Business Wins and Losses: The Stunt Show of Global Shifts
According to fresh research from EY‑Parthenon, the “big movers” of the business world are finding that everything from wars to surprise tax hikes is making headlines in the profit section. The study peels back a full decade of jaw‑dropping economic and geopolitical twists and shows that most of the money made by UK companies actually comes during a tiny slice of the year – the same slice that sees the flash of some global crisis.
What the Numbers Reveal
- FTSE 100’s Golden Hours – Nearly 60 % of returns stem from just 59 days a year. That’s 16 % of the calendar filled with events that pretty much turned the economy upside down.
- Global Profit Hit – From 2017 to 2024, the top 3,500 listed firms worldwide lost a colossal $320 billion during the same turbulent times.
“If you’ve been riding smooth waves of low interest rates and easy geopolitics, the tide’s shifted,” says Mats Persson, EY‑Parthenon’s UK macro strategist. “Now, government moves and global drama are reshaping how companies grow and how profits look.”
Winners vs. Losers – When the Jigsaw Piece Fits
The study highlighted a group that turned the chaos into an advantage:
- Profit‑Savers – Some firms in what the paper calls “geopolitically exposed sectors and regions” dodged the volatility or even rode it to higher margins.
- Smart Diversification – These powerhouses mixed up their business mix and kept costs in check.
- Policy Masters – They kept their ears to the ground, understood the changes, and flexed their operations to fit the new landscape.
- Governance Refresh – Boards updated their playbooks to answer the rubrics of today’s world.
“If you want to thrive in this new reality, take notes from these leaders,” Persson advises. “IT’s a lesson book for CEOs and boards on staying sustainable over the long haul.”
Takeaway for the Boardroom
Think of the old playbook as a VHS tape – it’s high time to upgrade to a streaming strategy. Blend flexibility, foresight, and a touch of strategic nudge and you might just turn those unpredictable global events into money‑making tomorrows.
Market shifts are creating ‘winners and losers’
How the Big Bosses Are Coping With the World’s Whiplash
When the global economy turns into an unpredictable roller coaster, companies that keep their profits on track are the ones to watch. EY‑Parthenon’s fresh “Macro & Geostrategy” group has been tracking nearly 3,500 enterprises worldwide—each pulling in more than a billion dollars in revenue—and figured out how macro‑economic twists and geopolitical drama are eroding or protecting EBITDA margins.
Key Findings (in plain English)
- Only one in ten of these giants (415) managed to stay in the top‑quartile of profit margins from 2017 to 2024.
- One out of every four (1.25% of the total) lost at least 5% of its EBITDA, wiping out a staggering $320 bn in earned profits.
- The pace at which the once‑top‑dog firms fell into trouble almost doubled its speed during the 2022‑24 period—over 11% slipped into under‑performance.
- And if that didn’t sound like a sob story, 179 (5%) firms actually bounced back from the bottom to the top in the past decade.
- In China alone, 40% (335 companies) saw their EBITDA slide by nearly $73 bn, predominantly in real estate, steel, and construction.
- In the UK, of the 100 firms studied, 14 plummeted, losing a total of $2.5 bn amid macro turbulence.
Why Some Firms Do Better Than Others
Even when their business conditions look almost identical—think automotive, industrial, construction, energy—the profits tell a different story. It turns out that a company’s “playbook” for dealing with macro and geopolitical stormy weather is the real differentiator.
Mats Persson’s Take: “Three Little Ways to Stay Safe”
1. Build macro‑learnings into the business plan—not just talk about them.
2. Diversify the playground—don’t rely on a single policy or region.
3. Launch concrete scenario planning—tied to real triggers and KPIs.
He added that top firms weave these high‑level insights into everyday decisions—from trade flows and financing to cost structures and ops models—while keeping governance strong and talking openly with partners along the chain.
Bottom Line: Resilience is a Multi‑Layered Act
When the world throws unexpected curveballs, the companies that hold their EBITDA steady are the ones that keep refining their strategies, staying diversified, and translating those long‑term forecasts into day‑to‑day actions. For the rest, the key takeaway? Treat every macro‑shock as a chance to pivot, or at least to become a better prepared “future‑ready” business.
