Sector Developments & Insights - March 2021 - Bank of ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Sector Developments
& Insights
March 2021
Classification: Green
Contents Introduction Click here Agriculture Click here Food & Drink Click here Healthcare Click here Hospitality Click here Retail Click here Technology, Media and Telecoms (TMT) Click here Motor Sector Click here
Introduction from June Butler
– Head of Sectors – Bank of Ireland
june_m.butler@boi.com
087 601 5415
Welcome to the latest issue of our Sectors Developments and Insights update. It has been a turbulent
start to 2021 for many of our customers as they navigate further COVID-19 related restrictions and
Brexit teething issues. However, renewed optimism linked to the roll-out of the vaccine programme is
also evident and businesses across all sectors are examining how best to position themselves to ensure
a robust, sustainable future.
Supporting our Customers
We continue to proactively engage with our customers and
their advisors nationwide and have supported investment
plans across a range of sectors to date in 2021. In February
we held a successful “Outlook 2021” virtual session attended
by interested parties/stakeholders from across the business
community. We will continue to organise bespoke online
events focusing on specific sectors and funding mechanisms
as the trading landscape of 2021 develops.
Our Sectors development guide published in February
outlines the key trends to emerge in 2020 and the
outlook for businesses in 2021 across seven key
sectors. Please see attached link to this comprehensive
document. https://businessbanking.bankofireland.com/
app/uploads/BOI-Sectors-Team-2020-Insights-and-
2021-Outlook-February-2021.pdf?_lrsc=cfc99e3b-f911-
4f17-937f-5568700543a4&utm_source=elevate&utm_
medium=social&utm_campaign=LinkedIn
Our Sectors team are recognised leaders within their
respective areas and passionate about the development of a
vibrant Irish business eco-system. Please feel free to contact
us - all of our individual contact details are contained herein.
As a team we are looking forward to engaging and supporting
Irish business to thrive in 2021 and beyond.
Classification: Green 3
Agriculture
Agriculture
Eoin Lowry
eoin.lowry@boi.com
087 223 4061
Increased Farm Incomes Firm dairy markets driven by Chinese and
Teagasc is now forecasting a 3% increase in 2021 farm South East Asian demand
incomes, following the EU-UK trade deal in their revised Global dairy markets continue to firm with New Zealand’s
“Outlook 2021 - Economic prospects for Agriculture” GDT auction up a further 15% last week. Auction prices
document. It is predicting that average farm incomes will are up 35% since Mid-November. Milk prices at Irish co-ops
be €25,600 in 2021. It is predicting modest increases in milk have been increasing and were up 0.5c/l for January supplies
prices along with a 4% increase in beef and sheep meat to around 31-32c/litre base. The reason for the increase
prices. On tillage farms, a combination of higher production, is primarily demand driven by China and South East Asia.
improved income from livestock and a pilot straw chopping The IFA is claiming that the rise in commodity prices is the
scheme are forecast to increase incomes by 17% in 20201. equivalent to a farm gate price of over 40c/l for farmers. It
is difficult to see prices rising to such a level but it shows
Cows out on grass due to milder weather that there is some scope to see price increases over the all-
The weather has been pretty benign over the last few weeks important next few months in terms of milk supply.
as farmers prepare for the busy spring season. Calving is
over 60% complete on most farms after a busy few weeks More positivity in beef markets
and tillage farmers are ready to sow spring crops once There is a lot more positivity in beef markets than this time
ground conditions allow. Grass growth has been good last year. Prices are in the range €3.75-3.80/kg (Steers).
thanks to recent mild weather with cows out at grass in the While it is still a bit off €4/kg, it is going in the right direction.
southern counties for a number of weeks now. It will be interesting to see developments in prices once
economies re-open in coming months. The food service
channels across UK and Europe are empty and will take
significant restocking and this should see an improvement
in prices in the next 6-8 weeks.
