GROWTH AMBITIONS As outlook for 2018, commercial executives seem to be slightly less optimistic in regard to their growth targets than what we have seen in the beginning of 2017. The growth targets for the next 12 months as of Q4 are 8% on average for both revenue and EBIT, which indicates that commercial executives are somewhat less optimistic of their future financial performance compared to what we have seen the last year. Figure 1 – Growth ambitions regarding revenue and EBIT REVENUE (%) Valcon’s Sustainable Growth Line 40 35 30 25 20 15 BtG 10 BtB 5 BtC 0 0 5 10 15 20 25 30 35 40 EBIT (%) As illustrated in Figure 1, business-to-business marketers are the most optimistic with average growth targets of 9% for both, revenue and EBIT. Commercial executives representing business-to-consumer companies are slightly less optimistic about the future with average targets of 6% and 5% on the top and bottom line, respectively. The Sustainable Growth Line, also depicted in Figure 1, represents Valcon’s suggested growth path in which revenue and EBIT targets are always balanced. To enable that kind of sustainable growth, commercial executives must find the “perfect” balance between applying enough transparency and governance to avoid dilution of revenue down through the P&L and simultaneously boosting the top line – e.g. by launching new products and services. 4
Download PDF file