Deloitte CE TOP 500: Encouraging economic signals are undermined by recent slowdown in company revenue growth rates
In the CE TOP500 ranking presented by international audit and consulting company Deloitte, the biggest companies reported median revenue growth of 9.8% during 2011, continuing the positive trend of 2010. In addition, the combined revenues of the region’s leading 500 companies reached ca. EUR 707 billion in 2011 – returning to the level achieved in 2008 before the region felt the impact of the global crisis.
In 2011, CE TOP500 rankings include 12 Lithuanian companies or company groups: Orlen Lietuva AB, Vilniaus prekyba, Maxima grupė, Koncernas Achemos grupė, Visagino atominė elektrinė UAB, Lukoil Baltija UAB, LESTO AB, Palink UAB, Achema AB, Lietuvos dujos AB, Sanitex UAB and Indorama Polymers Europe UAB.
This increase in number (9 companies in 2010) is partly a result of consolidation processes in Energy sector (merger of distribution networks and consolidation of VAE group). However there are also some new companies on the list, namely Sanitex AB and Indorama Polymers Europe UAB, with 25% and 30% revenue increase in 2011 respectively.
If compared with 2010, the revenues of CE TOP500 companies increased in approximately 10-12% in 2011. The revenues of Lithuanian companies increased significantly as well, except LESTO AB (VAE group accordingly), the reveues of which decreased in 7.6% (VAE revenues decreased in 99%). The main reason of this decrease was caused by liberalisation of Electricity market and lower electricity sales as a result.
The greatest growth among Lithuanian companies was Achema AB, the revenue of which increased in 96% in 2011. This significantly exceeded the average growth of 17-19% in CE TOP500. The increase in Achema AB turnover was mainly influenced by fertilizer sales increase and successful new sale market development.
These are some of the key findings of the sixth edition of the Deloitte CE TOP500 report, which finds Central European business leaders in pensive mood as they tackle the twin challenges of growing economic difficulties affecting some of their key export markets and the ongoing crisis in the eurozone.
According to Deloitte Central Europe CEO Alastair Teare, “Even though countries in our region are faring better than many elsewhere, this does not mean that we are in any way immune from the impact of the almost daily turbulence that continues to shake our interconnected economies.
“In this challenging environment, there is one consistent driver that influences the decisions that businesses must make every day on how they respond to such issues: leadership. This is why throughout this year’s report we are focusing on the critical importance of leadership at all levels in achieving organisational and market success. As you read the perspectives of Deloitte partners and executives from some of the region’s largest companies, I am confident you will see how the qualities of good leadership can and do permeate every organisation.”
According to Deloitte Lithuania Managing Partner Saulius Bakas, “Inspite of economic uncertainties in Euro zone, the Lithuanian companies that fall into CE TOP500 had a great revenue increase. This shows that these companies managed to adjust themselves to economic changes, derive benefit from the situation and remain competitive. This inspires and reveals that companies are able to grow and be successful even in pesimistic climate.”
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/lt/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's approximately 182,000 professionals are committed to becoming the standard of excellence.
© 2012 Deloitte Lithuania