Pig price drop on the back of increased
supply from Germany into European
Market
Pricing is currently running at €1.52/kg - significantly back
from €1.73/kg average in 2020 and expected to average
€1.58/kg this year. This price drop is mainly as a result
of African swine fever in wild boars in Europe, which has
banned exports of pig meat from Germany to China.
Increased grain pricing: Spot prices for dried wheat is at
€245/t and dried barley at €215/t. On average dried wheat
and barley prices are 30% (€50/tonne) higher than this time
last year. Markets are firm, with China import demand and
weather the most significant drivers. It is likely that these
strengthened grain prices will hold for harvest 2021.
Fertiliser price increase due to global
demand
Fertiliser prices continue to rise on the back of global
demand. Many farmers have purchased in early January-
prior to the price rises. CAN is ranging from €250-€280/t –
an increase of €50-60/t on last year. Urea is up €100/tonne
since January.
Classification: Green 5
Food & Drink
Food & Drink
Roisin O’Shea
roisin.oshea@boi.com
087 439 5346
Brexit is affecting food & drink imports Across the sector the costs of receiving and sending goods
more than exports to and from Britain has increased due to the new formalities,
increases in freight costs and in some cases tariffs. A number
Brexit was the key focus for Irish food and drink businesses
of trade bodies have highlighted the likelihood of future
for quarter one 2021. Exports to the UK largely flowed freely,
consumer price increases as a result2.
benefitting from the Trade & Cooperation Agreement as well as
the decision by the UK government to impose minimal import
New Brexit Related Business
checks in the first quarter. Imports into Ireland, were more
challenging. The more challenging issues on imports, due to
Opportunities
the variety/volume profile, can also be seen in the number of Irish producers secured additional business replacing British
import declarations processed from the UK for the first two products that were delayed or delisted due to difficulties
months of the year (2.6M) compared to export declarations navigating the new customs structures. Fortunately, delays in
(320k) even though the number of actual truck movements was ingredients and packaging components were largely mitigated
relatively similar (46.5k out and 50.8k back)1. due to stock piling and a high degree of preparedness by the
industry.
Take up on the new direct ferry services to the continent has
been strong, with little appetite from Irish producers to take on
the challenge of the land-bridge, at least in the first quarter.
Looking ahead the next challenge comes in April when the full
sanitary and phytosanitary checks are due to be imposed in the
UK. While Irish companies are well prepared, there is concern
that UK infrastructure and system will not be ready in time3.
Mass COVID-19 testing rolled out for UK
food manufacturing sites
COVID-19 continues to cause challenges for the sector,
particularly from an operational stand point. The UK has rolled
out rapid COVID-19 testing to a number of food manufacturing
sites4 and this will be looked at with interest by the sector here.
From a sales perspective, the focus remains on grocery sales.
Commodity Price Rises
Commodity price spikes have also caused challenges for a
number of processing businesses. Agricultural commodity
prices rose again in January, reaching their highest level since
June 2014 – this was driven in particular by grain prices5.
1
https://www.irishtimes.com/business/economy/trade-with-britain-will-not-return-to-pre-brexit-model-exporters-warned-1.4498207
2
https://www.rte.ie/news/business/2021/0128/1193633-irish-bakery-association-warns-bread-prices-will-rise/
3
https://www.telegraph.co.uk/business/2021/02/14/ports-press-ministers-delay-introduction-full-border-checks/
4
https://www.thegrocer.co.uk/health/how-does-the-governments-rapid-covid-testing-scheme-work-for-businesses/652474.article
5
http://www.fao.org/worldfoodsituation/foodpricesindex/en/
Classification: Green 7
Healthcare
Healthcare
Hilary Coates
hilary.coates@boi.com
087 255 3314
Increased optimism with the rollout of the vaccine. Interest in the nursing home sector from overseas operators and
investors remains strong despite lower occupancy and proposed changes in models of residential care and regulation.
