Page 33 - RusRPTMay19

That result is down from the 63% of companies that reported better than expected results in the third quarter of last year – the best result since the start of 2017 – but outlook for upside surprise on earnings this year is already looking up.
Taken together the increase in profits is not feeding through to a general recovery for the Russian economy, which is expected to put in a very lacklustre growth of 1.3% this year, but at the microeconomic level things are picking up.
The lack of a trickle down to the general population from the strong corporate results was highlighted after real disposable incomes fell 2.3% in the first quarter of this year as Russia’s incomes go into their sixth year of stagnation.
The rising profitability is also seen in the improving business confidence and manifest in a raft of IPO and SPO plans announced in recent months. However, actually getting these IPOs away remains hard. Russia has not seen an IPO since two mid-cap players – shoe retailer Obuv Rossii and transport company Globaltruck – listed in 2018.
33 RUSSIA Country Report May 2019 www.intellinews.com