TOP 10 Most Profitable Companies in the World in 2019
We have previously published the list of the most valuable companies in the world. However, it’s surprising that the list is very different from the current list of the most profitable companies.
The point is that a company may be valuable and sometimes even overvalued but generate less revenue than other analogous company.
We would like to introduce you to the TOP 10 list of such companies. In this article you’ll learn what companies yielded the largest profit to their owners in the last year.
It should be noted that we have analyzed production output data and financial statements of companies as of January 11, 2019.
So, let’s start.
TOP 10 Companies in Terms of Revenues
Industry: Retail business.
Products: Bakery food, beers, frozen uncooked food, meat, pharmaceuticals, seafood, and other goods.
Walmart is at the TOP in the list of the most profitable companies in the world.
Walmart is the largest chain of retail multiple stores offering goods for lower prices than the average in the United States and Canada. It was founded by Sam Walton and is headquartered in Bentonville located in the north-western part of the state of Arkansas.
Interestingly, so far Walmart has not managed to establish the same effective delivery system as that of, for example, Amazon.
Although sometimes the company brings original ideas to life. For example, buyers who agreed to deliver goods to their neighbors who purchased them online were offered a system of discounts in 2013.
Despite its first place in the ranking, Walmart has its shortcomings among which are problems with expansion, competitive battle against Amazon, and frequent critics by its customers.
However, they are far from being critical allowing for its capitalization level and international influence.
According to many analytical experts, Walmart may “collapse” only under its “own weight” due to its giant size. Nobody knows whether the giant with its archaic system of organizing the work process can quickly adapt to the rapidly growing market where you need to be ready 24/7 to rearrange “your positions” promptly.
Industry: Electrical energy.
State Grid Corporation of China is a Chinese grid company which is the largest company in the industry around the world. It ranks the second place in the TOP list of the companies with the greatest revenues in the world.
State Grid was established in 2002 by decree of the State Council of the People's Republic of China as a by-product of the three-stage reform of the country’s power sector that started in 1986.
The reform separated the previous State Power Corporation of China from two grid companies resulting in a state-owned electric power system. Nowadays, State Grid owns and runs five regional grid companies and 24 electric power companies.
The company primarily focuses on creation and operation of electric grids both within and outside China (for example, Philippines and Brazil). The corporation has a monopoly on power transmission and sales in the domestic market.
Industry: Oil refining.
China Petroleum & Chemical Corporation (Sinopec Group) is one of the most powerful Chinese state-owned companies and one of the most profitable companies in the world. It holds the third place in our TOP ranking.
It was established in July 1998 after reorganization of the state-owned China Petroleum & Chemical Corporation which had been operating since 1983. Sinopec is involved in oil and gas fields exploration and development and also in processing and sale of oil and gas and their derivative products.
Interestingly, Chén Tónghǎi who was sentenced to the most dreadful punishment – death penalty – for bribery in 2009 had been president of the company from 2003 to 2007.
It’s a funny thing that Wang Tianpu, the ex-head of China Sinopec Group, was sentenced to 15.5 years' deprivation of liberty for bribery too in January 2017.
China National Petroleum
Industry: Oil refining.
China National Petroleum is the biggest Chinese oil and gas company headquartered in Beijing. The company ranks 4th in the Fortune Global 500 rating among the companies that generated the highest revenues.
CNPC was founded in September 17, 1988 on the basis of business assets belonged to the disbanded Ministry of Petroleum of the People's Republic of China. The primary task of the company owned 100 percent by the state is geological exploration of territories and development of oil and gas onshore and offshore fields.
The company has been active in doing business internationally since 1993. The areas of interest to the company include such countries as Kazakhstan, Azerbaijan, Russia, Venezuela, Oman, Peru, Sudan, and Turkmenistan.
Royal Dutch Shell
Industry: Oil and gas extraction and refining, chemical production.
The British-Dutch oil and gas company ranks 5th in the Fortune Global 500 rating in terms of revenues. It is headquartered in The Hague (Netherlands).
The group of companies was established in 1907 through the merger of Royal Dutch Petroleum Company and The «Shell» Transport and Trading Company Ltd. The union became necessary to be able to compete with the American company Standard Oil in the international market.
The company does oil and gas exploration and extraction in more than 80 countries. Shell fully or partially owns more than 30 oil refinery plants. The company also owns the largest network of fuel filling stations (more than 43,000 stations) around the world. Besides, a large number of chemical plants belong to the company. Its areas of interest also include production of solar batteries and development of other alternative energy sources.
