Corporate profits in Cameroon declined in 2024 for the first time in six years, even as business activity continued to expand. According to the National Institute of Statistics (INS), the combined net profit of companies operating in the country fell by 13% year on year, although it remained above CFA500 billion, as in 2022 and 2023.
In its report on the economic and financial situation of companies in 2024, the INS describes the reversal as unusual. The institute notes that a comparable decline in aggregate net profit has not been recorded since 2018, marking 2024 as a clear break in the post-pandemic profit trend.
The downturn came despite solid revenue growth. Corporate turnover increased by 12.7% over the year, but this did not translate into higher earnings. As a result, the average profit margin fell to 3.6% in 2024, down from 4.7% in 2023. In practical terms, CFA100 in revenue generated CFA3.6 in profit, compared with CFA4.7 a year earlier.
The divergence between rising sales and declining profits points to mounting cost pressures, tighter pricing conditions, or unfavorable sectoral dynamics. While the INS does not provide a detailed breakdown of the underlying drivers in the report excerpt, the data suggest that higher revenues were absorbed by expenses rather than converted into net income.
Sectoral performance also weakened. Of the 37 branches of activity monitored, 19 posted losses in 2024. Twelve of these sectors had already been in deficit in 2023, indicating persistent structural fragility in parts of the corporate sector.
The INS identifies several industries as major contributors to the decline in aggregate profits, including hydrocarbon and energy extraction, grain processing and starch-based products, and the dairy, fruit, vegetable, and broader food-processing industries. Given their weight in the economy, deteriorating results in these sectors had a significant impact on national profit figures.
The data point to a year marked by resilience in activity but erosion in profitability, highlighting growing pressures on corporate margins across the Cameroonian economy.
BRM
