Status: 15.09.2021 11:47 a.m.
Despite the corona pandemic, 93 percent of small and medium-sized companies made a profit in 2020 – this is shown by a survey by the German Savings Banks and Giro Association. But the next challenge is imminent.
Small and medium-sized companies in Germany have so far coped with the consequences of the corona pandemic better than feared. In some industries, around 93 percent of companies still made a profit in 2020, according to a survey by the German Savings Banks and Giro Association (DSGV).
“The sales of medium-sized companies fell by a total of only around three percent, while profits fell by a good five percent,” said Sparkasse President Helmut Schleweis. For the current year he is expecting an average of a good five percent increase in sales.
Around seven percent of the companies would have suffered a balance sheet loss in the Corona year 2020. Most of the time, capital buffers could have compensated for this. “In only 0.7 percent of the companies, the losses exceeded equity,” emphasized Schleweis. Thanks to their flexibility and solid capital cushion, the medium-sized companies got through the difficult time of the corona-related restrictions comparatively well.
The next mammoth task is imminent
With the transition to a more sustainable economy, the next mammoth task is imminent. “The conversion to more sustainability is probably the largest investment program of this decade,” said the DSGV President. Most corporate customers of the savings banks see this as an opportunity rather than a risk.
Strong growth expected in 2021
If there is no further lockdown, the DSGV expects strong growth in all industries in 2021 – although some areas are unlikely to reach the pre-crisis level again this year. For example, despite an estimated sales increase of 14 percent in 2021, the hospitality industry will probably only reap a relatively small part of its high corona losses.
The DSGV annually evaluates several hundred thousand balance sheets from corporate customers with an annual turnover of up to 250 million euros and analyzes from their savings bank advisors.