Nursing Homes • A €30m ( 2.8%) reduction in the Nursing Homes Support
Health Service Executive (HSE) 2021 National Service Plan : 6 Scheme (NHSS) annual spend with a 2021 budget of
The HSE 2021 Service Plan, published this week, comments €1,044.2m with a projected decrease of 556 people in
that there is an over-reliance on residential models of care receipt of the NHSS (Fair Deal) together with a National
and a lack of services to enable Ireland’s ageing population to Performance Indicator of ≤3.5% of population over 65
maintain their independence and live well in the community. years in NHSS funded beds (based on 2016 Census figures);
The plan outlines proposed changes to the policy, funding • Providing five million additional home support hours;
and provision of long-term residential services including a this will include 230,000 hours of home support to be
‘home first approach’ that will have implications for nursing provided in conjunction with the roll-out of a pilot home
home operators going forward. These include: support scheme bringing the total projected quantum of
home support to 24.26m hours in 2021;
• Reviewing all aspects of rehabilitation and intermediate
• Developing a new model of service to provide intensive
care in Ireland, with a view to making recommendations
home support to 1,150 people as an alternative to
on future models of service;
long-term residential care placement; this will include
• Developing a plan to increase, over time, public long-
establishing a national home support office to support a
term residential care capacity, to rebalance the current
statutory home support scheme;
20:80 public/private split;
• Fully roll out interRAI Single Assessment Tool - a
• Repurposing of residential care services to deliver
comprehensive IT based standardised assessment used
3,400 additional intermediate and rehabilitation places,
to assess the health and social care needs of people
developing reablement and outreach services and by
(primarily those over the age of 65 years) who may
more than doubling home support hours with an aim
be looking for support under either the NHSS or the
of reducing the need for people aged > 65 to be in long
Home Support Scheme during 2021, supported by the
stay care. This expansion will be achieved through the
appointment of 128 interRAI assessors;
addition of 617 rehabilitation beds in public facilities,
• Progress greater integration of private nursing homes
185 repurposed public NHSS beds and 448 privately
within the broader framework of public health and social
purchased bed capacity for transitional care. HSE facilities
care in line with the recommendations of the COVID-19
being upgraded to meet HIQA regulations and planned
Nursing Homes Expert Panel Report;
to be fully operational in 2021 at a capital cost of €65m
• Developing and implementing the framework for safe
include:
nursing staffing and skill mix in all residential care facilities.
Facility County Additional Beds Capital Costs
Carndonagh Community Hospital Donegal 0 €4,240,000
Dungloe Community Hospital Donegal 0 €3,310,000
Falcarragh Community Nursing Unit Donegal 13 €3,500,000
St John’s Community Hospital Sligo 0 €8,030,000
Community Hospital of Assumption, Thurles Tipperary 0 €2,600,000
Raheen Clare 0 €3,170,000
Caherciveen Community Hospital Kerry 0 €3,850,000
Listowel Community Hospital Kerry 0 €3,440,000
Castletownbere Community Hospital Cork 0 €3,760,000
Clonakilty Community Hospital and Long Stay Cork 0 €6,890,000
Monfield Nursing Home, Rochestown, Cork Cork 35 €4,330,000
Skibbereen Community Hospital (St Anne’s) Cork 0 €5,750,000
Sacred Heart Hospital Carlow 0 €3,440,000
Sean Cara Dublin 0 €8,570,000
6
https://www.hse.ie/eng/services/publications/serviceplans/national-service-plan-2021.pdf
Classification: Green 9
COVID-19 and Vaccination Programme: There were six • Aperee has been confirmed as the buyers of a greenfield
nursing home outbreaks notified in week 8, 2021. From site of 7.2 acres on Clarkes Hill in Rochestown, Cork, for
22/11/2020 to 27/02/2021, 247 outbreaks in nursing homes a reported €4.75m. The Group is also projected to start
or community hospital/long-stay units have been notified work on a 100 bed home at a former Church of Ireland
and 176 of these outbreaks remain open7. The latest Report8 rectory in Glanmire, Cork.
