Money Buzz! Europa

Category: Business

  • Coface launches Diagnostic to help companies assess the financial situation of business partners

    Coface launches Diagnostic to help companies assess the financial situation of business partners

    Coface Romania launches 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.

    What Diagnostic offers to users

    Unique on the business information market: the only product in Romania that evaluates the company’s financial situation and payment behavior in an extended 6-page analysis

    Analysis: illustrates the main 5 strengths and weaknesses of the company in terms of payment behavior, liquidity, solvency, cash flow, investments and working capital turnover

    Large addressability: the product can be used by the financial, commercial, management, logistics or procurement departments

    Industry-related analysis: objectively interprets the financial indicators of the analyzed company in comparison with sectorial averages and good practices

    Intrinsic analysis: evaluates the sustainability of financial indicators considering the company’s situation, years on the market, the need for liquidity and profitability taking into account the investment strategy and capital structure

    Diagnostic is useful in assessing a company, its partners, be it suppliers, customers or even competitors.

    Over the last 10 years, the degree of interconnectivity of Romanian companies has increased exponentially, as shown by both the dynamics of supplier credit and the evolution of the average period trade receivables collection.

    Thus, the supplier credit has become about 3.5 times higher than the amount of bank credit in the last decade, and the average collection period has almost doubled, from 60 days in 2007 to 115 days in 2019.

  • Arctic donates intensive care mechanical ventilators to hospitals in Romania

    Arctic donates intensive care mechanical ventilators to hospitals in Romania

    Arctic donates mechanical ventilators to hospitals in Dambovita county, aiming to offer continuous support to the medical teams in the fight against the crisis generated by the coronavirus.

    Arçelik, the mother company of Arctic, produced 5.000 life-saving mechanical ventilators on a not-for-profit basis to meet domestic and international demand, of which 2.660 have been sent to 21 countries including some of the hardest hit such as Brazil.

    The devices have also been sent to Somalia, Afghanistan, Azerbaijan, Bangladesh, UAE, Chad, Dagestan, Ecuador, Kazakhstan, Kirgizstan, Colombia, Libya, Niger, Nigeria, Uzbekistan, Romania, Syria, Sudan, Morocco and Iraq.

    The ventilators were manufactured at Arçelik’s Çerkezköy electronics factory, which is equipped with the latest digital technologies.

  • Alpha Bank launched a full online service for Greek companies

    Alpha Bank launched a full online service for Greek companies

    Alpha Bank is the first Greek bank to offer the possibility for companies to begin their banking relationship easily, quickly and without having to visit a branch.

    The new service complements the online renewal of legal documents implemented by Alpha Bank in 2019 and the online registration for Businesses to the e-Banking.

    ”The new Digital Business Onboarding service offers businesses a modern and interactive
    guide to start their banking relationship with Alpha Bank in an exclusively digital
    environment, as well as the ability to submit the necessary documents online, safely and
    quickly, without the need to visit a branch”    , said the Manager of the Digital Banking Division, Agis Papastergiou.

  • UniCredit and the European Investment Bank, 200 million euros for SMEs

    UniCredit and the European Investment Bank, 200 million euros for SMEs

    European Investment Bank will allocate 200 million euros to UniCredit, to lend in turn to SMEs (companies with up to 250 employees) and mid-caps (up to 3.000 employees).

    The new credit line is designed to tackle the current emergency and can be used to fund new investment projects over periods of up to five years and to cover working capital needs.

    The funding is intended for companies all over Italy, in all production sectors: agriculture, handicrafts, industry, commerce, tourism and services.

    The EIB funds can be used for projects with individual costs of up to 25 million euros, and cover 100% of costs not exceeding 12.5 million for each project.

    UniCredit and the EIB have agreed to apply extraordinary eligibility criteria to this credit line for companies.

  • Swiss company launched the first purely vegetable kebab in the world

    Swiss company launched the first purely vegetable kebab in the world

    Planted launched a 100% purely vegetable kebab pies without gluten and additives. The product to be available from the beginning of September in 15 kebab shops in Switzerland.

    From 1 September, the Neue Taverne in Zurich will also have various planted.kebab variations on its menu.

