The year 2020 was marked by the COVID-19 pandemic. In order to mitigate the impact of this difficult economic situation on Polish companies, various liquidity-supporting aid measures were introduced, such as tax and contribution exemptions and deferrals. As a result, despite the extensive economic crisis, payment delays between companies have shortened – however, with these aid measures are to be phased out in 2021, two thirds of companies expect their business activities to deteriorate this year.
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Coface Study: Insolvencies in Romania decreased by 13% in 2020 compared to the previous year and are at the minimum of the last decade
The most recent study by Coface Romania shows that in 2020, 5,564 new insolvency proceedings were opened, with -13% below the level registered in the previous year. Last year also reported the minimums of the last decade in terms of payment incidents (only RON 2.2 billion, -29% vs. 2019) and the regeneration ratio (OUT: IN = 1.19) in the business environment. All these positive developments are exceptional, given that they were recorded in a year with the most severe economic contraction of the last decade in the context of the Covid-19 pandemic.Read More
As it releases its latest quarterly risk Barometer, and its annual Country & Sector Risk Handbook, Coface, a leader in credit insurance, highlights an uneven recovery across countries, sectors of activity, and income levels. Although the performance of China and other Asian economies is boosting global growth, the main mature economies will not return to their pre-crisis GDP levels this year. This rise in inequality, along with public dissatisfaction with the government's handling of the pandemic in many countries, is conducive to the emergence of more frequent potential protests and violence this year.Read More
Turnover: €1,451m, down by -0.6% at constant FX and perimeter
Trade Credit Insurance decreasing by -0.8% at constant scope and FX
Client retention reaches new record levels. New business increasing to €138m
Improving pricing conditions confirmed and lower client activity continues
Following the change in the shareholder base and the arrival of Arch Capital Group Ltd. (Arch) - (NASDAQ: ACGL) - in Coface's capital, COFACE SA's Board of Directors is evolving. Bernardo Sanchez Incera has been appointed Chairman of the Board of Directors.
The transaction between Natixis and Arch for the sale of a stake in Coface's capital, which was announced on 25 February 2020, has received all the necessary approvals for its closing. As a result, Arch now holds 44.8m shares of Coface, representing 29.5% of the company's capital.
Coface Study - Dairy and Cheese Manufacturing Sector: positive evolution of revenues in 2019, with a 5% increase compared to previous year
A new study conducted by Coface Romania on the sector of "Dairy and Cheese Manufacturing” (NACE 1051) indicates a positive evolution of revenues in 2019, which increased with approximately 5% compared to 2018, with a slightly higher profitability. The study aggregated the data of 494 companies that submitted their financial situation for 2019 (as of September 2020) and generated a consolidated turnover of RON 5.4 billion. The weight of the cumulative market share held by the most important 10 players is 66%, which indicates a medium to high degree of concentration.Read More
Coface Study: Retail Sale in Non-specialized Stores Sector – positive evolution of revenues in 2019, with a 10% increase compared to previous year
A new study conducted by Coface Romania on the sector of "Retail sale in non-specialised stores with food, beverages or tobacco predominating” (NACE 4711) indicates a positive evolution of revenues in 2019, which increased with approximately 10% compared to 2018, with a slightly higher profitability. The study aggregated the data of 46.571 companies that submitted their financial situation for 2019 (as of September 2020) and generated a consolidated turnover of RON 79.4 billion. The weight of the cumulative market share held by the most important 10 players is 63%, which indicates a medium to high degree of concentration.Read More
Revenues from the sector of retail with pharmaceutical products in specialized stores increased by 8% in 2019
A new study conducted by Coface Romania on the sector of "Retail with Pharmaceutical Products in Specialized Stores” (NACE 4773) indicates a positive evolution of revenues in 2019, which increased by approximately 8% compared to 2018, with a slightly higher profitability. The study aggregated the data of 3,999 companies that submitted their financial situation for 2019 (as of September 2020) and generated a consolidated turnover of 20.06 billion RON. The weight of the cumulative market share held by the most important 10 players is 33%, which indicates a low degree of concentration.Read More
Coface, a world leader in credit insurance, has signed the LGBT+ Commitment Charter of L’autre cercle, an association that promotes greater LGBT+ inclusion in the workplace. This commitment is part of the broader diversity & inclusion policy in place at Coface, who fully assumes its role as a socially responsible company.Read More
The twelfth CEE Top 500 study provides an outlook on the future and summarizes the region’s economic activity of the previous year, showcasing CEE as a region of prosperity. Moreover, it describes the condition of the 500 largest companies in CEE by their turnoverRead More
As we continue to navigate an uncertain economic context, this successful quarter will allow us to better weather the challenges ahead. :
Some key highlights:
Client retention and new business are at record levels
Positive net production of €36.9 million
Coface reports €28.5m net income for this third quarter
Improved net cost ratio reflects continued cost controls
The annual update of Coface's Political Risk Index, published in the Coface Q3 Barometer, highlights a dual trend: on the one hand, a decrease in the risk of conflict at a global level, but on the other, an increase in the risk of political and social fragility. The latter is exacerbated in the countries most exposed to the coronavirus pandemic.Read More
German companies want to cash in as early as possible, according to the fourth edition of Coface’s survey on corporate payment experience in Germany, conducted in July and early-August 2020, with 753 participating companies located in Germany.
