{"id":7347,"date":"2019-08-28T07:40:49","date_gmt":"2019-08-28T07:40:49","guid":{"rendered":"http:\/\/www.groupcaliber.com\/?p=2838"},"modified":"2022-01-24T12:58:55","modified_gmt":"2022-01-24T12:58:55","slug":"q2-2019-results-germany-dax-30","status":"publish","type":"post","link":"https:\/\/groupcaliber.banyodev.dk\/index.php\/2019\/08\/28\/q2-2019-results-germany-dax-30\/","title":{"rendered":"Q2 2019 Results: Germany DAX 30"},"content":{"rendered":"

As the flowers came to bloom here in Q2, temperatures may have risen but trust in Germany\u2019s DAX 30 has fallen. It appears global trade tensions and political uncertainty have not only affected GDP<\/a> negatively – but public sentiment as well, with the average Trust and Like Score of Germany\u2019s DAX 30 companies falling by 1 point from 62.6 in Q1<\/a> to 61.6 in Q2. We have seen similar trends around Europe this quarter in both the UK<\/a> and Denmark<\/a> \u2013 although the biggest effect is seen in the UK with an almost 2-point decrease in Q2. Likewise across Europe, the German public is losing trust – almost a third of Germany\u2019s top companies experienced a significant decrease in their reputation score during Q2, while only 4 companies saw significant improvements. Let us have a look at what\u2019s going on with Germany\u2019s DAX 30.<\/p>\n

Germany\u2019s Most Trusted and Liked Companies<\/span><\/strong>\"Germany's<\/a><\/h2>\n

Spring typically signifies a time of new growth and it seems Adidas <\/strong>has taken advantage of the season. Despite a rough start in 2019, the sportswear giant\u2019s 3.2-point increase was enough to bypass Siemens to retake 1st<\/sup> place as Germany\u2019s most trusted and liked company for Q2 2019. As consumer expectations shift towards companies with purpose perhaps Adidas isn\u2019t one to miss a trend. With news late last quarter of equal pay FIFA bonuses possibly spilling over, the release of a 100% recyclable running shoe made up of recycled ocean plastics, or even the rumors of Beyonc\u00e9 choosing Adidas over Reebok<\/a> for diversity reasons, it seems the company\u2019s commitment to leading by example has won the hearts of the German public once again.<\/p>\n

As runner-up in 2nd<\/sup> place, Deutsche<\/strong> Lufthansa<\/strong> makes an impressive recovery this quarter with a 6.5-point rise \u2013making it our 2nd<\/sup> top riser for Q2. Though delays and cancellations may have been part of the reason for the company\u2019s reputational turbulence last quarter, it could be that delays and cancellations helped raise perceptions this quarter. In the start of Q2, technical irregularities<\/a> and bomb threats<\/a> had the potential to lead the company into reputational decline. However, Lufthansa\u2019s quick actions and systematic approach prioritized service and passenger safety. It seems the public understands things don\u2019t always go according to plan, but it\u2019s how corporations overcome these challenges that lead to reputational success.<\/p>\n

With the rise of Adidas and Lufthansa, Siemens<\/strong> gets bumped from 1st<\/sup> to 3rd<\/sup> place after a slight 2.9-point drop in perceptions over Q2. It\u2019s a close race at the top where just a couple points make up the difference. Nonetheless, Siemens holds a statistically steady score as one of Germany\u2019s top 3 most trusted and liked companies.<\/p>\n

Top Risers<\/span><\/strong><\/h2>\n

A rather surprising top riser this quarter is Volkswagen Group <\/strong>with a 6.9-point Trust and Like Score increase over Q2.\u00a0 Since we began monitoring perceptions in Germany, the automaker has continuously scraped the bottom of the charts following the emissions scandal popularly coined \u2018Dieselgate\u2019. This is the most significant rise we have seen yet \u2013 moving the company from second to last up to 23rd in the ranking. While the release of the all-electric ID.3 in May could have helped to signal a new climate-friendly direction for the company \u2013 we can\u2019t help but ask ourselves if the German public is finally willing to forgive the 2015 scandal. We have seen it has been difficult to rebuild trust, even after nearly four years. It will be interesting to follow perceptions over the rest of 2019 and see if VW\u2019s reputation may finally be recovering.<\/p>\n

After Lufthansa soars to the top to steal 2nd<\/sup> place, RWE<\/strong> becomes our third top riser of Q2. The energy supplier moves up the ranking with a 5.5-point increase in perceptions – landing it two placements ahead of Volkswagen in 21st<\/sup> place. With environmentalism and climate protection among the top priorities for German voters, RWE\u2019s reputational rise could have very well come from the cancellation of future investment in coal-fired power plants<\/a> to focus on renewables. Given the European Parliament elections this quarter, there appears to be an increase in perceptions for those acting ahead of regulation.<\/p>\n

\"Germany<\/p>\n

Top Fallers<\/span><\/strong><\/h2>\n

As emotions around the election heat up, Germany\u2019s largest real-estate group Vonovia<\/strong> came under pressure with politicians such as Robert Habeck (The Greens) and Kevin K\u00fchnert (SPD)<\/a> pointing fingers directly at private housing companies for the rent crisis plaguing major German cities. The company\u2019s increasing profits – partly due to rising rent prices – certainly didn\u2019t seem to help improve perceptions. It appears even the real-estate giant\u2019s housing guarantee for senior-aged tenants wasn\u2019t enough to stop the company\u2019s 9.8-point decline to an all-time low score of 35.6 points. With attempts<\/a> by CEO Rolf Buch to repair the company\u2019s reputation and address the housing crisis late this quarter, it will be interesting to see what happens in Q3.<\/p>\n

Last quarter Fresenius Medical Care<\/strong> entered the top-3 for the first time but it appears that the tides have changed with an 8-point fall in Q2. Interestingly parent company Fresenius holds a steady strong score in 5th<\/sup> place in the ranking and even Fresenius Kabi appears to be holding a steady strong score as well.<\/p>\n

Bayer<\/strong> suffered a reputational decline of its own with a 7.8-point fall in Q2 – \u00a0most likely due to the U.S. litigation rulings over the recently acquired Roundup herbicide. With such a high interest in environmentalism amongst consumers, the company continues to face backlash in Germany<\/a>. It is yet unclear whether Bayer\u2019s future sustainability strategy will help improve perceptions.<\/p>\n

Conclusion<\/span><\/strong><\/h2>\n

Overall, rising global tensions and uncertainty appear to be affecting public sentiment across Germany. Evidence suggests rising concerns of environmentalism and climate protection are moving from political debate to create an evolution in consumer expectations for German companies. Though the public is becoming more critical in Q2, Volkswagen makes a surprising start on the road to recovery and companies such as Adidas show reputational success can be led with purpose.<\/p>\n

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If you are interested in this topic you might like the following:<\/strong><\/p>\n

Q1 2019 results: Germany DAX 30<\/a>
\n2018 results: Germany DAX 30<\/a>
\nQ3 2018 results: Germany DAX 30<\/a>
\nThe problem with German companies<\/a>
\nAdidas is Germany\u2019s favorite company<\/a><\/p>\n