Deloitte Central Europe Top 500, 2013

According to the year-end results for 2012, the largest Ukrainian companies managed to outpace their European peers in terms of revenue growth, despite slow economic development in Ukraine and across Europe. According to the annual Deloitte ranking of the Top 500 largest companies in Central and Eastern Europe for 2013, Ukrainian companies increased their revenues by an average of 16.2% in EUR equivalent (7.5% in UAH) compared to 2011.

Moreover, 39 out of 51 Ukrainian companies included in the rating posted an increase in their revenues, thus demonstrating higher growth dynamics compared to the region as a whole. The average increase in the income of all companies included in the Top 500 at year-end amounted to 3.26%.

This year, four Ukrainian companies made it into the Top 10 largest companies in the region. Ukrainian energy company DTEK entered the Top 10 for the first time following a 125.3% increase in revenue, which moved the company all the way from 32nd to 7th place.

It is worth noting that DTEK has outrun other companies all across the region in terms of its revenue growth rate. Metinvest, which is part of the same holding as DTEK, retained its place in the Top 10 despite a slight decline in revenue compared to 2011. As in previous years, the state-owned companies NAK Naftogaz and Energorynok continue to hold their positions in the Top 10.  

According to the results of Q1 2013, Ukrainian and European companies demonstrated a slowdown in revenue growth; the number of enterprises posting positive growth dynamics declined from 59% to 49%. At the same time, the ranking overview marked an overall improvement of business confidence.

Rankings by industry

A strong growth rate was posted across all industries presented in the rating, with Ukrainian companies demonstrating higher growth than the majority of participating European enterprises.  

Traditionally, Energy and Resources (13) is the most profitable sector, accounting for almost 40% of the total revenues generated. During 2012, Energy and Resources companies increased their revenues by 2.7% in Europe and 22.4% in Ukraine.    

The Consumer Business and Transportation sector (22), represented in the rankings by the largest number of companies, posted the highest revenue increase both in Ukraine (23.7%) and across Europe (4.8%). Out of the 10 Ukrainian companies who entered the rankings for the first time this year, seven of them operate in this sector.    

In the Manufacturing sector (13), the revenue increase of Ukrainian companies amounted to 8% (4% across the region).      

Ukrainian Technology, Media and Telecommunications companies (3) posted a 14.3% increase in revenue, despite the declining revenue trend demonstrated by other companies in the region over the past five years.   
According to Deloitte, the strong results posted by Ukrainian companies in 2012 were substantially influenced by the around 10% depreciation of the Euro against the Hryvnia and the increase in prices of certain type of goods. Domestic demand, which has demonstrated strong growth over the past few years, was another key factor.  

“Although the average overall performance result of Ukrainian companies is very high, especially given the current economic situation, by analysing each company separately, we can see that the development of business is very uneven. While some companies increase their revenues by 50% or more, others show a profound decline”, said Vladimir Vakht, Managing Partner at Deloitte Ukraine. Vladimir also noted that five Ukrainian companies accounted for 60% of the overall revenue generated by Ukrainian businesses.

Methodology

The rankings of the 500 largest companies in Central and Eastern Europe were prepared based on revenue data for the fiscal year 2012. Revenues were calculated in Euro at the relevant average exchange rates.
The rankings of Ukrainian companies were prepared based on data acquired through questionnaires completed by the companies’ representatives, as well as from publicly available data. This list does not include companies invited to participate in the survey which refused to take part, having submitted a notification on their refusal in writing or verbally. In some cases, financial data was obtained from open sources.

Data acquired from public sources has not been confirmed by representatives of the companies. Deloitte is not liable for the accuracy or completeness of information obtained from public sources or provided by companies.