shows that 159,350 vaccines have been administered to
Health Information and Quality Authority (HIQA): HIQA
residents aged >65 in long term residential settings (1st
published a report, The Need for Regulatory Reform9, which
dose: 96,696, 2nd dose: 62,654). Early data has shown a
summarises its experience of regulating social care services
drop in the number of nursing home COVID-19 cases, and
over the past 10 years and the changes required to make
planning has commenced to review visiting policies for
regulation fit for purpose into the future. It advises that
people in nursing homes and long-term residential facilities.
the regulations are not maintaining pace with the evolving
Occupancy: Operators are reporting continued reduced nature of services and that some regulations are not aligned
occupancy levels particularly in homes with twin rooms with Sláintecare’s principal policy objective to get ‘the right
or those homes that experienced a COVID-19 outbreak. care, in the right place, at the right time’. The Report asks
A number of operators have begun to plan for internal that consideration be given to the potential implications
reconfiguration to reduce multi-occupancy and twin rooms of consolidation, acknowledgement of the risks involved
that will facilitate the future provision of safe care to residents in concentrating care facilities within a small number
and meet infection prevention and control standards. of large providers. According to HIQA “These risks relate
both to the impact on the social care system when services
Staffing: Throughout the pandemic, staff in the health
go into liquidation and the resultant anxiety experienced by
sector and in particular those working in nursing homes have
residents and families when alternative care facilities have
demonstrated extraordinary resilience and commitment.
to be found.” This consolidation in ownership has been
The HSE’s national service plan identifies the requirement
identified as causing significant difficulties for regulators
to increase capacity through permanent staffing of >16,000
given the complex and changing ownership patterns as
additional whole time equivalents (WTE) including an
reported in the aftermath of the South Cross failures in the
additional 1,000 nurses. In addition the implementation
UK. HIQA reported that it has recently experienced some
of safe staffing framework in nursing homes will require
difficulties in terms of identifying who is the responsible
additional staff. Going forward, the biggest challenge for
legal entity for providing a service. HIQA made the following
all areas of the health sector will be the attraction and
recommendations:
retention of staff – the delay in the registration of healthcare
• a comprehensive review of the current regulations
professionals following Brexit may lead to further
pertaining to health and social care services in Ireland,
recruitment challenges and the competition between the
and the establishment of a regular review process
public and private sector may result in higher staff costs.
• the reform of the Health Act 2007 to take account of the
Consolidation: There is continued fund and investor changing landscape in health and social care services
interest in the nursing home sector despite lower occupancy • the introduction of regulation into other forms of care
and proposed changes in models of long-term residential that are currently unregulated and whose service users
care. These market changes have resulted in a shift from may be vulnerable
the traditional owner-operator model in Ireland to the • a framework that makes a clear distinction between
more European propco/opco model with the transactions the purchaser and provider of services along with clear
seeing the exit of a number of longtime independent owner governance and accountability arrangements
operators. Transactions in 2021 included: • consideration to be given for the development of
• DomusVi: Spanish investor group DomusVi, who have more a comprehensive, integrated social care policy that
than 400 nursing homes in Europe and South America, were considers social care in its totality alongside Sláintecare.
confirmed as the purchasers of the Trinity Care Group of
seven homes and 491 beds (plus 1 home under construction Pharmacies
in Ashtown). Belgian Healthcare REIT, Confinimmo
The demographics and corresponding rise in chronic
immediately acquired the seven trading homes.
conditions with resultant polypharmacy continues to favour
• JWP Enterprise Fund: A number of nursing homes
pharmacists and contribute to the sector recovery. The
have been purchased under the immigrant investor
numbers of pharmacies per capita is high and the sector
programme with a reported €125m invested to date. JWP
has seen significant reform in the last decade with average
Enterprise Fund reported the acquisition of the Arbour
income and EBITDA reducing on an annual basis.
