Sun, 05 Dec 2021

Canadian corporate sector sees increased NIBT in Q3

24 Nov 2021, 05:18 GMT+10

OTTAWA, Nov. 23 (Xinhua) -- The Canadian corporate sector saw a quarterly increase of 2.8 percent in net income before taxes (NIBT) in the third quarter of 2021, Statistics Canada said Tuesday.

The non-financial sector drove the increase during the quarter, recording an increase of 5.6 percent in NIBT.

The financial sector offset some of the gains made by the non-financial sector, slipping 1.6 percent in the quarter. Through the quarter, businesses saw input prices and prices for raw materials rise as supply chains were disrupted across the world, and many advanced economies began to observe inflationary pressures, said Statistics Canada.

Late in the second quarter and early in the third quarter of 2021, Western Canada experienced a record-setting heatwave that fuelled wildfires and droughts, affecting the supply chain for food products.

Total grain and pulse production in the country is expected to see a sharp decline in 2021 due to adverse weather conditions and lower crop yields in the Prairie provinces.

As some of these agricultural products were harvested in fall, the effect of decreased volumes may persist through the food products supply chain for months to come.

During the third quarter, the agriculture, forestry, fishing, and hunting industry saw a 41.2 percent decrease in NIBT.

Operating revenues for food and soft drink and ice manufacturers grew 677.4 million Canadian dollars, up 1.7 percent from the second quarter of 2021.

The before-tax profit margin for the industry edged up 4.6 basis points, showing that increases in the cost of goods sold kept pace with revenue growth.

During the third quarter of 2021, food and soft drink and ice manufacturers saw their NIBT increase 50.9 million Canadian dollars or 2.7 percent.

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