Revenue and Profit Expectations

Growth anticipated in 2012

Do you expect your company's revenues and profits to grow, contract or stay the same in 2012?

Although 38% expect flat economic growth in 2012, the majority of CFOs in Asia (58%) still expect their own companies' revenues to grow this year.

The most optimistic are CFOs based in India (77%), followed by Singapore (64%), China (60%) and South Korea (60%). The most pessimistic country is Japan, where only 49% of CFOs expect revenue expansion.

While 58% of CFOs in Asia expect revenues to increase in 2012, fewer (52%) forecast rising profits. This indicates that some companies are sacrificing profit margins to obtain greater market share.

This particularly appears to be the case in South Korea, where only 42% of CFOs expect rising profitability compared with 60% who forecast higher revenues.

The gap between revenue and profitability expectations is also quite wide in several other countries:

  • China (60% and 49%),
  • Singapore (64% and 54%)
  • India (77% and 68%)
  • Hong Kong (58% and 50%).
Percentage of respondents expecting revenues and profits to increase in 2012