    Planted.kebab is based on the planted.chicken product. In addition to salt and a spice preparation, it contains only four ingredients: water, pea protein, and rapeseed oil and pea fibers.

    “This means that Planted’s kebab has the shortest list of ingredients on the market and does not contain any additives,” the start-up shows in a press release.

  • China exports hit $237.6bn value in July, a 7.2% increase from last year

    China exports hit $237.6bn value in July, a 7.2% increase from last year

    China exports were severely hit after the coronavirus outbreak as the authorities locked down major cities to slow the virus spread.

    However, with more and more countries lifting COVID-19 restrictions, China exports have witnessed unexpected growth rates in the last few months.

    According to data presented by BuyShares.co.nz, China exports hit $237.6bn value in July, a 7.2% jump year-on-year.

    Record shipments of medical supplies

    China’s economic development has largely profited from its export-led growth strategy. In 2013, the country overtook the United States as the world’s largest trading nation, with more than $2.2trn export value of goods that year, revealed the World Trade Organization data.

    The increasing trend continued in the next twelve months, with the combined value of exported goods jumping over $2.3trn by the end of 2014. In 2016, China exports plunged 25%, falling to $2.09trn, the sharpest drop since the 2008 financial crisis.

    However, during the next year, the export demand recovered, reaching over $2.2trn value. Statistics show the total export value continued rising, reaching over $2.4trn in 2018, a 10% jump year-on-year.

    The World Trade data showed that in 2019, China exported nearly $2.5trn worth of goods. However, this was only a 0.5% increase year-on-year, mostly due to the sharp fall in sales in the US market amid ongoing trade tensions.

    Nevertheless, the US and the EU remained China’s most significant export partners, with a 17% market share each. Hong Kong ranked as the third-largest destination for China’s shipments with an 11% share. Statistics also showed automatic data processing machines, textiles and mobile phones were among China’s top export goods last year.

    In January 2020, the total value of monthly exports from China hit nearly $292.5bn value, revealed the China Customs data. However, due to the coronavirus lockdown, this figure stumbled to $185.1bn in March, almost a 37% plunge in two months.

    With the global demand improving and more countries lifting COVID-19 related restrictions, China exports recovered to $206.8bn in May. The increasing trend continued by the end of July, with the combined value of monthly exports rising to $237.6bn, a $37.4bn increase in two months.

    The country’s exports have been boosted by record shipments of medical supplies and surge in demand for electronic products. Statistics show that in July, exports to Australia jumped 15.8%. The ASEAN countries and the United States followed with 14.1% and 12.1% increase, respectively. However, sales to Japan fell 2% last month.

    China’s monthly trade surplus jumped to $62.3bn in July

    As the world’s largest importer, China has witnessed a surge in the import demand in the first two months of 2020, with the combined value of imported goods rising to almost $300bn, a $108bn jump since December 2019.

    However, statistics show this figure dropped by 44% in the next 30 days, falling to $165.2bn in March. In July, the total value of imports to China amounted to around $175.3bn, a 0.6% increase year-on-year.

    The China Customs data show the monthly trade surplus, as a major growth factor for an economy, also recovered after a sharp fall in the first two months of the year. In early 2020, China reported a monthly trade deficit of $7.1bn, the first time since March 2018.

    However, statistics show that in March, the monthly trade balance of goods recovered to $19.9bn, and continued rising ever since. In July, the trade surplus in China amounted to $62.3bn, a 41% increase year-on-year. 

  • 1 million transactions are processed a day on the Klarna platform

    1 million transactions are processed a day on the Klarna platform

    Klarna has seen accelerated growth and demand from retailers and consumers despite taking precautionary measures during the first half of 2020 due to Covid-19.

    Klarna registered strong growth in gross merchandise volume and total net operating income of 44% and 36% respectively YoY.

    Gross merchandise volume now amounts to USD 22bn and total net operating income is USD 466m.

    The company added more than 35,000 retailers to the strong global retailer base of more than 200.000, or approximately 200 new per day.

    Klarna added almost 14 million consumers, with especially strong growth in the US and UK where the number of consumers has grown with close to 550% and 120% respectively compared to the same period last year. 

