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Indicator Analysis: Wage purchasing power continues to fall sharply

12/5/2022 3:32 PM

According to data released today, annual growth in average wages in the Czech Republic accelerated in the third quarter of this year. It was 6.1% yoy in Q3 after 4.4% yoy in Q2. The yoy acceleration was mainly due to the lower comparative base of last year's third quarter, which was marked by the unwinding of pandemic-related extraordinary bonuses in the health and social care sector. In quarter-on-quarter terms, by contrast, we estimate that wage growth slowed temporarily from 2% (seasonally adjusted) in Q2 22 to 1.6% qoq. Tensions in the labour market are contributing to the continued rise in nominal wages in the private sector. In the public sector, wage growth was partly affected by the 10% increase in pay scales for some public administration workers from September. This will only become more pronounced in the Q4 data.

Autor: Jaromír Gec Show more

Latest comment from the equity market

Comment on financial results: Kofola: Solid sales growth, margin decline, full-year guidance adjustment

11/25/2022 9:02 AM

Kofola ČeskoSlovensko reported third-quarter results yesterday after the market closed, marking the strongest quarter seasonally. Revenues grew at a decent pace across all sectors. However, high inflation caused margins to decline. EBITDA were down 10.5% yoy to CZK462m. The numbers are 3.4% above consensus when comparing EBITDA but missed the market estimate on net profit by 2.5%. For the full year, Kofola should reach the lower end of the original guidance. It emerged that, in addition to the high prices of materials, the company is beginning to experience problems with cooling demand. Thus, meeting the target may prove to be a challenge.

Autor: Bohumil Trampota Show more