Page 59 - RusRPTJan21
P. 59
In month-on-month terms October saw a large bounce back with companies earning RUB1,452bn in the month against the RUB470bn they earned the month before.
The month-on-month earnings in October was very strong and even ahead of the results of the last three years as the pent up demand from the summer’s lockdown was released.
October was the first month of “normal” profits for Russian companies as earnings have been below par for every month this year, although in June and July earnings were only slightly below previous years. However, the strong profits in October are unlikely to repeat themselves in November and December as these months were increasingly affected by the second wave of the coronavirus that has been twice as bad as the first wave.
Russian compares saw a 48% decline in earnings for the RTS index –
Russia is one of the heaviest hit countries by COVID-19.
In 2021, earnings for the RTS index are expected to jump by the same 48% y/y versus 32% for the MSCI EM. But that means cumulatively, Russia will still lag EMs in terms of earnings.
59 RUSSIA Country Report January 2021 www.intellinews.com
