Large companies expect turnover growth in 2018

A survey of chief financial officers conducted by SEB reveals that a major part of large companies in Baltic countries expect their turnover to increase in 2018. 67% of large companies in Latvia, 70% Estonian and 59% Lithuanian large enterprises have expressed such expectations.

A survey of chief financial officers conducted by SEB reveals that a major part of large companies in Baltic countries expect their turnover to increase in 2018. 67% of large companies in Latvia, 70% Estonian and 59% Lithuanian large enterprises have expressed such expectation. This indicates to the highest level of optimism in this regard since 2014, when the first CFO survey was carried out in Baltics.

At the same time, the share of pessimists is at its lowest level. Only 5% of financial directors in Latvia project their company's turnover to decline over the next year, and this opinion is shared by 10% Lithuanian and 11% Estonian CFOs.

Ints Krasts, board member of SEB Latvia: "Large companies in Baltics are feeling confident and their expectation regarding the business opportunities next year are optimistic. Economic growth in all three countries is now at its highest pace in past six years, and all indications suggest that the positive trends will continue in 2018. At the same time it is interesting to note that while large companies are planning an increased turnover, which in many industries is closely related with an increased production, they are not planning to increase the number of their employees. This suggests that large companies see opportunities to improve their productivity, for example, by automating some processes."

Majority of large companies in Baltics are planning to maintain the number of their employees unchanged during the next year. 63% of large companies in Latvia, 57% in Estonia and 52% in Lithuania share this opinion. On the other hand, 35% of Lithuanian CFOs, have reported an ambition to grow the number of their staff next year, and 30% of Estonian and 24% of Latvian large enterprises admit to such plan. In all three countries 13% of large companies are planning to reduce the number of their employees.

This is the fifth survey of Baltic Chief Financial Officers. Results reveal whether CFOs expect that next twelve months will bring good or bad news for businesses, identify which are the main concerns and challenges, indicate whether businesses plan to expand or decrease their workforce and give an insight in other topics as well. 190 largest companies with annual turnover over 20 million euros from Latvia, Lithuania and Estonia participated in the survey, which was carried out during September of this year.