    The number of monthly active app users has increased by almost 2x to 12 million, compared to the same period last year.

    There are approximately 45.000 app installs every day globally, which is 3x as fast compared to the same period last year. 

    Big names joined Klarna

    New retailers include Sephora, Groupon, SHEIN, Nixon, Charlotte Tilbury, Vans, The North Face, Ted Baker, Timberland, Ralph Lauren, Club Monaco, Anine Bing, Domino’s Pizza, NTWRK, Finish Line, Aéropostale, Nautica and Fender and thousands more across verticals and markets. 

    They join other global brands like ASOS, H&M, Gymshark, IKEA, Farfetch, Cult Beauty, Dyson, JD Sports, Acne Studios, Peloton, Bose, Missguided, Samsung, Sonos, Beauty Bay, AliExpress, Abercrombie & Fitch, Lenovo, APC, Agent Provocateur, Overstock, Good American and Michael Kors.

    Klarna is now the ”pay later” partner of choice for the top 100 highest grossing merchants in the US. Klarna’s In-store proposition is now live in ten markets.

  • Dating company Spark Networks revenues incresed by €54.2 million

    Dating company Spark Networks revenues incresed by €54.2 million

    Spark Networks revenue for the first half of 2020 was €103.4 million, an increase of €54.2 million from €49.2 million in the first half of 2019, and an increase of €3.5 million from €99.9 million in the second half of 2019.

    The significant increase in revenue is primarily attributable to the integration of Zoosk following the Spark Networks / Zoosk Merger in July 2019.

    Net Loss was €0.4 million in the first half of 2020, an improvement of €4.5 million compared to Net Loss of €4.9 million in the first half of 2019, and an improvement of €9.9 million compared to Net Loss of €10.3 million in the second half of 2019.

    The year over year improvement in Net Loss was primarily due to increases in revenue and contribution driven by the addition of Zoosk.

    Adjusted EBITDA was €17.1 million in the first half of 2020, an increase of €13.3 million compared to €3.8 million in the first half of 2019, and an increase of €12.8 million compared to €4.3 million in the second half of 2019.

    Spark Networks ended the first half of 2020 with €12.0 million in cash and €88.8 million in debt.

    Spark Networks SE is America’s second largest dating company, listed on the New York Stock Exchange American under the ticker symbol “LOV,” with headquarters in Berlin, Germany

  • Garanti BBVA Leasing, EUR 7 million for micro and small enterprises

    Garanti BBVA Leasing, EUR 7 million for micro and small enterprises

    Garanti BBVA Leasing is expanding financing opportunities for micro and small enterprises (MSEs) in Romania, by signing a loan agreement of EUR 7 million with the European Fund for Southeast Europe (EFSE).

    The investment aims to boost the ability of this vital business segment to preserve their operations as well as sustain and generate employment and income in light of the COVID-19 crisis.

    The new funding will be used to expand the institution’s leasing offer for local small businesses, a segment that has been severely negatively impacted by the economic effects of the coronavirus pandemic.

    Leasing provides an important source of long-term financing to smaller businesses which may not have the extensive collateral necessary for bank loans.

  • Delivery Hero revenues at over EUR 1 bn in the first half of 2020

    Delivery Hero revenues at over EUR 1 bn in the first half of 2020

    Delivery Hero revenues increased significantly by 93.7% on a year-on-year basis to EUR 1,126.8 million in the first half of 2020.

    After the easing of lockdowns and curfews in many countries during the second quarter, the company’s business activities resumed their growth trajectory.

    In terms of profitability, gross profit was broadly stable year-on-year (EUR 167.2 million in H1 2020 compared to EUR 168.3 million).

    The adjusted EBITDA margin in H1 2020 improved in each segment compared to the same period in 2019.

    Delivery Hero expects continuous growth also in the second half of 2020.

  • The global transactions landscape has come to an abrupt standstill due to the pandemic

    The global transactions landscape has come to an abrupt standstill due to the pandemic

    The global transactions landscape has come to an abrupt standstill due to the COVID-19 pandemic, as companies preserve cash and grapple with the immediate impact of the crisis.

    EY research, however, reveals that companies that make bold decisions on their transaction and strategic investment plans early on after a crisis are the ones that benefit the most in the long-term.    