Care Group’s five nursing homes with 253 beds. JWP now
owns 7 nursing homes with a total of 350 beds. The 2020 transaction market was sluggish with concerns
• Belgian REIT Aedifica NV/SA announced its entry to the raised about the sustainability of EBITDA for retail focused
Irish market with the acquisition of 184-bed Brídhaven pharmacies. But pharmacists have demonstrated their
Care Home for c. €25m. The home is let to the Emera resilience in the past and COVID-19 has fueled a shift in focus
backed Virtue Group on the basis of a new irrevocable 25- to clinical care. This may result in the closure of a number
year triple net lease that is fully indexed to the consumer of outlets with a retail focused business model and further
price index (CPI). The initial net rental yield amounts to consolidation of the sector. A busy 2021 transaction market
approx. 5.5%. is projected with a number of deals already on the table.
6
https://www.hse.ie/eng/services/publications/serviceplans/national-service-plan-2021.pdf
7
https://www.hpsc.ie/a-z/respiratory/coronavirus/novelcoronavirus/surveillance/covid-19outbreaksclustersinireland/COVID-19%20Weekly%20Outbreak%20Report_
Week082021_02032021_WebVersion_v.1.1.pdf
8
https://covid19ireland-geohive.hub.arcgis.com/pages/vaccinations
9
https://www.hiqa.ie/sites/default/files/2021-02/The-Need-for-Regulatory-Reform.pdf
Classification: Green 10 Hospitality
Hospitality
Gerardo Larios Rizo
gerardo.lariosrizo@boi.com
087 795 1253
Extended COVID-19 restrictions result in Tourism offer
adjusted 2021 forecasts • Fáilte Ireland unveiled a €6m domestic ad campaign
The recent decision of the Irish government to review and last January that will encourage Irish residents to “Keep
discovering” Ireland by taking more than one holiday trip
extend restrictions as part of the last update on the living with
when the time is right.
COVID plan has forced operators to review their 2021 forecasts
• Ireland’s first and only luxury sleeper train, the Belmond
and adjust their cash flows accordingly. Although the path for
Grand Hibernian (the same company that operates the
the reopening is not very clear, the Taoiseach did state that Orient Express) is pulling out of Ireland.11
he did not envisage a reopening to take place before mid- • Hotel development pipeline remains strong despite the
summer. The announcement encompassed some good news challenges
about the current measures to support businesses including • Cork – 131 new rooms by 2022 plus an additional 1,564
the COVID Restrictions Support Scheme (CRSS), the Pandemic speculative.
Unemployment Payment (PUP) and the Employment Wage • Dublin – 6,244 new rooms by 2023 plus an additional
Subsidy Scheme (EWSS) which have now all been officially 12,710 speculative.
extended to the end of June. Minister Catherine Martin is
also proposing a number of additional support measures Review of pub licensing laws and court
including an extension of the 9% hospitality vat rate to 2025 ruling on Covid interruption insurance
and an extension to the stay and spend scheme to Dec 2021. • The Irish High Court ruled that four publicans insured by FBD
were entitled to be indemnified for losses under lockdown-
Progress has also been made on the mandatory hotel
linked claims, the decision could have implications for an
quarantine as the cabinet signed off on the primary legislation estimated 1,300 pubs who were sold the same policy.12
governing the introduction of the same. The legislation to • Plans by Minister of Justice Helen McEntee to reform alcohol
underpin the system is likely to take two to three weeks to licensing laws will look at pubs being allowed to stay open
pass all stages in the Oireachtas. later as part of Government’s efforts to boost the hospitality
sector’s recovery. The measures will not be introduced until
Uncertainty continues around the next year or later.13
prospects for large events
Uncertainty prevails about large gatherings in Europe this year Covid uncertainty impacting forward
with a number of high profile events still being planned to go bookings for hotels
ahead across the continent. Meanwhile in Ireland promoters • Pickup for Irish hotel bookings has been strong over the last
have confirmed that a game scheduled to be played in couple of weeks but overall numbers are at a historical low
the Aviva Stadium in August between the universities of according to a recent survey from the Irish Hotels Federation.
