bisnode southern markets bulletin october 2016new business start-ups – september 2016 the number...
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Bisnode Southern Markets Bulletin October 2016
Main topic:Main topic:
PROFITABILITY IN THE REGION IMPROVED COMPARED TO 2014PROFITABILITY IN THE REGION IMPROVED COMPARED TO 2014
Bisnode Southern Markets Bulletin October 2016
CONTENT
�e Bisnode Bulletin is free of charge.
Publisher:BISNODE SOUTHERN MARKETS
Lead analysts: GORAN DOLENC, MSc (Main topic), SANJA FILIPIČ, MSc (Micro and Macro overview)
Editorial board:ESTER ŽIGON, Bisnode Slovenia MEDIADE®
Director: MARIA ANSELMI
Graphic design: IGOR LOGAR, IGORDESIGN
Photos:ARNELA HADŽIPASIĆ, Bisnode Slovenia
Sources: DUN & BRADSTREET, BISNODE BOSNIA AND HERZEGOVINA,BISNODE CROATIA, BISNODE SERBIA, BISNODE SLOVENIA
Photo on the front cover:DRAGANA DJURIĆ, Customer Care
Photo on the back cover:JANKO KLEMENČIČ, Account Manager
EDITORIAL
WORLD WATCH
MICRO:Start-ups, deregistrations, insolvency proceedings, blockings
MACRO:GDP, unemployment rate, inflation
MAIN TOPIC:Profitability in the region improved compared to 2014
Bisnode SM Bulletin October 2016 3EDITORIAL
Editorial
YOUR ANALYTICAL PARTNER IN THE DIGITAL ERA
generalna direktorica Bisnode Southern Markets
In September, Bisnode conducted an analysis based on the results of an A.T. Kearney survey with the aim of establishing how companies’ investments in technological development are reflected in their performance. The analysis shows the better performance and profitability of companies that are the technologically most advanced, with lower operational risks compared to technologically medium- or low-developed companies. In all aspects of the analysis, technologically advanced companies were assessed as being better or at least equal to their technologically less advanced counterparts.
The digital era is already with us. I am confident that Bisnode is your true analytical partner in meeting the challenges of the digital world we are living in. We are pioneering smart data to enable our customers to make smart decisions. How do we do this? We are a knowledge company full of data experts and we believe in the saying that ‘sharing means caring’. This explains why Bisnode experts are sharing knowledge regionally and – thanks to our partner Dun and Bradstreet – also worldwide. Greater quality information to give you a better insight.
Data are a natural resource of our time. Bisnode delivers you smart data – data with a purpose – that are premium quality and it ensures your data are managed securely and with integrity.
And what have we detected in our Bisnode SM region this time? Good news! In Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro profitability improved in 2015 compared to 2014. For an in-depth analysis, read the Main topic.
Greater quality information to give you a better insight.
6 MAIN TOPICBisnode SM Bulletin October 2016
Source: Bisnode Southern Markets
PROFITABILITY IN THE REGION IMPROVED COMPARED TO 2014Profitability is one of the most important indicators of a company’s performance. From this point of view, we usually rely on two different indicators: return on assets and return on equity. The present analysis was conducted with the aim of checking the average return on assets and return on equity in 2015 achieved by limited liability companies (d.o.o.) and public limited companies (d.d.) in Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro.
A CRASH COURSE IN PROFITABILITY
HOW PROFITABLE ARE REGIONAL ECONOMIES?
Main topic
Bisnode notices: While other economies generated profit in 2015, which accordingly means a positive ROA and ROE, Montenegro finished in the red, mainly due to huge losses in the financial and insurance industry. The biggest difference between ROA and ROE was noted in Croatia, given it has the largest share of debt in sources of finance. On the other hand, most activities in Bosnia and Herzegovina are fuelled by equity capital which is why the difference between the two indicators is the smallest.
Bisnode comments: Taking into account both the structure of liabilities and the achieved profitability it can be established that the Slovenian economy is the healthiest. The use of financial leverage and thus the operational risk was highest in Croatia, while Bosnia and Herzegovina still had enough room to increase the return on equity on account of obtaining cheaper sources of financing than equity. In all countries, profitability improved in 2015 compared to 2014: ROA most significantly in Bosnia and Herzegovina and ROE in Serbian companies.
5MAIN TOPIC Bisnode SM Bulletin October 2016
ROA 2015 ROE 2015
ROEROARETURN ON ASSETS
A measure of total asset management efficiency.
ROA = return/assets
How much net profit/loss was generated by the company per unit of invested assets.
No
Higher indicator value – a better performance
Management.
What does it show?
What is it?
How is it calculated?
What does it tell us?
What does it mean?
Who is it most interesting for?
Does the indicatortake the sources of
financing into account?
RETURN ON EQUITY
A measure of total equitymanagement efficiency.
