Three in four FMCG companies in Romania run the risk of insolvency
Three in four local companies in the fast-moving consumer goods (FMCG) sector run the risk of insolvency in the next 12 months, according to a study by Coface and EY.
In the last seven years, the revenues of the FMCG sector rose by 26% whereas the number of companies in the sector dropped by 17%. Also, two in ten companies active in the FMCG sector record revenues above EUR 1 million, the study shows.
The evolution is unequal among the FMCG sectors. The wholesale of sugar, chocolate and sugar confectionery dropped by 20% whereas the wholesale of fruits and vegetables rose by 22%, mainly due to the drop in the VAT rate.
According to the study, Romania has an economic growth based on consumption, which generates imports.
“The share of consumption in the GDP in 75%. This is not a problem per se. The challenge comes when we find that consumption doesn’t boost local production,” said Iancu Guda, Coface Romania director.
editor@romania-insider.com