Illinois and Nebraska will not go ahead due to coronavirus Booking levels are currently at an average of 21% for July
restrictions. It is estimated that about 25k high-spend visitors and 20% for August which are traditionally the two busiest
would have travelled for the match.10 months of the year.14
10
Irish Times – Feb 18th 2021
11
www.hospitalityenews.ie - Feb 19th 2021
12
www.reuters.com – Feb 5th 2021
13
www.thetimes.co.uk - Feb 23rd 2021
14
www.ihf.ie - Feb 22nd 2021
Classification: Green 12 Retail
Retail
Owen Clifford
owen.clifford@boi.com
087 907 9002
Strong performance continues in grocery in the period. Given the Level 5 restrictions in place it is
stores unsurprising that retail sales volumes (excluding Motor) are
down by 9.8% in January 2021 when compared with January
Grocery retailers continue to deliver a strong performance
2020.18 Shopping patterns and sub-sector performance will
with the latest Kantar data outlining sales increases of c15%
continue to be analysed closely to ascertain more lasting
when compared with 2020. This data reflects the shopping
sub-sector trends emerging in a post COVID-19 environment.
patterns within the twelve weeks to 24th January 2021. Given
the COVID-19 restrictions in place, 12% of shoppers decided Covid related consolidation & mergers in
to utilise an online channel for their grocery purchases.
the fashion sector
This resulted in online sales increasing to 5.2% of all sales
COVID-19 has driven consolidation and mergers/acquisition
compared to 2.7% in the same period in 2020.15
activity in specific sub-sectors with high-street fashion
Investment from leading brands in sustainability initiatives seeing particular activity. Online retailers Boohoo and ASOS
continues as the Irish grocery sector seeks a more have in recent weeks collectively completed the purchase
environmentally friendly operating model. BWG announced of the Debenhams, Topshop and Miss Selfridge brands.19
a €25m investment in solar panels, energy efficient The changing retail property landscape and transition to
equipment and fleet management whilst Aldi committed to an online/omni-channel model for the fashion sub-sector
planting one million indigenous woodland trees pre 2025 should facilitate opportunities for smaller, Irish retailers to
during February.16 showcase their brands in prominent city-centre locations via
pop-up stores etc. in H2 2021.
In personnel developments, Musgrave Retail Partners
Ireland which controls the Supervalu and Centra brands has Omnichannel retailing here to stay
announced Ian Allen as its new managing director.17
Overall, the acceleration towards omni-channel retailing
during 2020 has led consumers to now expect a
Covid lockdown affecting 2021
complementary blend of digital and physical platforms
performance in non-grocery retail from their preferred retailers. If retailers want to maintain
The latest Retail Index from the Central Statistics office customer engagement they need to strongly consider
(CSO) highlights the diversity and current fluctuations being providing a digital offering that is complementary to
experienced by the wider Irish retail sector. Sales volumes their existing offering. The consumer is also much more
(excluding motor sales) were up 4.6% in Quarter 4 2020 community and sustainability conscious - meeting
when compared with the same period in 2019. This was customer expectations in respect of these areas requires
driven by exceptional physical store sales performances in consistent communication and appropriate investment.
the grocery, Electrical, Furniture and Homeware subsectors Irish consumers want to support Irish retailers; however the
(amongst others). Sales in the Fashion, Newsagent and expectation in respect of prompt delivery and provenance/
Department store sub-categories showed a marked decline quality of goods remains a pre-requisite.
15
Kantar – Irish Grocery market share – 08/02/2021
16
Sunday Times: 28/02/2021 & Shelflife magazine – February edition
17
Musgrave Group announcement – 21/12/20.
