Company growth outlook

Key facts

• Almost half (47%) of CFOs are optimistic about financial prospects, while only 23% express pessimism.
  
• 35% of CFOs expect operating margins to increase, almost the same proportion predict it will stay at the same level.
  
• The proportion of CFOs anticipating revenues to increase in 2021 (53%) was 7pp lower than in 2020.

Financial prospects

When compared with six months ago (three months for Poland), 47% of CFOs are more optimistic regarding financial prospects for their companies. This is up 13% from our previous edition. This upwards trend is also evident when we look at EU countries and the Eurozone. In 2019, 38% of CFOs in the Eurozone told us they were optimistic regarding financial prospects for their companies. In 2020, this optimism fell to 28%, and then bounced back to 45% in 2021. There is a similar pattern of optimism among EU countries, as well.

Revenues and Operating Margins

The proportion of CFOs anticipating revenues to increase in 2021 (53%) was 7pp lower than in 2020. There is also a downwards trend in most of the industries we surveyed (except for Life Sciences and Manufacturing) with the Technology, Media, Telecommunication sector experiencing the biggest fall in net balance (from 69% in 2020 to 31% in 2021).

There is an even division between predictions for operating margins that businesses will achieve over the next 12 months. 35% of CFOs expect operating margins to increase, almost the same proportion predict it will stay at the same level and 31% anticipate it will decrease.

Additional Topics Covered in this Chapter of the Report:

• CAPEX Outlook
  
• Employment
  
• Debt Servicing
  
• Strategic Priorities
  
• Gearing Levels