The Ibex 35 companies registered a record profit in 2021 of 58,000 million euros

MADRID, 26 May. (EUROPA PRESS) -

The Ibex 35 companies generated, in aggregate, a record net profit of 57,797 million euros in 2021, compared to the losses recorded in 2020 of 8,088 million euros, according to an analytical article prepared by the Stock Exchange and Market Research Service Españoles (BME), where the financial results of the Ibex 35 companies in the past year are analyzed.

Compared to 2019, the benefit increased by 83.5%, while it rose by 33.4% compared to the figure registered in 2018. In this way, the article highlights that the recovery of profits among the companies that make up the Ibex 35 has been shown "V-shaped" since pre-Covid levels.

As for income, they rebounded 17.4% in 2021 compared to 2020, reaching 477,778 million euros, although this figure remained 8.3% below that obtained in 2019, while Ebitda increased by 2021 66.1%.

The analysis explains that the main reason why the variations in billing differ from those in the net profits obtained is, in large part, due to the decrease in asset impairment and the correction of provisions that had been allocated as a result of the pandemic. .

In this sense, the impairment and disposals of fixed assets of the Ibex 35 companies were reduced from more than 40,000 million to nearly 18,000 million, 56.1% less.

In the case of the Ibex Medium Cap, the companies of this selective closed the year 2021 with profits of 3,736 million euros, compared to 1,619 and 1,875 million in the two previous years, (130.8% and 99.2%, respectively).

The turnover of this selection of companies grew by 7.9% in the year. The report points out that the great contributors to growth in this selection of companies have been companies related to industry and construction and energy.

In the case of the energy sector, BME highlights the inclusion of Acciona Energía in the index after its IPO in 2021. The company, with a market capitalization of more than 11,500 million euros, obtained a growth of 39.8 % of your annual turnover.

Likewise, the financial and real estate sector is once again the protagonist in the Ibex Medium Cap index, with a significant rebound in turnover this year, although it is still far from the levels reached in 2019. Companies such as Unicaja Banco or Neinor Homes stand out with growth 27.4% and 59.6%, respectively.

The article ensures that the composition of the Ibex 35 would have a "defensive sectoral structure" in the face of the current crisis, marked by high inflation, the war in Ukraine and the rise in real interest rates.

Specifically, it affirms that the results of the listed companies have meant a "balloon of oxygen" for Spain in a situation that "has been progressively worsening" due to the war in Ukraine, the new outbreaks of Covid-19 in China and its negative effects about the economy.

"The temporary confluence of strong inflationary pressures longer than initially expected and the end of the monetary stimulus packages with rate hikes already initiated in the United States, converge with the distorted functioning of the goods and product markets around the world" , includes the analysis carried out by BME's Study Services.

To defend the positive composition of the Ibex 35, the article echoes a study carried out by the British manager Schroders on the sectoral behavior of American shares in the face of an inflationary situation between 1973-2020. Specifically, this study would point out that industries such as energy, the real estate sector, consumer goods or utilities, among others, generate, on average, positive real returns in the face of inflationary situations.

"This type of multinationals are highly represented in the Ibex 35 and, in addition, they maintain very generous dividend policies, which increases their value as suitable investments to protect themselves against inflation," says BME.

For example, it highlights that the oil and energy sector of the Ibex 35 invoiced more in 2021 than in 2019, registering a figure close to 129,000 million euros. The main members of this group are Repsol, Iberdrola, Naturgy and Endesa, among others.

Other sectors that came close in 2021 to the 'V recovery' of their aggregate annual turnover figure were consumer goods and the group of basic materials, industry and construction, which obtained growth close to 26% that allow them to position themselves just 2% below 2019 levels.

Within the consumer goods sector, the BME article highlights Inditex, with a turnover of 27,716 million, 36% more than the previous year. In the basic materials, industry and construction sector, the behavior of the steel companies stands out, with the presence of ArcelorMittal and Acerinox, whose income increases close to 50%.

For its part, pending the normalization of mobility and social and economic, the tourism, leisure and hospitality industry continued in 2021 in the lower part of the cycle. In this sense, the turnover of these companies increased by 12.6% in 2021, but is 64% below the level prior to the coronavirus.

As for the technology and telecommunications sector, this is the only group that sees its revenues decrease in 2021, specifically by 4.2%. However, this decrease was due to the negative contribution of Telefónica, which registered a fall of 8.8% in billing due to the impact of extraordinary elements, although, according to the company, its billing grew by 2.2% in organic terms.

Finally, the article mentions the role of the Spanish financial and real estate sector, which represents 27% of the aggregate income of the national selective, with close to 134,000 million euros in 2021. The sector, with a slight upturn of 5.1% per year , remained below pre-Covid levels, although an increase is expected in the coming quarters given the expected rises in interest rates and the gradual reopening of the economy.

In terms of valuation, at the end of the first quarter of 2022, the Ibex 35 is trading at 9.7 times the price-earnings ratio (PER), taking into account the profits of the year 2021, a rate "significantly" lower than that of its counterparts Europeans.

The dividend yield would also remain high and stand out among the main international indices, with 2.8% at the end of the first quarter of the current year.

As for the return on equity of the Ibex 35 companies, it stood at 25.4% in 2021, showing a notable recovery after presenting negative numbers in 2020, while in the Ibex Medium index, the ROE has almost doubled, going from 11.9% in 2020 to 21.4% in 2021.