ICAP Romania and the Association of Risk Professionals analyzed the universe of companies with financial data as of December 2020. From the approximately 780,000 companies with financial results available, the study selected about 550,000 with financial data each year from 2017-2020. The 780,000 companies would represent about 98%, and the 550,000 represent about 71% of the universe estimated with fine data as of December 2020. The selected sample contains companies of all sizes and industries.
In terms of turnover, the year 2020 is seriously affected on the analyzed sample, because the cumulated turnover is lower by 2% in 2020 compared to 2019; starting from the increase of 13% (+163 bln RON) in the period 2017-2018, there was an increase of 9% (+129 bln RON) in the period 2018-2019 but in the period 2019-2020 there was a decrease of 2% (-38.5 bln ron).
And as the number of companies with increasing turnover vs. the number of comp with decreasing turnover, the ratio between them has seen a significant change; thus, in the period 2017-2018, the companies that registered an increase in turnover represent 48% compared to 31% of the companies that registered a decrease in turnover, then in the period 2018-2019 the ratio being 46% compared to 33% and in the period 2019-2020, the ratio is reversed, only 31% of companies registered an increase in turnover compared to 46% compared to lower turnovers.
In terms of profit (EBITDA), the analyzed sample registered a slight evolution in 2020 compared to previous periods (and compared to the evolution of turnover); in the period 2017-2018 cumulative EBITDA registered an increase of 11% (+16 bln RON), followed in the period 2018-2019 by an increase of 11% (+ 18 bln RON) and in the period 2019-2020 of only 1% (+1.7 bln ron).
The share of companies with EBITDA growth deteriorates slightly in 2020, starting from 50% companies with EBITDA growth vs 39% companies with EBITDA decrease in the periods 2017-2019 and reaching a ratio of 45% companies with EBITDA growth vs 42% companies with decrease EBITDA in the period 2019-2020; also, in the analyzed period there is a continuous increase of the accumulated positive EBITDA values, in the period 2017-2018 by 11%, in the period 2018-2019 by 10% and in the period 2019-2020 by only 1%.
The number of companies with positive EBITDA and negative EBITDA is approximately similar in all the analyzed periods, with a small decrease in the number of companies with positive EBITDA in 2020 (-4% compared to the previous increase of 0.2-1%) and the number of companies with negative EBITDA increased by 4% compared to the reduction by 6% in previous years; however, the ratio between the number of companies with positive EBITDA vs. no. Comp with negative EBITDA is a beneficial one with a slightly downward trend, starting from 68% vs 28% in 2017 to 60% vs 26% in 2020.
And according to the number of employees reported, the values accumulated in 2020 are lower by 5%, with approximately 200,000 fewer employees than the previous period. At the level of the analyzed sample, we can say that productivity was slightly affected in 2020, by a reduction in the growth rate of turnover, the trend being slightly decreasing but associated with a reduction in the number of companies increasing turnover in 2020.
However, in terms of profitability (EBITDA) the analyzed sample registered increasing numerical and percentage values, favorable weights and trends, healthier, either due to internal policies (cost reduction, employees), or due to government support policies (deferrals, investment funds ); important contributions to the results of the year affected by the pandemic also had the internal strategies, the managerial qualities, as well as the industries in which it operates, because at the same time there were spectacular increases as well as significant decreases in the same fields.
According to the industries, the analysis also highlights which sectors were very affected and could not overcome the situation generated by the pandemic as well as those that managed to maintain, develop or even perform.
Industries whose cumulative turnover was much lower than in previous periods, registering significant percentage decreases are:
CULTURAL AND RECREATIONAL SHOW ACTIVITIES -37% Versus HEALTH +7%
HOTELS AND RESTAURANTS -35% Vs. ACTIVITIES OF EXTRATERITORIAL ORGANIZATIONS AND BODIES +12%
EXTRACTIVE INDUSTRY -21% Vs. Public administration and defense; social insurance in the public system +14%
And numerically, they registered the biggest decreases / increases of the turnover, the companies from:
MANUFACTURING INDUSTRY (23,729,611,818) VERSUS INFORMATION AND COMMUNICATIONS 3,069,075,355
HOTELS AND RESTAURANTS (8,508,347,131) VS. WHOLESALE AND RETAIL TRADE; …. 3,098,845,696
EXTRACTIVE INDUSTRY (6,637,916,940) Vs. CONSTRUCTIONS 10,597,368,256
If we analyze the profit side, there are industries very affected by EBITDA (percentage):
CULTURAL AND RECREATIONAL SHOW ACTIVITIES -59%
HOTELS AND RESTAURANTS -55%
EXTRACTIVE INDUSTRY -36%
And numerically, the biggest variations are at:
EXTRACTIVE INDUSTRY (3,611,850,826)
HOTELS AND RESTAURANTS (2,869,968,709) Vs. Production and supply of electricity and heat, hot water, gas and air conditioning 1,829,060,462
CULTURAL AND RECREATIONAL ACTIVITIES (1,306,250,059) Vs. WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR VEHICLES AND MOTORCYCLES 4,148,235,817
Regarding the number of employees, there are industries that have significantly reduced their staff:
CULTURAL AND RECREATIONAL SHOW ACTIVITIES -22%
HOTELS AND RESTAURANTS -19%
OTHER SERVICE ACTIVITIES -12%
But there are also industries where many more employees have been reported:
PUBLIC ADMINISTRATION AND DEFENSE; SOCIAL INSURANCE FROM THE PUBLIC SYSTEM (+ 42%)
There are industries in which numerically, employees are significantly fewer than in previous years:
MANUFACTURING INDUSTRY (74,425)
WHOLESALE AND RETAIL TRADE; … (34,405)
HOTELS AND RESTAURANTS (31,199)
TRANSPORTATION AND STORAGE (17,485)
ADMINISTRATIVE SERVICES ACTIVITIES AND SUPPORT SERVICES ACTIVITIES (16,850)
But there are also areas in which more employees were registered than last year:
Public administration and defense; social insurance from the public system 1,817
INFORMATION AND COMMUNICATIONS 2,733
SMEs in Romania
We observe a similar evolution of SMEs in 2020, close to the national average but in some respects even better (a smaller decrease in the cumulative business card and a higher overall profitability).
Cumulated turnover is slightly declining nationally in 2020 compared to previous periods; starting from the increase of 12% (+80 bln RON) in the period 2017-2018, there was an increase of 9% (+68 bln RON) in the period 2018-2019 but in the period 2019-2020 there was a decrease of 3% (-22 bln ron).
At the level of the analyzed sample, we can say that productivity was affected in 2020, by a reduction in the growth rate of turnover, the trend being slightly decreasing but associated with a reduction in the number of companies with turnover growth in 2020 ;
In terms of profit (EBITDA), the analyzed sample registered a slight evolution in 2020 compared to previous periods (and compared to the evolution of turnover); in the period 2017-2018 cumulative EBITDA registered an increase of 14% (+12 bln RON), followed in the period 2018-2019 by an increase of 15% (+ 14 bln RON) and in the period 2019-2020 of only 2% +2 bln ron);
The values of profitability, weights and favorable trends, healthier, were probably due to domestic policies (cost reduction, employees), government policies (deferrals, investment funds).
ICAP Romania is part of the ICAP group of companies, which offers B2B services through the 16 companies with branches in Romania, Greece, Bulgaria, Cyprus and Serbia.