ROE = return/equity
How much net profit/loss wasgenerated by the companyper unit of invested equity.
Yes
Higher indicator value – a better performance
A higher indicator valuecan also mean higher
operational risk due togreater indebtedness.
The owners.
SLO
CRO
BIH
RS
MNE
1.9% 4.1%
1.6% 4.3%
3.3%2.7%
-0,8%
1.1%0.6%
-1.7%
7MAIN TOPIC
TRADE AND EDUCATION WERE MOST PROFITABLE FOR COMPANY OWNERS IN THE REGIONIn spite of the general improvement of company profitability in all economies concerned, there are some differences between individual industries. Presented below are the three most and three least profitable industries by country in terms of ROE in 2015 compared to 2014.
Bisnode SM Bulletin October 2016
Source: Bisnode Southern Markets
Source: Bisnode Southern Markets
TOP 3
BOTTOM 3
SloveniaManufacturing 10.0%
Mining -45.1%
Information and communication activities 8.8%
Power supply -14.2%
Other miscellaneous business activities 8.4%
Financial and insurance activities -1.2%
TREND2014/2015
TOP 3
BOTTOM 3
CroatiaEducation 16.9%
Mining -7.3%
Professional, scientific and technical activities 10.9%
Real estate activities -4.8%
Power supply 9.9%
Construction -0.7%
TREND2014/2015
Source: Bisnode Southern Markets
Source: Bisnode Southern Markets
Source: Bisnode Southern Markets
8
Bisnode comments: The most profitable industries in the region are: trade, education, information and communication activities and professional, scientific and technical activities. The greatest losses, on the other hand, are generated by: mining, water, gas and steam supply, financial and insurance activities and real estate business.
Bisnode SM Bulletin October 2016 MAIN TOPIC
TOP 3
BOTTOM 3
Bosnia and Herzegovina Arts, entertainment
and recreation activities 20.3%
Other miscellaneous business activities 20.3%
Mining -5.2%
Education 11.9%
Power supply -1.6%
TREND2014/2015
TOP 3
BOTTOM 3
Information and communication activities 13.6%
Real estate activities-3.4%
Education 10.7%
Financial and insurance activities -2.9%
Other activities 7.1%
Construction -2.7%
TREND2014/2015Serbia
TOP 3
BOTTOM 3Financial and insurance
activities -176.1%
Information and communication activities 13.3%
Real estate activities -9.9%
Education 12.9%
Mining 36.2%
Power supply -6.2%
TREND2014/2015Montenegro
Real estate activities-11.5%
Source: Dun & Bradstreet
These are the latest WorldWatch Headlines. D&B Country Information has detailed analysis, forecasting and commentary on 132 Countries. What have D&B Country Insight Services spotted in Octobre? Which events might have influence on global markets? Here are some highlights in the Southern Markets region and some of the world's biggest economies.
10
RISKS IN OUR REGION: REFERENDUM OUTCOME, RISE IN ILLEGAL MIGRATION, ENVIRONMENTAL RISKS
Dun & Bradstreet is a strategic partner of the Bisnode Group.
AlbaniaThe excessive public debt will
fall substantially this year.
Bosnia & HerzegovinaA referendum in a Serbian entity compromises
the country's long-term viability.
CroatiaDun & Bradstreet upgrades its rating outlook for
Croatia in expectation of a stable coalition government.
MacedoniaFlash floods highlight environmental risks to business continuity.
SerbiaThe government will fence southern borders in response to a rise in illegal migration.
SloveniaThe economic outlook improves on the back of strong growth.
GermanyPolitical risk rises as local elections end in heavy
defeat for Chancellor Merkel's party.
United KingdomUncertainty about the country's future relations
with the EU remains very high.
Russian FederationThe Pro-Putin United Russia party secures a
landslide victory in the parliamentary election.
USAConsumer spending is the sole driver of modest growth.
ChinaPrivate investment growth nationally is stalling as it plummets in the northeast.
JapanThe Bank of Japan takes markets by surprise with new policy measures on inflation.
Bisnode SM Bulletin October 2016
MACRO OVERVIEWOF THE ECONOMY – SOUTHERN MARKETS
GDP, UNEMPLOYMENT RATE, INFLATION
GROWTH
DECREASE
UNEMPLOYMENT RATE
INFLATION
GDP€€€€€€€€
ZERO GROWTH
Source: www.bisnode.si
In the second quarter of 2016, CROATIA recorded the highest economic growth (2.8 PERCENT) and BOSNIA AND HERZEGOVINA the lowest – 1.4 PERCENT. Compared to the previous quarter, economic growth dropped in BOSNIA AND HERZEGOVINA and SERBIA, while it grew in SLOVENIA and CROATIA.
In September 2016, consumer prices on average increased at the annual level in SERBIA and SLOVENIA, dropped in CROATIA and remained at the same level in BOSNIA AND HERZEGOVINA.
