EY ROMANIA

  |  28.06.2013

Romanian companies are confident their turnover will increase in 2013

Although on a downward trend from January 2013, responses on growth prospects remain significant in June 2013: 69% of Romanian business leaders think they will have an increase in turnover this year. However, the percentage of companies expecting moderate growth, between 5-10%, decreased by 5 percentage points from January to June 2013, while the percentage of companies anticipating negative growth between -5 and -10% also increased by 5 percentage points.

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As a strategy to raise sales, most companies have chosen to introduce new products and services and the opening of new distribution channels. Regarding the decline in prices, there is a reduction of 8 percentage points in the focus on this factor, from 18% in January 2013, to 10% in June 2013.

 

Meanwhile, business leaders’ confidence in the industry their companies operate in decreased significantly between January and June: the proportion of companies not at all confident in the potential of their industry this year increased by 17 percentage points, up to 33% of companies, while the percentage of companies somewhat confident decreased from 35% to 23% over the same period – according to the study "A new vision for growth - June 2013" published today by Ernst & Young.

 

 

What are your expectations regarding the increase in turnover in 2013?

 

Referring to the estimates on profit growth, these also remain positive, staying in the same parameters as in the January 2013 edition. In January, 68% of respondent companies expected increased profits in 2013, in June the percentage of these companies fell by 2 percentage points to 66%. Of the total companies, 11% actually expect an increase in profits by 30%.

 

The Ernst & Young study is based on a survey conducted during the period 1 - 14 June 2013. The report analyzes the responses of 103 top executives, presenting their perceptions on the Romanian business prospects in 2013.

 

Funding continues to be mainly through bank loans

 

The preferred financing instrument for investment in the next 6 months is still through bank credit for 45% of companies both in January and in June, while venture capital investment has a decrease in preferences, from 8% in January to 6% in June 2013.

 

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