The Coronavirus Pandemic Cost European Companies $100 Billion In Lost Revenue
The COVID-19 coronavirus pandemic has cost European companies more than $100 billion in lost revenue since the beginning of 2020, Dow Jones estimates show.
Energy companies, car manufacturers, and representatives of the fashion industry were the most affected. Among those who won in these conditions are food retailers and pharmaceutical companies.
The Dow Jones estimates are based on reports from European companies for the fiscal quarter that fell between January and the end of may this year: during this period, they received a total of about $102.66 billion in revenue. At the same time, the companies ' added revenue, which was also generated by increasing demand for medicines and food, amounted to $23.87 billion.
Losses of oil companies since the beginning of the year amounted to about $41.53 billion, that is, 40% of all revenue lost by European businesses. In particular, Royal Dutch Shell reported a 29% decline in revenue in the first quarter of 2020, or $23.71 billion, amid falling demand for oil and a collapse in prices.
France's Total SA, Britain's BP, and Spain's Repsol lost a total of $16.47 billion in revenue in the first quarter.
In the automotive sector, lost revenue totaled $13.64 billion in the first quarter, with Volkswagen AG and Fiat Chrysler Automobiles NV among the top ten most severely affected by the crisis in Europe.
The region's airlines announced a total of $4.29 billion in revenue declines, with revenue from Deutsche Lufthansa AG falling by $1.56 billion in January-March.
While food retailers such as ahold Delhaize of the Netherlands, owner of the Stop & Shop and Giant Food supermarket chains, benefited from a significant increase in demand for food products during the pandemic, clothing, footwear and accessories stores were among the losers.
Thus, the revenue of Swedish Hennes & Mauritz AB for the quarter ended may 31, fell by half, as the company had to close almost 80% of stores due to the pandemic. Inditex, which owns the Massimo Dutti and Pull & Bear brands, announced a 44% decline in revenue in the first fiscal quarter (February-April).
Among luxury brands, the French conglomerate LVMH Moet Hennessy Louis Vuitton SE suffered the most, with revenue falling by $2.12 billion in the first quarter of this year.
The impact of the pandemic on the performance of banks, insurers, and other financial companies was mixed. Thus, the German insurer Allianz SE, as well as the banks Barclays and UBS were in profit, while other representatives of the sector lost revenue.
The main sector that has benefited from the pandemic is the pharmaceutical sector. The list of top 10 European companies in terms of revenue growth includes drugmakers Novartis AG, AstraZeneca Plc, and Merk KGaA, as well as medical goods supplier Fresenius SE.