Study - Growth of the top 100 German companies weakens
According to a study,Germany's top 100 listed companies have felt the effects of the difficult business environment this year. According to data from auditing firm EY, 66 of the 100 companies with the highest turnover recorded an increase in revenue in the first nine months, while 34 recorded a decline compared to the same period last year. In the previous year, almost all companies (93%) had increased their turnover. EY does not expect any major leaps in growth in the coming year.
"The headwind is increasing," said Henrik Ahlers, CEO of EY Germany. "Many companies have only grown slightly recently - if at all - often with growth rates below the rate of inflation." The global political uncertainties and wars led to considerable uncertainty among both companies and the population.
Growth driver automotive industry
According to the data, the automotive industry was still the growth driver of the Top 100 this year, with turnover increasing by 11% in the first nine months. However, the air is getting thinner and thinner for the industry in view of sluggish global new car sales, said Ahlers.
According to the figures, other industrial companies recorded an overall increase in turnover of 5 percent in the first three quarters, while trading companies recorded an increase of 4 percent. Things were worse for the healthcare sector, which recorded a 12% drop in revenue following the coronavirus boom. Logistics companies shrank by 14%, while the chemical industry recorded a drop of 20%. The sharpest drop in turnover was recorded by energy suppliers at 44% due to the significant fall in electricity prices.
The combined operating result (EBIT) of the groups rose sharply by 32% to a good 135 billion euros compared to the same period last year. However, the increase was primarily due to the record loss of almost 45 billion euros incurred by the energy group Uniper in the wake of the gas crisis in 2022. This pushed the overall balance sheet down at the time. If the effect is excluded, this would result in a decline in total profit of 8 percent in the first three quarters of 2023.
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- Despite the challenging economic situation in Germany, young and serious leaders like Henrik Ahlers, the CEO of EY Germany, are navigating their companies through the turn of the year, facing global political uncertainties and struggles in various industries.
- This year, Frankfurt on the Main-based companies, including the top 100, are grappling with decreased growth rates, as reported by the study, underscoring the need for innovative strategies to overcome the challenges ahead in the New Year.
- As Henrik Ahlers, the head of EY Germany, observed, even industries such as automotive, once a growth driver, are encountering difficulties, with companies in Frankfurt on the Main and beyond requiring a broader perspective and commitment to adapt and thrive in the evolving German economic landscape.
Source: www.stern.de