18
CSO Retail index – issued 01/03/21.
19
www.rte.ie – 01/02/21 & various media sources
Classification: Green 14 Technology, Media and Telecoms (TMT)
Technology, Media and Telecoms (TMT)
Paul Swift
paul.swift@boi.com
087 251 6681
Q1 2021 snapshot:
Over recent weeks we have seen Apple announce the most
profitable quarter ever, with sales of $111.4bn20 (for its fiscal
2021 first quarter); Enterprise Ireland21 launched its latest €1m
Competitive Start Fund aimed at companies with an innovative
product or service, providing up to €50,000 in equity funding
and Flipdish, the food-ordering platform received €40m22
in investment funding, from Some subsectors (hospitality,
aviation and travel/leisure) continue to be subdued, as
lockdowns and restrictions have a downside impact on sales
and revenue generation. Whereas IT services are reporting
better than anticipated revenues for 2020 and a strong pipeline
for the coming year. The EdTech sector is also reporting growth
in revenues and expansion into new markets.
Sector continues to demonstrate its
resilience:
Over recent weeks we have seen signs of continued buoyancy
across the indigenous sector as companies such as Ergo, HR
Locker, Orreco, Smarttech, FoodMarble and Triangle all made
companies. This is an excellent example of business and
announcements on their immediate hiring plans. Likewise,
academia working together to ensure that graduates get
we have also seen continued investment in by multi-nationals
‘hands-on’, practical experience that they can then bring to
across the TMT space with recent announcements by Microchip,
potential employers. In simple terms, it means graduates from
BT, Huawei, Personio and Indigo Telecom subsidiary 4Site,
this program will gain two years of actual experience while
demonstrating the confidence that international operators
studying; eliminating the need for training.
have in Ireland’s recovery from the pandemic.
Immersive Software Engineering (ISE) Blockchain and how it is evolving:
program set to disrupt how software Blockchain is seen as a revolutionary technology that will change
engineering is taught: how we interact and transform day to day transactions, with a
growing body of live examples across healthcare, supply chain
A new partnership recently announced between University and agriculture. Blockchain Ireland hosts monthly meetings
of Limerick and over a dozen leading tech companies from to share insights and expertise and to promote the growth
Ireland and around the world (such as Analog Devices, Stripe, of blockchain technology in Ireland. The next meeting takes
Zalando, Intercom, Shopify, Manna Aero etc.) is set to redefine place, virtually, on March 23rd. Keynote address by Peteris
how computer science education will be taught in Ireland. Zilgalvis, Head of Unit for Digital Innovation and Blockchain
This new four-year integrated undergraduate and master’s at the European Commission. For more details visit: https://
degree program will see students undertake paid residencies www.ictskillnet.ie/training/blockchain-irelands-monthly-
(like medical degrees)/work placements with participating meeting/
20
https://www.apple.com/ie/newsroom/2021/01/apple-reports-first-quarter-results/
21
https://www.enterprise-ireland.com/en/funding-supports/company/hpsu-funding/competitive-start-fund-all-sectors.html
22
https://sifted.eu/articles/food-delivery-flipdish-e40m/
Classification: Green 16 Motor Sector
Motor Sector
Stephen Healy
stephena.healy@boi.com
085 289 8600
In the month of February, new passenger car (PC) sales Market News
increased 6.9% year-on-year (y-o-y) to 13,834 units, Light The motor sector has adapted rapidly to challenges posed
Commercial Vehicle (LCV) sales increased 53.1% y-o-y (to 3,315 by the health crisis, utilising new digital measures to engage
units) and used imports declined 5.3% y-o-y (to 5,757 units). with consumers, and has moved from click and collect to
“click and deliver” measures in a very short period. The strong
PC Registrations performance and resilience of Irish motor dealers is borne
In the first 2 months, the market declined 10.6% y-o-y (to
out when comparing the sector to the UK and the EU, where
38,986 units). Toyota holds the #1 position with 14.2% market
new car sales fell by c. 40% and c. 24% respectively in the
share, followed by Hyundai with 10.6% in #2, Volkswagen with
month of January.
