Eurozone executives reset their corporate and investment strategies based on increasing optimism for growth opportunities in 2021 and 2022. According to the latest edition of the EY Global Capital Confidence Barometer (CCB) (pdf), the vast majority of Eurozone companies experienced significant decreases in revenue and profitability because of the pandemic. Yet, there is optimism that these declines are temporary, with respondents expecting a return to pre-pandemic levels of profitability either later this year (24%) or in 2022 (40%).
Looking to seize upon lessons learned from the pandemic, executives are preparing to make radical changes to the fundamental features of their businesses. A greater focus is being placed on portfolio transformation and reorganization as they seek to optimize their growth strategy for a post-pandemic world.
More than three-quarters of Eurozone respondents (77%) have conducted comprehensive strategy and portfolio reviews during the pandemic. For two-fifths of respondents (40%), the reviews were unplanned and in direct response to changing events.