-5Jun2018
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  • Economics
    • Rand Dollar Exchange Rate
    • South Africa's GDP
    • South Africa's Unemployment
    • SA by numbers
    • Economic Progress Index
    • Taylors Rule
    • South Africa's Formal Business Sector
    • South-Africa's-Fiscal-Policy
    • SA EU Trade Data
    • Inflation Heat Map
    • Population Density Map
    • Labour Market Dynamics
    • Estimating the Size of the Informal Economy
    • SA Consumer Spending Patterns
    • South Africa's Monetary Fiscal Policy Mix
    • GDP Animations >
      • SouthAfrica
      • WesternCape
      • EasternCape
      • NorthernCape
      • FreeState
      • KwaZuluNatal
      • NorthWest
      • Gauteng
      • Mpumalanga
      • Limpopo
    • South Africa's Economic Structure
    • South Africa's Economic History
    • South Africa's Trade Data Page
    • South Africa's Food and Beverages Sector
    • Financial Well-being of South African Companies_2015
    • SA vs the World
    • Budget Day Page (24 Feb 2016)
  • Stock in Focus
    • JSE ALSI Chart
    • Sector Comparison Page
    • JSE-Calendar-Tracker-2019
    • Adcorp (ADR)
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    • Apple (AAPL)
    • Ascendis (ASC)
    • AVI (AVI)
    • Bidvest (BVT)
    • Blue Label Telecoms (BLU)
    • Bowler Metcalf (BCF)
    • Capitec (CPI)
    • City Lodge Hotel Group
    • Clicks Group (CLS)
    • Coronation (CML)
    • Curro Holdings (COH)
    • Discovery (DSY)
    • Distell (DST)
    • EOH (EOH)
    • Famous Brands (FBR)
    • Ferrari (RACE)
    • FirstRand Group (FSR)
    • Grindrod (GND)
    • GrowthPoint (GRT)
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    • Hyprop (HYP)
    • Hyprop (HYP)_1Jun2016
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    • JSE (JSE)
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    • MTN (MTN)_May2016
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    • Mr Price Group (MRP)_8APR2016
    • Nedbank (NED)
    • OneLogix (OLG)
    • Peregrine Holdings (PGR)
    • Pick 'n Pay Stores (PIK)
    • Pioneer Foods (PFG)
    • PSG Group (PSG)
    • Quantum Foods (QFH)
    • RCL Foods (RCL)
    • Remgro (REM)
    • Richemont (CFR)
    • RMB Holdings (RMH)
    • Rolfes (RLF)
    • Sanlam (SLM)
    • Sasol (SOL)
    • Sasol (SOL)_18sep2016
    • Santova (SNV)
    • Spar Group (SPP)
    • Shoprite Holdings (SHP)
    • Spur Corporation (SUR)_7Sep2017
    • Standard Bank (SBK)
    • Steinhoff International Holdings (SNH)
    • Stor-Age (SSS)
    • Super Group (SPG)
    • Taste Holdings (TAS)_30May2016
    • The Foshini Group (TFG)
    • Value Logistics (VLE)
    • Vodacom (VOD)
    • Wilson Bayly Holmes Ovcon (WBO)
    • Woolworths (WHL)
    • Woolworths (WHL)_24Aug2017
    • Zeder (ZED)
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