10.2% in #3, Skoda with 8.9% in #4 and Ford with 8.5% in #5.
A temporary VAT reduction from 23% to 21% was in place
LCV Registrations until the end of February 2021 and this was a driver of growth
In the first 2 months, the market increased 6.7% y-o-y (to 8,339 in vehicle registrations in the month of February. Pent up
units). Ford holds the #1 position with 24.2% market share, retail demand, noted in previous newsletters, is expected to
followed by Peugeot with 12.0% in #2, Volkswagen with 11.3% be released once restrictions are relaxed.
in #3, Renault with 11.0% in #4 and Toyota with 9.1% in #5.
Market Trends - New Passenger Cars
Used Imports Top 10 Models
Registrations of used imports declined 0.9% y-o-y (to 12,579
units) in the first 2 months of 2021. 7.0
6.0 5.9
Passenger Light Commercial Used Imported 5.0 4.6
Car Sales Vehicles Cars 4.0
3.1 3.0 2.9
3.0 2.8 2.7 2.5 2.5
2.3
Feb Feb Feb 2.0
1.0
2021 YTD 2021 YTD 2021 YTD
-10.6% +6.7% -0.9%
0
ai ot
a
ot
a ta rd da ot
a
KI e
A
nd on oy lla oy V 4 yo ris
W
Fo cus ko via oy -HR V olf VW n
yu cs T oro T RA To Ya o S ta T C G u a t ag
H Tu C F
O
c Ti
g or
Sp
Market Share 2021 YTD Market Share 2020 YTD
Provincial Developments
February 2021 YTD Fuel Type Developments
FY 2020 FY 2021 YTD*
4.5 4.6
National Position 15.3
25.5
Used Imports (UI) -0.9% YTD
43.3 36.3
Dublin
36.9
N -13.0% YTD 33.6
UI +1.5% YTD
Rest of Leinster Diesel Petrol Hybrid EV *Feb YTD
N -8.8% YTD
UI -1.8% YTD
C02 Emissions
113.9
Connacht/Ulster* 106.2
N -8.2% YTD -6.8%
100.0
UI -0.3% YTD -5.8%
Munster
N -9.9% YTD *Ulster Border counties
2019 2020 2021 YTD*
Average Co2 (g/km)
UI -4.3% YTD *Feb YTD
Data Source: Society of Irish Motor Industry (SIMI). European Supporting our Customers
Automotive Manufacturers Association (ACEA). Data as at 28/02/2021 Bank of Ireland Finance (BIF) supports 13 motor franchises
representing c. 41% of annual new car sales and we remain
committed to our customers. Bank of Ireland and the Irish
motor sector is open for business.
Classification: Green 18 Bank of Ireland is not responsible for the information on third party websites.
This document has been prepared by Bank of Ireland Business Banking for informational purposes only. No to be reproduced, in whole or in part, without prior permission. Any information
contained herein is believed by Bank of Ireland to be accurate and true but the Bank expresses no representation or warranty of such accuracy and accepts no responsibility whatsoever for any loss or
damage caused by any act or omission taken as a result of the information contained in this document. You should obtain independent legal advice before making any decision.
Bank of Ireland is incorporated in Ireland with limited liability. Bank of Ireland is regulated by the Central Bank of Ireland. In UK, Bank of Ireland is authorised by the Central Bank of Ireland and the
Prudential Authority, and is subject to limited regulation by the Financial Conduct Authority and the Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the
Prudential Regulation Authority and our regulation by the Financial Conduct Authority are available from us on request.
Registered Office: Head Office, 40 Mepsil Road, Dublin 4. Ireland. Registered Number: C-1.You can also read
