Large companies are counting on last year’s income this year as well

By: Trademagazin Date: 2024. 04. 05. 11:22

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The upward trend of a year ago has been broken, the expected increase in sales revenue of large companies has fallen, while a decrease in profit is still expected, according to the results of the K&H large company growth index. On average, companies expect an increase in revenue of only 0.6 percent, but a decrease in profit of 1.5 percent this year. The restrained financial expectations also keep investment plans low, mainly technological developments are expected this year. Only 42 percent of companies are preparing to develop over the next year, which is the fourth lowest rate in the last 20 quarters.

The financial expectations of large companies fell again. This is shown by the latest K&H large company growth index, which examines the expectations and plans for the next year of Hungarian companies with an annual turnover of over two billion forints every quarter.

“Based on the data from the last quarter of 2023, companies are expecting a revenue increase of only 0.6 percent this year, which is a significant drop compared to the 1.8 percent in the previous quarter. At the same time, the decline also means that the increasing trend of a year ago has been broken in the dynamics of the expected sales revenue change, which is not too strong anyway. So this year, the companies are calculating with practically unchanged income. In terms of profit, the estimates are even more cautious. Companies continue to plan for a decrease in profits, the rate of which has also dropped from 0.6 percent to 1.5 percent. With this, the sector has been expecting declining profits for two years now”

– said Gábor Rajna, head of K&H’s Corporate Division.