One in four Spanish listed companies generate 75% of sales abroad

Foreign investors have confidence in Spanish stocksForeign investors have confidence in Spanish stocks

Sales generated by companies listed on the Spanish stock exchange totalled €264 billion in the first half of 2012, up 9.20% on the same period in 2011. According to a report from the research department of BME–Bolsas y Mercados, the capital markets operator in Spain–, trade realised abroad increased 16% to €157.37 billion, representing almost 60% of total sales.

The study revealed that most listed companies in Spain originate part of their revenues abroad. In many cases the proportion is significant, as in almost half of the companies foreign sales exceed domestic sales and in one out of four companies sales abroad account for 75% of the total figure.

“Spanish listed companies are reaping the fruits of the efforts they made in previous years to expand their businesses internationally,” said Domingo Garcia Coto, director of research at BME. “This is proved by their sales figures outside Spain, which are gaining relevance and, to a large extent, compensate the dull performance of domestic sales, affected by the current Spanish economic downturn.”

In comparison with previous years, there has been a change in the pattern of growth generated abroad, which has been supported by operations in non-EU countries. This would be a direct consequence of weak demand from most European economies.

In fact, Spain’s listed companies obtained in the first quarter of this year 32% of their external profits from the European Union, whereas the percentage had been 34 from January to March in 2011.

“Sales abroad gain weight because domestic market turnover is either stalled or falling,” BME’s Ana Rivero added. “Spain’s GDP is suffering, and oublic and private consumption shows signs of depression. Our companies’ internationalisation is proving  key to diminish the euro zone’s recession.”

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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