Romanian HoReCa FY 2020: 35% smaller revenues and wide discrepancies

The aggregate turnover of the companies in the HoReCa industry decreased by 35%, to RON 17.9 bln (EUR 3.70 bln), compared to RON 27.5 bln (EUR 5.79 bln) in 2019, as a result of the pandemic, reveals an analysis carried by financial and legal corporate data platform Termene based on financial statements reported by Romanian companies.

The number of employees in the hotel and restaurant industry has decreased during 2020 from 186,000 to 150,000, a decrease of 19% compared to the previous year.

Only the industry of events saw a steeper decline in terms of revenues last year (-38%).

The plunge was cushioned by the food delivery services, which accounted for 47% of the HoReCa sector’s revenues last year, according to the same study, quoted by Wall-street.ro.

As regards the bottom line of the companies in HoReCa, overall, it remained in the black, with wide discrepancies, though.

Thus, the net loss of the companies that posted a loss at the end of the year tripled from RON 710 mln in 2019 to RON 2.3 bln (EUR 460 mln) in 2020.

The aggregate net loss of the companies in the profit area nearly halved from RON 4.65 bln in 2019 to RON 2.49 bln in 2020.

Thus, overall, the sector’s balance moved from a hefty profit of RON 3.94 bln in 2019 to just RON 0.2 bln in 2020.

(Photo: Alex Dascalu/ Dreamstime)