The immediate future is looking rosy for the big companies in Denmark, according to a new analysis compiled by Sydbank.
The analysis predicted that the largest 22 companies in the country will experience an increase in profits of 30 percent in 2014, largely thanks to global growth.
“We expect that the profits will strongly accelerate in 2014 compared to 2013,” Bjørn Schwarz, the analytical head of Sydbank, told Jyllands-Posten newspaper.
“The brighter economic and market outlook – which will catalyse increased turnover for the first time in years – will really be visible in the profit margins of the companies.”
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Well-performing market
Last year, the C20 stock market index showed a rise in profits of 6.9 percent and 12.9 percent before and after tax – a result that Sydbank expects to improve to 27.3 and 29.9 percent.
“I won’t lock myself to the percentages, but I agree with the bank’s expectations that the turnover experienced by the largest companies will finally begin to rise once again," Henrik Henriksen, a stock market strategist for PFA pension fund, told Jyllands-Posten.
"And when that happens, it will translate into a large profit increase because production has been considerable in recent years.”
The leading Danish shares have done well compared to many foreign exchanges last year – a trend that has continued so far this year and was underlined by the 6-8 percent value increase of the leading index in Denmark.
Among the companies on the C20 index are Carlsberg, Maersk, Danske Bank, Novo Nordisk, Novozymes and Vestas.
