This is how companies see the development of their financial results
The domestic SME sector is planning slightly higher sales and profit growth compared to the beginning of the year, but expectations are still far below inflation: an average increase of 8.6 percent in revenue and 4.4 percent in real profit is likely over the next year. The latest results of the K&H SME confidence index also show that the not very encouraging financial expectations are holding back the investment intention. Currently, 6 out of 10 companies are planning development in the next year, which mainly means IT investments.
Companies do not dare to dream of large-scale sales and profit growth: this is shown by the latest results for the second quarter of 2023 of the K&H SME confidence index, which indicates the expectations of Hungarian micro, small and medium-sized enterprises for the next year. “The domestic companies expect an 8.6 percent increase in sales revenue and a 4.4 percent increase in profit. The rate of expected revenue growth has hardly changed over the past year, and in terms of profit, there has also been a small correction compared to the 3.3 percent in the previous quarter,” said Zoltán Rammacher, head of marketing and sales at K&H SME.
“After the peak in January, the rate of inflation is continuously decreasing. Most recently, consumer prices rose by 16.4 percent year-on-year in August, which means a 1.2 percentage point slowdown compared to the previous month, so we can hardly expect single-digit inflation in the coming months. In light of this, the companies’ financial expectations cannot be said to be too strong”
– added the expert.
Related news
Slowdown and price increase at the same time – this is how the milk market will develop in the summer
The dairy sector is experiencing both international price increases and…
Read more >NGM: decisions have already been made on the development plans of more than fifty companies in the Demján Sándor Capital Program
Despite pressure from Brussels, the government is doing everything it…
Read more >K&H Bank wins the Euromoney Awards for Excellence 2025 “Best Digital Bank” award in Hungary
K&H Group has won this award from Euromoney for two…
Read more >Related news
International survey: travel appetite in Europe at record high despite global tensions
Despite climate change, global uncertainties and geopolitical turmoil, travel is…
Read more >New survey: consumers don’t want toxic chemicals
A new survey across five countries has revealed serious concerns…
Read more >Körszálló is reborn under the Marriott Residences brand.
The iconic landmark of the Buda skyline, the Körszálló, is…
Read more >