In August 2016, CROATIA and SLOVENIA recorded 13.1 PERCENT and 10.6 PERCENT of unemployment rate, respectively. Compared with the previous month, the unemployment rate dropped in both above-mentioned countries, namely by 0.2 of a PERCENTAGE POINT. In the FIRST QUARTER of 2016, according to ILO survey, SERBIA recorded 19,7 PERCENT of unemployment rate.
GLOSSARY:
GDP or gross domestic product is the market value of all final products and services created by the economy of a country in one year. Economic growth is measured as growth in gross domestic product (GDP) for the quarterly period. The infographic shows growth in the SECOND QUARTER 2016 compared with growth for the FIRST QUARTER OF 2016.
INFLATION marks the growth in the level of prices in general, while the inflation rate shows the change in the level of prices (annual index). The infographic shows data on annual inflation for SEPTEMBER 2016 and the development trend compared to SEPTEMBER 2015.
UNEMPLOYMENT RATE indicates the proportion of persons in the active population not in an employment relationship. Calculated according to two methodologies: survey-based unemployment (ILO) and registered unemployment. For Slovenia and Croatia, data on registered unemployment is provided, while ILO data is used for Bosnia and Herzegovina and Serbia, as no data on registered unemployment is available. The infographic shows data for AUGUST 2016 and the development trend compared to JULY 2016.
data for the �rst quarter of 2016
no data for the selected period.
11MACRO Bisnode SM Bulletin October 2016
0.40%1.30%
MICRO OVERVIEWOF THE ECONOMY – SOUTHERN MARKETS
NEW BUSINESS START-UPS – SEPTEMBER 2016The number of new business start-ups includes companies, private entrepreneurs and other legal forms of organisation engaged in economic activities. The infographic shows the share of all businesses less than one month old in total active economic subjects on southern markets at the monthly level.
DEREGISTRATIONS – SEPTEMBER 2016The infographic shows the share of deregistrations of companies, sole proprietors and other legal entities performing economic activity in total active economic subjects on southern markets at the monthly level.
In September, the largest share of start-ups was recorded in SLOVENIA – 1.3 PERCENT, and the smallest in CROATIA – 0.1 PERCENT. This means that one new company was founded in SLOVENIA per 75, while in CROATIA, the respective figure was one per 1,400 companies.
In September, the largest share of deregistrations was recorded in CROATIA – 2 PERCENT, and the smallest in SERBIA – 0.1 PERCENT. In CROATIA, one company per 50 was deregistered while in the SERBIA it was one company per 710.
Source: www.bisnode.siNote: Preliminary data for CRO, BIH, SR.
Source: www.bisnode.siNote: Preliminary data for CRO and SR; no data available for BIH.
0.60% 0.10%
SHARE OF NEW BUSINESS START-UPS IN TOTAL ACTIVE ECONOMIC ENTITIES
0.70%
SHARE OF DEREGISTRATIONS OF COMPANIES IN TOTAL ACTIVE ECONOMIC ENTITIES
2.00%
12 MICROBisnode SM Bulletin October 2016
0.10%
0.26% 0.18% 0.14% 0.08%
INSOLVENCY PROCEEDINGS – SEPTEMBER 2016The infographic shows the share of insolvency proceedings for companies, sole proprietors and other legal entities performing economic activity in the southern markets in total active economic subjects against which an insolvency proceeding was initiated in the month concerned (bankruptcy, compulsory settlement, liquidation).
BLOCKINGS – SEPTEMBER 2016The infographic shows the share of companies, sole proprietors and other legal entities performing economic activity in the Southern markets in total active economic subjects whose transaction accounts were blocked for at least one day in the month concerned.
SHARE OF INSOLVENT COMPANIES IN TOTAL ACTIVE ECONOMIC ENTITIES
In September, the biggest share of insolvencies was recorded in SLOVENIA – 0.26 PERCENT, and the smallest in CROATIA – 0.08 PERCENT. Thus, in SERBIA one new insolvency proceeding was initiated per every 550 companies and in CROATIA per every 1,300 companies.
Source: www.bisnode.si
30.1% 24.6% 10.7% 6.3%
SHARE OF BLOCKINGS IN TOTAL ACTIVE ECONOMIC ENTITIES
In September, the highest share of blockings was again recorded in BOSNIA AND HERZEGOVINA – 30.1 PERCENT and the lowest in SLOVENIA – 6.3 PERCENT. This means that in BOSNIA AND HERZEGOVINA every THIRD company was blocked, in SERBIA every FOURTH, in CROATIA every NINTH and in SLOVENIA every SIXTEENTH company.
Source: www.bisnode.siPreliminary data for CRO, BIH, SR.
13MICRO Bisnode SM Bulletin October 2016