Industry: automobile manufacturing.
Toyota, a Japanese company, started its operation in 1924 and was founded by Sakichi Toyoda. It is interesting that he didn’t even engage in manufacturing automobiles, but producing weaving looms. His son, Kiichiro Toyoda, took an interest in automobile manufacturing and established a division for producing automobiles with the funds received from selling a patent on an intelligent production machine.
Annual sales of automobiles almost reached $249,9 bln. in 2017. At that moment, the car sales in Japan itself declined significantly, which is a testimony to the company’s activity in the global market.
The headquarters is located in Toyota, Aichi, Japan.
Volkswagen Group, a German automobile concern, includes 48 automakers from 15 European countries and 6 countries in America, Asia, and Africa.
The concern produces more than 26,600 cars daily, sells and provides after-sale services in more than 150 countries of the world.
Among divisions of the concern there are such well-known automobile brands as Volkswagen, Audi, Seat, Škoda, Volkswagen Commercial Vehicles, Bentley, Bugatti, Lamborghini, Scania AB, MAN AG, Ducati, Porsche, and ItalDesign Giugiaro.
Volkswagen Group is one of the largest shareholders of Suzuki Motor Corporation, a Japanese company. The headquarters of the company is in Wolfsburg, Germany, where the AutoMuseum Volkswagen is located.
Industry: extraction, processing of oil and gas.
At the beginning of the XXI century, BP began to pay special attention to alternative energy and the issue of reducing emissions to the atmosphere.
BP initiated the “Clean City” campaigns throughout Europe, launched a program for the sale of greenhouse gas emission allowances and expanded the production of solar energy.
A special subdivision for alternative energy was created, the task of which was to expand the company's capabilities in the production of solar, wind, and hydrogen and gas energy.
Industry: Oil and gas industry.
ExxonMobil is the world's largest oil and gas company whose shares are freely traded on the open securities market.
The company operates production facilities and promotes products worldwide, as well as oil and natural gas exploration on six continents.
This company is a leader in the oil and gas industry in almost all areas of energy and petrochemistry.
Berkshire Hathaway Inc.
Industry: insurance, finances, railway transport, utilities, food and non-food products.
The company is known for its permanent owner, an American investor and an entrepreneur Warren Buffett. It’s headquartered in Omaha, Nebraska, USA.
The value of its share is $296,900 which puts it at the top of 10 Most High-Priced Shares List in the world.
- GEICO (care insurance);
- General Re (reinsurance);
- Berkshire Hathaway Primary Group (insurance);
- Berkshire Hathaway Reinsurance Group (insurance and reinsurance);
- BNSF — (railway transport);
- Berkshire Hathaway Energy (electricity and gas supply);
- McLane Company (wholesale commerce).
The number of participants of the annual meeting of its shareholders exceeded 40,000 people in 2015.
That’s why the meeting earned the facetious nickname “Woodstock for Capitalists”.
#11 – #50
Here you can see the top 50 of the most profitable companies in a shorter format:
|12||Samsung Electronics||$211,940 millions|
|15||UnitedHealth Group||$201,159 millions|
|17||CVS Health||$184,765 millions|
|19||EXOR Group||$161,677 millions|
|21||General Motors||$157,311 millions|
|22||Ford Motor||$156,776 millions|
|23||China State Construction Engineering||$156,071 millions|
|24||Hon Hai Precision Industry||$154,699 millions|
|26||Industrial & Commercial Bank of China||$153,021 millions|
|29||Ping An Insurance||$144,197 millions|
|30||Honda Motor||$138,646 millions|
|31||China Construction Bank||$138,594 millions|
|32||Trafigura Group||$136,421 millions|
|34||Cardinal Health||$129,976 millions|
|36||SAIC Motor||$128,819 millions|
|40||Agricultural Bank of China||$122,366 millions|
|41||General Electric||$122,274 millions|
|42||China Life Insurance||$120,224 millions|
|43||Walgreens Boots Alliance||$118,214 millions|
|44||BNP Paribas||$117,375 millions|
|45||Japan Post Holdings||$116,616 millions|
|46||Bank of China||$115,423 millions|
|47||JPMorgan Chase & Co.||$113,899 millions|
|48||Fannie Mae||$112,394 millions|