One-third of the EBA companies are already fully operational
This was reported by 28% of directors of EBA member companies. The majority, namely 68% of companies, currently work partially or with certain restrictions. Almost half, namely 47%, limited the geography of their activities, 21% moved online, and 19% were forced to close some offices, outlets, or branches.
Of those companies that had previously suspended their work, 14% have already fully or partially resumed it. Only 4% currently do not work at all, although in early March there were 29% of such companies.
Most companies, namely 54%, continue to pay employees in full, with 31% doing so with additional or advance payments. Although two months ago there were slightly more of such companies – 63% and 45% respectively. Meanwhile, 7% send employees on unpaid leave, 3% partially lay off staff, and 1% are unable to make payments.
Of the 15% of companies that resort to payment cuts, three-quarters cut the pay to 50%. Some companies cut pay to workers, who are currently unable to work, or change the pay-per-hour format, so that not to leave them without earning completely. However, some companies reported an increase in employees’ salaries this year.
As the full-scale war enters its third month, the companies not only maintain but also slightly increased the support of Ukrainian defenders and humanitarian aid. Thus, 48% of our companies help financially (previously – 41%), 46% support workers who defend the country (previously – 35%), supply products – 43% (previously – 31%), services – 27%, medicines – 19%, means of protection/defense – 17%. Only 5% of companies report that they have already exhausted their resources to help.
The companies have improved their estimates of financial resilience: more than a third of companies, namely 36%, can hold out for another six months, 26% – for a few months, 18% – for a year, and another 16% – for more than a year. Only 3% of companies report that their financial reserves have been exhausted. While a month ago, 43% claimed that they had enough reserves for a few months and only 17% – for a year or more.
Meanwhile, companies suffer severely from the war as their losses are growing. Thus, two months of hostilities caused losses of up to $ 1 million for 42% of companies, another 34% suffered losses in the range of 1 – $ 10 million, and 16% reported losses of more than $ 10 million. The estimated total loss of the companies surveyed was more than $518 million. One month ago, our companies reported a total loss of about $ 350 million.
At the same time, 43% of the EBA companies report losses of property or other assets resulting directly from hostilities. Thus, we are talking about damaged or destroyed office space, warehouses, factories, as well as goods, equipment, stolen vehicles, and more. However, not all companies can currently calculate costs in temporarily occupied territories.
Most EBA member companies, namely 66% did not relocate offices or production, only 16% moved to western Ukraine, and another 4% abroad. Also, 67% of companies report their readiness to join the reconstruction work after the end of the war in Ukraine. So we continue to work, keep the rear and bring victory to Ukraine!
The survey was conducted from April 15 to 25, 2022, with the participation of 134 CEOs of member companies of the European Business Association.