BME Research Department Report
Listed companies on the Spanish Stock Market have further strengthened their revenue sources and solvency. They have achieved this fundamentally by further diversifying their revenue sources geographically while at the same time reducing their debt, according to a report published today by BME's Research Department based on reported data from the financial statements of all listed companies.
These companies saw a 6.14% year-on-year increase in net sales, driven mainly by external revenue, which rose by 8%, reaching a record high in terms of their weight relative to the total: 67%. Noteworthy also is that revenue in Spain rose by 3%, reflecting the country's improved economic situation signalled by some of the main economic indicators. According to the report, 71% of listed companies witnessed an increase in total revenue in 2017.
Of the €520.7 billion in revenue reported by listed companies, €349.3 billion, 67%, were generated abroad and the remaining €171.4 billion in Spain. “The strong international stance of most listed companies is a distinguishing factor in the growth in size and expansion taking place in these companies due to competition and transparency requirements associated with being listed on a stock market”, explains the report.
The rise in external trade experienced by listed companies in 2017 was led by firms making up the IBEX 35 index, which marked a year-on-year increase in foreign revenue of 8.5%. Companies belonging to the IBEX Medium Cap index obtained the largest aggregate volume of revenue from outside Spain in 2017 (69% of the total), followed by IBEX 35 companies, with 67.6%, and those belonging to the IBEX Small Cap index, with 53.9%.
In parallel with the strong activity figures, listed companies continued to shore up their financial structures by reducing debt across the board. This movement has triggered a significant improvement in solvency, particularly among non-financial entities.
At year-end 2017, total net financial debt of IBEX 35 non-financial companies stood at €180.2 billion, €8,000 million less than in the prior year while total financial debt fell to 33.82% of assets, down by 10 points compared to 2007.
The report (only in Spanish) is available at: