2023-05-14 10:05:40
Es is a recurring image of the past few weeks. Whenever companies report on their business, they can point to their pricing power. Recent example on Friday the alliance. Their chief financial officer called it “healthy pricing.” I mean: The group was able to raise the price and the customers swallowed it. Half of the increase in turnover in property and casualty insurance is now due to higher prices. The group’s total profit rose by 24 percent to 3.7 billion euros in the first three months of 2023. Allianz joins the series of reports that, in addition to higher sales, can also report higher profits thanks to price increases. With a share of price increases in sales growth of 50 percent, Allianz is still below average. On the market, there is talk of more than 70 percent that price increases account for the increase in sales.
The good thing for companies and their shareholders: Unlike in the spring and summer of 2022, when the price increases were largely offset by higher costs for oil, gas and electricity, energy and transport costs have fallen since then, and the price increases by companies are increasingly leading to higher prices profit increases. An initial evaluation by the consulting company EY for the Dax shows a sales increase of 7 percent in the first quarter after 34 out of 40 quarterly reports. The advantage of listed companies: They are often industry giants with market power and can push through higher prices.
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