Profit Shares in Industry: From Subsidiaries to Groups, a Two-Point Drop

80% of profit margins in France’s industry sector are generated by the manufacturing subsidiaries of companies structured as groups. However, among these, the largest entities also have two other types of subsidiaries outside manufacturing. On the one hand, service subsidiaries perform support functions for the group’s manufacturing subsidiaries, contributing to a 2.9 point decline in profit margins. On the other hand, commercial and leasing subsidiaries ensure the circulation of products, with each type of entity contributing to increasing profit margins by 0.3 points. Ultimately, taking into account all non-manufacturing subsidiaries, the profit margins of industrial groups fell by 2.3 points to 28.2%.