Development of profitability in small and medium-sized wineries in Slovakia

Winemaking has a long tradition in Slovakia, but wineries face many challenges today.In 2021, Slovakia had 692 wine-and wine-based producers and 260 traders dealing with wine products.Profit is a key indicator of successful business performance, representing the difference between revenues and costs.It fulfils various functions, including evaluative, distributive, motivational, and developmental roles.The primary aim of this study is to evaluate the development of profitability in a selected group of wineries in Slovakia during the period 2013-2021.A total of 107 wineries were categorized into micro, small, and medium-sized enterprises, with an analysis of their cost, revenue, and profitability trends from economic activities.Medium-sized wineries consistently reported higher revenues than costs from economic activities each year, resulting in a profit from operations.In contrast, micro-wineries recorded a loss from operations throughout the analyzed period.