Profitability Dynamics of Food Companies Amidst COVID-19 Challenges: Evidence From Serbia

Abstract

This study examines the impact of the COVID-19 pandemic on the profitability of food companies in Serbia. Lockdown measures, production, and supply chain disruptions, shifts in consumer behavior, and increased operational costs significantly impacted the food industry. The research was conducted on financial data from 1661 companies operating from 2018 to 2022. The assessment of the panel data model confirmed the presence of a negative and statistically significant effect of the Covid-19 epidemic on profitability as measured by return on total assets (ROA).