Deloitte CE Top 500: Strong consumer appetite keeps Romania on top has been added to your bookmarks.
Deloitte CE Top 500: Strong consumer appetite keeps Romania on top
On the back of an increased appetite for consumption, retail has been the main driver for Romania’s fourth place in the 10th edition of Deloitte’s CE Top 500 which stands under the digital transformation sign, where the aggregated revenue of the Romanian companies ranked has reached 46.4 billion EUR, slightly above the 2014 level.
Retailers saw the biggest growth of 17.8%, representing 20% of all ranked Romanian companies.
During 2015, the median annual euro-denominated revenue growth rate in Romania was 6%, higher than a 5.3% the previous year. With 46 companies present in the ranking, the same as last year, Romania has preserved its position. Also, 25 companies from Romania improved their ranking and five new entries made it to the top.
The combined revenues of all companies in the CE Top 500 ranking totaled 685 billion EUR, representing a 1.7% year-on-year increase from the 682 billion EUR recorded a year before. In addition, the minimum annual revenue for a company to rank among the region’s top 500 companies rose by 3% to 473 million EUR. This was the 10th time that Deloitte has conducted an analysis of the largest companies in 18 countries across Central Europe and Ukraine (500 companies, 50 banks and 50 insurance companies).
Ahmed Hassan, Country Managing Partner Deloitte Romania said: “This year’s ranking has confirmed that Romania is on an upward trend along with the entire CE region. The country has to continue on building on its infrastructure and reform its education and health systems so as to also bring more value added services and attract further investment in production.”
Automobile Dacia is the best placed in the ranking, taking 25th place with a growth of 1.7% in revenues (4.3 bn EUR) followed by OMV Petrom on the 27th (4 bn EUR) and Rompetrol Rafinare on 52th place (2.5 bn EUR).
In terms of generated revenue, though strongly affected by oil price decline, energy & resources has been an important contributor to Romania’s ranking by bringing 17 billion EUR, followed by consumer business with 15 billion EUR.
Tinmar (up 92 places to the 308th), Lidl (up by 79 places to 185th) and Mega Image (up 74 places to 266th) were the biggest Romanian jumpers. Profi Rom Food was the company with the biggest revenue growth rate of 38.1%.
Lars Wiechen, Partner-in-Charge Deloitte Financial Advisory said: “Growth has been driven by strong exports and strong industrial production in 2013 and 2014 and by gradual recovery of domestic demand in 2014. 2015 has been described by surging consumption and recovering investment. Romania is expected to outperform other CEE countries in 2016 and robust growth is forecasted for the following years."
When compiling the CE Top 500 report for 2016, Deloitte has asked many of the region’s business leaders about their views on and experience with digitalization and 17% of the participating companies from Romania said that digital transformation was a priority to the business and look to integrate the latest technologies to the benefit of the customers.
“Creating an effective digital culture is an intentional effort. Digitally maturing companies are constantly cultivating their cultures. Leaders of digitally maturing companies say their companies are actively engaged in efforts to bolster risk taking, agility, and collaboration,” said Cosmin Costea, Strategy Director Deloitte Digital.
The top five places in the CE Top 500 ranking are the same as last year. PKN Orlen (Poland) retains its leadership position despite a 17.2% decline in revenue. MOL (Hungary) is second once more, despite a 15.6% fall in its revenue. Škoda Auto from the Czech Republic is third (with a rise of 6.3%). Fourth and fifth places go to Jeronimo Martins Poland and Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) respectively.
The Central Europe Top 500 ranking is compiled based on individual and consolidated company revenues for the fiscal year ending 2015. The 10th edition of the Deloitte CE Top 500 report ranking the largest companies in 18 countries of Central and Eastern Europe and Ukraine by revenues reported for the previous year and the most important banks and insurance companies by assets and by gross written premiums. The ranking comprises 500 Top companies, 50 Top banks and 50 Top insurance companies.