Deloitte Central Europe Top 500: Romania Outperforms the Region

Romania remains one of the most attractive investment spots in the region, as shown by the surge in yearly revenue growth of Romanian companies present in Deloitte Central Europe Top 500. The largest Romanian companies present in Deloitte Central Europe Top 500 saw a median annual revenue growth of 5.3% compared to the regional rate of just 0.3%.The number of companies from Romania present in the ranking increased to 46 as compared to 42 in 2014, placing the country fourth, one position higher than the year before. The combined revenues of the companies from Romania rose by almost 7% to 46 billion EUR. By way of contrast, the combined revenues of all companies in the Top 500 dropped by 1.8% to 682 billion EUR as compared to last year. Also, 30 companies from Romania improved their ranking and eight new entries made it to the top.

“Romania’s place in the ranking clearly reflects the country’s well positioning and attractiveness for investment. With a steady microeconomic growth, Romania ranks among the regional champions in terms of economic growth. The momentum is expected to continue but that depends very much on the country’s political, legal and fiscal stability, which are key elements for a more significant economic and business environment boost,” said Ahmed Hassan, Country Managing Partner Deloitte Romania.

The 9th edition of Deloitte Central Europe Top 500 was conducted among 18 countries across Central Europe and Ukraine (500 companies, 50 banks and 50 insurance companies).

Energy and resources has remained the industry which contributed most to the country’s ranking with total revenues of 18.943 billion EUR followed by Consumer Business and Transportation with 13.378 billion EUR, Manufacturing with 9.526 billion EUR and Technology, Media and Telecommunication with 2.849 billion EUR and Life Sciences with 1.311 billion EUR.

The biggest climb up in Romania belongs to Auchan, which jumped 217 places to 237th while Enel, Oscar Downstream and Interagro did not make it into the ranking.

As regards the ownership of the companies listed, the majority are multinational (36) and only three entities represent local entrepreneurs.

“Statistics show that the entrepreneurial activity in Romania has reached its peak and the rate of those intending to start a new business within three years is the highest in the region. However, the fact that we have only three Romanian entities owned by local entrepreneurs in the ranking is a sign that the availability of resources is still low and public policies are not encouraging enough so as to put money at risk,” said George Mucibabici, Chairman Deloitte Romania.

According to Hein van Dam, Partner-in-Charge Financial Advisory Practice Deloitte Romania, in the next couple of years there will be more companies owned by local entrepreneurs that will be represented in the ranking. “Romania may become a much more interesting player on the market. If it focuses on the fundamentals in attracting investment, there is no reason why Romania should not become the second largest Central European economy after Poland.”

The ranking of the largest banks and insurance firms shows the same number as the year before: six banks and four insurance companies. With assets totaling 51.9 billion EUR, the banking sector registered a slight increase from the 51.1 billion EUR the year before. The ranking remained the same though with Banca Comerciala Romana securing the pole position followed by BRD- Groupe Societe Generale and Banca Transilvania.

Highlights Deloitte Central Europe Top 500, 2015:

• For the first time in four years, there has been an increase in the number of companies in this ranking seeing revenue growth (52% vs. 49.8% in 2013)
• The average revenue increased by 0.3%, as compared to almost no change in 2013
• The total revenues of all the companies in the ranking slipped by 1.8% (vs. a decline of 0.4% last year) to 682 billion EUR
• Additionally, available financial results from Q1 2015 suggest economic recovery, with a 1.7% total increase in EUR and 3.6% in local currencies, reflecting the negative influence of the foreign exchange market
• The key sectors represented by the largest companies in the region (consumer goods, transport, energy and resources and manufacturing) continue to account for over 90% of the revenue generated
• The top three places in the ranking remained unchanged from last year. Despite a 5.5% fall in revenues in EUR (down 5.9% in PLN), PKN Orlen has retained its leadership position, followed by MOL from Hungary and Skoda Auto from the Czech Republic.

Sustainability matters
When compiling the CE TOP 500 report, Deloitte also asked many of the region’s senior business figures about what sustainability and sustainable growth really mean to them and their organisations. The majority of companies admitted that in today’s economy it is impossible to achieve growth without social approval. In this respect, companies are investing more and more in sustainability initiatives and corporate responsibility is a key component to ensure their success, not just for the next one to five years but for the long-term future.

The Central Europe Top 500 ranking is compiled based on individual and consolidated company revenues for the fiscal year ending 2014. The 9th 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.

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