The Role of Financial Performance and Sustainability Reporting in the Competitiveness of Hungarian Agricultural Enterprises
Publication Name: Chemical Engineering Transactions
Publication Date: 2025-01-01
Volume: 121
Issue: Unknown
Page Range: 49-54
Description:
The agricultural sector faces numerous challenges and opportunities that influence farmers’ stability and competitiveness, while enterprises are increasingly required to report on their efforts to promote environmental sustainability. In Hungary, sustainability reporting is regulated by law. The relevant requirements entered into force on 1 January 2024 and will be gradually extended to an increasing number of companies. This study examines the economic and financial performance of a sample of Hungarian agricultural enterprises between 2019 and 2023, with particular emphasis on the rate of sustainable development. Financial indicators were employed to evaluate the performance of the enterprises, while sustainable growth was assessed using the five-step DuPont model. The application of this methodology supports improvements in cost-efficiency, asset optimisation, and the mitigation of financial risks. In addition to the financial analysis, the sustainability reports of large companies subject to the reporting requirements of the Hungarian Accounting Act were also examined using qualitative content analysis. The analysis reveals correlations between indicators of economic and environmental sustainability. The findings of the research contribute to the development of sustainable agricultural policy, support the design of targeted subsidy schemes, and promote the effective implementation of sustainability reporting practices. Although the present study is limited to agricultural enterprises applying double-entry bookkeeping and, for sustainability reporting purposes, includes only the TOP 500 companies, it provides a foundation for a broader sustainability analysis of agricultural enterprises in the future.
Open Access: Yes
DOI: 10.3303/CET25121009