Kazakhstan: Profitability of Mid and Large Businesses Hits 5-Year Low

The profitability of medium and large companies in Kazakhstan has dropped to its lowest level since 2020, Orda.kz reports.

According to analysts at the First Credit Bureau, profitability in the second quarter of 2025 fell to 13.3%. A year earlier, the figure was 15.8%. While the decline is not sharp, analysts note that the main issue is a rise in production and operating costs.

Overall profit fell slightly year-on-year, even as the number of enterprises increased. Meanwhile, non-production expenses — especially the cost of goods and services — rose by 21% in nominal terms,the FCB noted.

Two sectors were unprofitable in the second quarter. The arts, recreation, and entertainment industry reported a profitability of -2.1%. The hotel and restaurant sector performed even worse, at -39.5% — its lowest level since 2019.

However, these figures apply only to large companies. Small and medium-sized enterprises are faring better.

In this case, it was large companies as a group that ended up in the red, while medium-sized firms showed positive results. Losses were largely driven by a sharp increase in ‘Other Expenses’ — costs outside normal operations, such as asset impairment, exchange rate differences, and bad debt write-offs,the FCB added.

Original Author: Nikita Drobny