    Reviewing transactions in the immediate period (2008-2010) after the Global Financial Crisis (GFC), EY research found that companies that were early movers and made bold choices on portfolio-transforming transactions saw a 25% increase in total shareholder return (TSR) over the following decade, compared to those that didn’t.

    Businesses that made acquisitions saw 26% higher returns for shareholders. Those companies that proactively reshaped their portfolios by taking the harder, but more decisive, step to divest assets also reaped rewards achieving 24% higher returns over the same period.

    In further evidence that companies that invested their capital following the GFC gained in competitive advantage, the research found that they saw two- or three-times higher returns over those that took a cautious approach.

    Industry drivers behind pick up in M&A

    With M&A activity across all sectors affected by the COVID-19 pandemic, the drivers that are likely to lead to a shift up in gear for deals vary considerably by industry, according to EY analysis.

    In the healthcare sector, M&A activity is likely to be boosted by large companies buying innovative players in the cell and gene therapy space, as scientific advances continue to showcase the promise of these personalized therapies. A surge in joint ventures and alliances is also on the cards for the sector, as companies look to build the large-scale manufacturing and supply chain expertise required to scale-up delivery.

    The media and telecoms sectors look set to overcome challenges caused by the shutdown and capitalize on the continued shift in consumer preferences for digital entertainment media.

    Whereas, in the technology sector, established players who are looking to augment their capabilities, especially in cloud and customer engagement, will expand their market share and increase their top line by capitalizing on the attractive pricing of innovative start-ups.

    In retail and industrials, combinations aimed at shoring up balance sheets and companies’ ability to generate higher levels of cash flow and boost cash reserves will help spur up activity. At the same time, transactions in the automotive sector will be driven by existing market trends, such as the shift to fully electric vehicles.

  • Companies redirected almost half of the marketing budgets towards social media

    Companies redirected almost half of the marketing budgets towards social media

    During the COVID-19 pandemic, companies redirected almost half of the marketing budgets (46%) towards social media and mobile activities, according to the latest edition of Deloitte Chief Marketing Officer (CMO) Survey, twice as much as before the pandemic.

    The study also emphasizes that marketers anticipate a continuous growth for mobile spending over the next 12 months, while spending on social media will remain close to the new high level.

    Deloitte CMO Survey was the result of an analysis of almost 300 responses from top marketers active in 13 industry sectors in US.

    Three quarters of the respondents used social media mainly for brand awareness and brand building (84%) and over half of them focused social media activities on the retention of current customers (54%) and the gain of new customers (51%).

    Additionally, the study underlines that social media’s contribution to the company performance spiked during the pandemic, with a 23.5% increase from February 2020.

    Another finding is that marketers make little use of influencers campaigns, as only 8% of their budget is allotted to online influencers on social media such as LinkedIn, company blogs, Instagram, Facebook and others.

    Respondents anticipate that in the next three years they will increase their budget allocated to influencers to 13% of the total marketing budget, and the highest growth is expected in industries such as banking and professional services.

    Despite a 70% increase in mobile spending during the pandemic, marketers observe a very little lift in mobile’s contribution to company performance, as 28% of respondents believe that mobile activities don’t help at all in performance improvement.

    The study also highlights that when investing in mobile activities, marketers demonstrate a clear prioritization of mobile website optimization (70%) over app creation and maintenance (30%).

    The role of the marketing department inside the companies changed during the COVID-19 pandemic, as almost two thirds of the respondents (62%) report that marketing function has increased in importance, with business-to-business (B2B) companies seeing this increase most strongly at 63% (B2B products) and 72% (B2B services).

    Alongside a recognized key role of the marketing function, findings of the study reflect the importance of the priorities set by the organization for the marketing department, such as retaining customers and maintaining brand awareness, as the pandemic raised the marketing budget to 12.6 % of the firm’s overall budget compared to the pre-pandemic period (11.3%).

    This importance is striking given the fact that marketers are doing more with fewer people, as 9% of the marketing jobs were lost during the pandemic. Workforce inside the marketing function could raise concerns in the nearest future, as a quarter of respondents (24%) anticipate that these jobs will never return.