According to a report by Accenture, European companies that accelerate both their digital and sustainability transitions are likely to recover faster and emerge stronger from the COVID-19 crisis.
The study shows that European business leaders expect to return to pre-pandemic profit levels in an average of 18 months.
According to the report, the COVID-19 crisis has caused a divergence in the resilience and growth prospects of European companies:
- 49% of European companies have had a decline in sales or profits for the last 12 months and do not expect any improvement in the next 12 months.
- 19% of European companies had strong financial performance before the pandemic, but now expect negative sales or earnings growth over the next 12 months. The report calls these companies “falling angels”.
- 32% of European companies expect profitable growth over the next 12 months. In the report, these companies are referred to as “tomorrow’s leaders”.