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Covid: who are the winning and losing multinationals?

2020-11-20T19:37:32.841Z


The epidemic affects large companies very differently.The coronavirus epidemic, which will lead to a global recession this year, affects multinationals in various ways, with its share of losers but also big winners, according to a study by the research center of the Italian bank Mediobanca. Read also: Reconfinement: Amazon loses market share The analysis, released on Thursday, is based on the financial results for the first nine months of 2020 of m


The coronavirus epidemic, which will lead to a global recession this year, affects multinationals in various ways, with its share of losers but also big winners, according to a study by the research center of the Italian bank Mediobanca.

Read also: Reconfinement: Amazon loses market share

The analysis, released on Thursday, is based on the financial results for the first nine months of 2020 of more than 160 companies with revenues above three billion euros.

On average, these multinationals saw their sales decrease by 4.3%.

The winners

Internet

The multinational internet companies (the "

WebSoft

") are "

the absolute winners

" of the pandemic.

The turnover of the sector - where online commerce, including Amazon, weighs for a third - jumped by 18.4% and its net profit by 21.8%.

"

The web giants have confirmed their ability to adapt and their flexibility during this crisis

", knowing "

taking advantage of the containment measures adopted by governments

" to try to contain the epidemic, and "

the change in consumer habits

», Emphasizes Mediobanca.

Home food delivery services experienced a revenue boom (+ 47%), as did video games (+ 40%) and e-commerce (+ 33%).

On the other hand, naturally, online travel sales suffered a boom (-52%).

Large distribution

The turnover of the sector (Carrefour, Woolworths ...) increased by 8.8% and its net profit by 19.2%.

Online commerce is on the rise, with an acceleration in the third quarter (increase of more than 80%).

"

The large food distribution, which was not affected by the containment measures, took advantage of the restrictions imposed on catering, the use of teleworking and an attitude of accumulation (creation of stocks) on the part of consumers,

”notes Mediobanca.

Consumption habits are constantly changing, add the experts, with an increase in the average receipt, a reduction in the frequency of purchases and a preference for small convenience stores, discount and supermarkets over hypermarkets.

At the same time, we are witnessing an explosion in online shopping platforms (Click & Collect and home delivery) and the development of innovative payment methods (via smartphones for example).

Electronics

Another winner, the elect, who has benefited from "

digital acceleration, on a global scale, in response to the pandemic

", with the development of "

cloud computing

" (dematerialized computing), artificial intelligence and 5G, Mediobanca note.

The sector's revenue increased by 5.7% and its net profit by 11.6%, supported by increased demand for data centers, computer networks and information systems.

Waiting

Pharmaceutical sector

If its net profit is at half mast (-10.1%), the sector (Bayer, Roche ...) saw its sales increase by 3.1%, with an increase in the first quarter, a decline in the second and a new increase in the third, following the evolution of the pandemic.

For the whole of 2020, Mediobanca expects sales to increase by around 3% for the sector, adding that the marketing of vaccines could lead to a sharp increase in the revenues of the companies concerned.

Losers

The oil and energy sector

It is the big loser: the oil and energy sector (BP, PetroChina, etc.) saw its turnover fall by 32.3% and suffered net losses, due to the collapse of Classes.

Even if an improvement appeared in the third quarter, it is difficult, underlines Mediobanca, to predict the evolution of the sector next year.

Transportation

The epidemic has given the sector a violent blow.

The automotive industry (Fiat Chrysler, PSA, Volkswagen, etc.) saw its sales fall by 17.4% and its net profit by 66%.

But aircraft manufacturers, strongly affected by the cessation of tourist flows, are even more affected, with revenues down 30.6% and net losses.

The fashion

"

2020 promises to be the most difficult year ever encountered by the fashion industry

" (LVMH, Adidas ...) due to the closure of stores and the cessation of tourism, explains Mediobanca.

The drop in sales is sharp (-21.3%), despite the double-digit increase in e-commerce, and is accompanied by net losses, although most multinationals saw an improvement in the third quarter, with a recovery observed in particular in China.

According to Mediobanca, "

2021 will likely be a year of growth, even if the return to pre-crisis turnover will not take place before 2022 for many companies

".

Source: lefigaro

All business articles on 2020-11-20

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