K&H survey: large companies are expecting less and less profit

By: Trademagazin Date: 2023. 03. 21. 11:43

Large companies do not expect sales and profit growth this year. Companies have been expecting declining profits for more than a year, which has now reached a negative record, and in addition, the expected change in sales revenue is also negative – the bank explained the latest results of the K&H large company growth index in its summary sent to MTI on Tuesday.

On average, the companies are planning a profit of almost 5 percent and a 0.5 percent decrease in sales this year. The weaker financial results also strongly restrain the planned investments, only 37 percent of the companies are preparing for improvements this year, which is the lowest value of the last 1.5 years.

The K&H large company growth index examines the expectations for the next year of companies with a turnover of over HUF 2 billion every quarter.

The 0.5 percent decrease in income expected in the survey for the last quarter of 2022 is a slight improvement compared to the low point of the previous quarter (minus 1.8 percent). The reason for the moderate easing is that those who expected an increase or decrease in income until now, now expect stagnation (73 percent). At the same time, this indicator has not had a negative sign in two consecutive quarters, not even in the first year of the coronavirus epidemic – Gábor Rajna, head of the K&H corporate clients division, explained the results of the survey.