Unsurprisingly, COVID-19 and its effects on the global and German economy is the predominant topic of this survey. One major finding is that German companies are getting worried: companies became cautious in providing payment terms to their clients and less companies are offering payment terms overall and these have shortened, even drastically in some sectors.
Coface launches Trade Credit Advisory, a product dedicated to improving the trade credit management process
Coface Romania supports companies with a unique product on the market, Trade Credit Advisory, which offers a full assessment of trade credit risk management processes. The launch of this product takes place in a context marked by structural changes in the economy. In this context, in-depth knowledge of a company's risk ecosystem, in parallel with the analysis of external evolutions, systemic risks, as well as key macro and microeconomic vectors becomes essential.Read More
The COVID-19 health crisis has had a negative impact on short-term global renewable energy development, and challenges remain in the medium- to long-term, according to a recent Coface study.
Renewables have strengthened rapidly in the last 20 years, particularly in power generation, increasingly gaining market share from traditional energy sources such as coal, oil, and nuclear. The COVID-19 crisis has had a significant impact on this segment of the energy sector, as the pandemic disrupted supply chains and labour availability. Access to funding was also hit hard. These recent trends have affected projects that had already been approved, as well as other projects in the pipeline.
Coface launches Diagnostic, an innovative product that helps companies correctly assess the financial situation of business partners
In the current situation marked by numerous economic challenges, Coface Romania supports companies by launching Diagnostic, a unique product on the business information market in Romania. The new product develops a risk profile of a subject company in a widely addressable language.Read More
COFACE REPORTS A POSITIVE NET INCOME OF €11.3M FOR THE SECOND QUARTER 2020 AND CONTINUES TO IMPLEMENT ITS STRATEGIC PLAN
Turnover for the first semester: €725m, down 0.6% at constant FX and perimeter
Client retention and new business achieve record levels, with a positive net production of €33m
First effects of re-pricing are now visible (+0.2%)
Revenues from services progress by 7%, including information services up by 13%
Client activities continue to slowdown – a trend expected to continue over the following quarters
Here are the main points addressed in this Coface study:
A favourable context
Foreign trade and inclusion in supply chains had already increased for Central & Eastern European (CEE) in recent years, boosted by most of its countries’ decision to join the European Union (EU) in 2004.
• An educated workforce
• Geographical proximity to Western Europe
• Low labour costs
• Relatively good infrastructure
• A stable business climate
• Improving productivity through greater use of automation and "robotization
Here are the main points addressed in this study.
Coface does not expect the sector to recover to fourth quarter 2019 level before 2022.
In Coface’s central scenario, the turnover of listed companies of the global transport sector will be 32% lower in the 4th quarter 2020 and 5% lower in the 4th quarter 2021 than in the 4th quarter 2019.
In the hypothesis of a second wave of the pandemic in the 3rd quarter of 2020, the turnover would be 57% lower in the 4th 2020 and 27% lower in the 4th 2021.
The impact of COVID-19 is all the more important since economic activity was already slowing down before the crisis.
As the COVID-19 epidemic hits the United States very hard, Coface forecasts in its baseline scenario that the country's GDP will contract by 5.6% in 2020, before rebounding by 3.3% in 2021. Nevertheless, this forecast is threatened by the resurgence of the outbreak in several states, which are already pausing or even reversing the resumption of activity after the extensive lockdown of April.