Profits of biggest Romanian listed companies up 15% yoy in Jan-Sep 2019

The aggregated net profits of the biggest companies listed on the Bucharest Stock Exchange (BVB) increased by 15% in January-September compared to the same period last year, boosting investors’ expectations for robust dividends to be paid in 2020.

The first-tier companies listed at BVB ended the first nine months of 2019 with total revenues of RON 47 billion (EUR 10 bln), up 12.7% compared to the same period of the previous year, while their total net profits increased by 15.4% to RON 9.8 bln (EUR 2 bln).

For comparison, the economic growth in the first nine months compared to the same period in 2018 was 4.1%, Ziarul Financiar commented speaking of real terms.

For a fair comparison, however, the GDP by 11.4% (in RON) in nominal terms in January-June (latest data available) compared to the same period of 2018.

The nine-month financial results are used as an indicator for the dividends companies will pay next year, and, as dynamics are positive, brokers say investors can expect dividend growth.

However, the dividend yields could be the same or even decrease compared to this year due to stock price appreciation.

The blue-chip index BET has increased by almost 15% in the last year (November 20, 2018 to November 20, 2019).

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