K&H: Companies have not yet sensed a drop in inflation

By: Trademagazin Date: 2024. 06. 21. 12:58

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Inflation continues to determine the profitability of most large domestic companies, even though it has already dropped below 4 percent. Based on the results of the K&H large company growth index, which shows the annual expectations of large domestic companies, this is still the biggest obstacle to the operation of the majority of companies, precisely because they cannot incorporate the increase in purchase prices into their sales prices.

Based on the results of the K&H large company growth index, which shows the outlook for the next year for Hungarian companies with an annual sales revenue of over two billion forints, inflation is still the most important determinant of companies’ operations.

“In the first quarter, the proportion of companies where the rise in consumer prices is expected to have a major impact on profitability in the next 12 months increased from 52 to 60 percent. In other words, despite the fact that inflation has fallen below 4 percent since January, it can still affect the profitability of large companies the most. This is followed by changes in supplier prices and the forint exchange rate, as well as the relationship with domestic customers – these factors are decisive for almost half of the companies”

– informed Péter Hodina, head of the K&H Corporate Banking Sales Directorate, regarding the current situation of large domestic companies.