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PeC Covid 19 CFO Puls: About 60% of financial directors preoccupied by possibility of new pandemic wave appearance
About 60% of financial directors are preoccupied by possibility of appearance of new pandemic wave and make plans for improvement of income flows affected by crisis, the latest edition of PwC Covid 19 CFO Pulse edition shows.
According to a company press release 63% of them have in view new products and services to improve incomes and point out the main role of innovation in this process. 48%intend to change the price strategy, either by higher prices, lower prices or new payment conditions and 36% want to explore alternate distribution strategies such as the virtual sale or delivery of services.
“Most companies surpassed the stage of immediate crisis response, they understood that the virus will remain a threat for a long period of time and started adapting strategies to the new market conditions and obtain a more rapid financial recovery. In order to generate incomes in the crisis context, companies need services and products which should answer new realities. Consequently, creativity and innovation will be determining factors in the race to relaunch economic activities,” said Ionut Simion, Country Managing Partner PwC Romania.
The main preoccupation for most financial directors (60%)has in view effects of global economic crisis and the possible appearance of a new wave of infections.
More than half (53%) expect an income and/or profit drop of 25% as a result of the crisis. In order to recover income flows, 63% are planning to modify the offer of products and services. Companies adopt new work ways, 52% report they intend to turn work from home a permanent option for the roles that allow it, while 52% want to improve working from home.
Financial directors were less worried about the interruption of supply chains (17%) and the capacity to manage work from home efficiently (16%) in conditions when most companies have successfully overcome these aspects.
While two months ago almost half of financial directors (45%) estimated productivity drops due to the lack of working from home capacities, according to the present survey only 26% anticipate productivity losses next month.
At present, only 4% of directors say it is still difficult to evaluate the crisis impact. In those conditions 81% of them continue to focus on cost cuts as the main measure to reduce crisis effects, while more than half (56%) have in view the delay or cancellation of planned investments. Capex investments represent the most probable source of delaying or reducing expenses, 82% of financial directors show, while 47% will reduce operational expenses, and 40% labor force costs.
The 5th edition of the survey Global Covid 19 CFO Pulse was released on June 15 and was made in the first week of June among 989 financial directors from 23 countries and territories: Central and Southern Africa, Brazil, the Caribbeans, China/Hong Kong, Cyprus, Denmark, France, Germany, Greece, Ireland, Japan, Lithuania, Malaysia, Mexico, the Middle East, the Netherlands, Portugal, Singapore, Sweden, Thailand, Turkey, USA and Vietnam.