Horváth Research: ‘Loss’ of the Russian Market Has No Significant Impact on Company Revenues in 2022

The beginning of the Russian invasion of Ukraine has posed a series of challenges for numerous companies, ultimately resulting in the withdrawal of business from Russia. However, according to research conducted by the independent consulting firm Horváth, which was carried out in 18 countries worldwide, including Croatia, the loss of the Russian market has no significant impact on company revenues in 2022.

– The war in Ukraine has caused numerous market disruptions primarily related to the shortage of raw materials, inflation, and rising energy prices. It is a fact that such a situation will reflect on certain segments of business – said Maria Boldor from the consulting firm Horváth, emphasizing that a total of 280 managers from various sectors covered by this research are not concerned about how this will significantly affect their revenues in the current year.

– I believe this is the result of effectively defining strategic priorities, which is particularly important in times of crisis, such as the market has faced in recent months – Boldor stated.

According to the results of the conducted research, all companies have raised the prices of their products compared to 2021, citing the increase in energy and raw material costs, material shortages, inflation, and supply chain issues as reasons. On the other hand, as many as 70 percent of the surveyed companies expect sales growth this year, while nearly 80 percent expect the same in 2023.

The main factor for growth is the current inflation, which is causing an increase in sales figures in most industries, even with stagnating sales volumes, but also increased demand that allows companies to raise prices. In this context, the highest growth is expected by companies in the transportation industry, which were significantly affected by the coronavirus pandemic, followed by the pharmaceutical and automotive industries.

Additionally, the research showed that for the third consecutive year, companies highlight digital transformation as the main priority of their business, with the reason being to increase efficiency and ensure stable medium-term and long-term growth. Frequent cyberattacks have elevated cybersecurity to a high second place among companies’ strategic priorities, and they see the solution in developing plans that will ensure their resilience to potential attacks.

Environmental sustainability is also a high priority, with more than 70 percent of companies emphasizing their plan to become carbon neutral by 2030. Companies do not plan to develop new strategies but will focus on implementing already set business goals.