Unicaja Banco has published the report ‘Análisis Econónomico-Financiero de la Empresa Andaluza 2021’ (Economic and Financial Analysis of Andalusian Companies 2021), prepared by Analistas Económicos de Andalucía. This report is based on a detailed analysis of the annual accounts presented by over 800,000 companies at the trade registers of Spain, of which 108,000 are located in Andalusia.
The data analyzed by Analistas Económicos de Andalucía, Grupo Unicaja Banco’s research company, correspond to the financial year 2019 –latest year with information available for all the companies which compose the sample-. This edition includes an advance of the results of Andalusian companies in 2020.
The preparation and publication of this report falls within Unicaja Banco’s policy to support the business sector and to foster entrepreneurship. Together with the publication of the report, the website cba.analistaseconomicos.com has been updated for consultation of the mentioned work and it contains the economic and financial information on which the analysis is based.
The report shows the main features of the business fabric in Spain and its Autonomous Communities, with focus on Andalusia and its provinces, and it has the following structure: after a first introductory section and the synthesis of the main results, a review is made of the demographic evolution of the productive fabric from different approaches, such as sector, legal nature or size.
In a second section, the report analyses the companies which, because of their economic and financial behavior, are regarded as ‘Business References’, under three criteria: capacity to generate resources (leaders), capacity to increase sales (gazelles) and capacity to obtain a high profitability (high profitability).
Then, the third section pays attention to the economic and financial evolution of during the period 2017-2019, although the core of the examined information is the last year. The analysis in supplemented with an advance of the financial year 2020.
Finally, the ‘Economic and Financial Reports’ of the main aggregates and a ‘Dictionary of economic and financial terms’ are included as annexes, to make it easier to understand and construe the document.
The main results of the report regarding Andalusian companies are explained below:
Business demographic dynamics
At the beginning of 2020, 531,045 business developed their activities in Andalusia, 12,513 more than in 2019 (2,4% year-on-year). This figure represents 15.6% of the total national.
Regarding business density, in Andalusia there are 62.7 companies per thousand inhabitants, 1.2 more firms than in the previous year, (5.6 more since 2015).
With regard to size, businesses without employees represent 54.6% of the total; companies with 1 to 9 employees, 41.3%; those with 10 to 99 employees, 3.8%, and those with more than 100, 0.26%. Since 2015, the number of businesses has grown in all segments, especially those with more than 100 employees (34.6%) and those with 10 to 99 employees (27.4%).
Considering the activity sector, non-commercial services gather 58.6% of the total of companies; commercial services, 25.1%; construction, 10.9%, and industry, 5.3%. In comparison with 2015, companies from the services sector grew by 16.6%, construction companies by 12.1%, industrial companies, by 5.8%, and those from the commerce sector fell by 0.8%.
From a territorial perspective, Malaga has 131,395 companies (24.7% of the total of the region); Seville, 121,928 (23.0%); Cadiz, 63,374 (11.9%); Granada, 61,384 (11.6%); Cordoba, 48,326 (9.1%); Almeria, 44,092 (8.3%); Jaen, 34,791 (6.6%) and Huelva, 25,755 (4.8%). Only Malaga province, with a business density of 77.9 companies per thousand inhabitants, surpasses the national average (71.7).
On the other hand, 2020 saw the creation of 13,654 mercantile companies in Andalusia. This figure represents 17.2% of the total national. In contrast, the number of dissolved companies reached 3,038 (15.0% of the total national), of which 11.0% were due to merger transactions.
With the data for the period 2016-2019, 8,427 companies in Andalusia meet at least one of the three excellence criteria considered: 3,048 businesses are regarded as Leaders (2.8% of the available sample), 2,897 as Gazelles (4.0%) and 2,482 as High Profitability (3.0%).
From a sectoral perspective, the greater weight of non-commercial services companies (48.7%) stands out, ahead of those in the commerce sector (19.5%), industry (14.1%), construction (13.4%) and agriculture (4.4%). Companies of services other than commerce represent 45.5% of Leaders, and industry companies, 21.8%. In Gazelles, services (40.4%), construction (22.2%) and commerce (22.0%) are the sectors with a higher number of companies. In High Profitability, companies of services other than commerce account for 62.2% of the group.
From a territorial point of view, Seville (28.1%) and Malaga (26.1%) provinces gather the largest concentration of business references in Andalusia. The largest presence of Leaders (29.4%) and Gazelles (28.1%) is found in Sevilla, whereas most High Profitability (31.2%) companies are located in Malaga.
The weight of services stands out in Malaga (59.5% of the provincial total) and Granada (52.6%) references; that of commerce, in Almeria (25.4%); construction, in Malaga, Huelva and Jaen (over 14% in all cases); industry, in Jaen (32.2%) and Cordoba (24.9%), and agriculture stands out in Huelva (20.1%).
Economic and Financial Analysis 2019 and advance for 2020
In 2019, the sales of Andalusian companies increased by 5.4%, exceeding the national average (3.5%). From the point of view of sectors, the largest increase has been registered in construction (16.1%), followed by services other than commerce (8.1%) and commerce (6.0%). By provinces, the growth of companies in Malaga (9.2%), Jaen (6.8%) and Almeria (5.9%) stands over the regional average.
The year result in Andalusia represents 4.2% of sales, a 0.5 p.p. year-on-year increase (8.0% in Spain), with services other than commerce standing as the sector with the largest weight in this variable (10.2%). Additionally, 66.2% of Andalusian companies obtained positive results, a percentage similar to that of Spain (66.4%), a 1.0 p.p. increase year-on-year (1.3 p.p. in Spain).
On the other hand, investment has increased by 5.9% in 2019 (3.4% in Spain), on the grounds of a higher growth of current assets (8.2%) than non-current assets (4.2%). Commerce has been sector with the highest growth in total investment (24.5%).
With regard to funding, own funds increased by 14.4%, whereas in borrowed capital, the growth of short-term liabilities has been of 2.2%, accompanied by a 5.4% decrease in non-current liabilities. As per their origin, liabilities with credit institutions represent grew in the short term (0.7%) and fell in the long term (-2.3%), whereas regular debt with group companies and commercial creditors increased (5.8% and 3.0% respectively).
Regarding the performance of the business activity, an improvement has been noticed both in economic (4.1%) and financial (6.5%) profitability in 2019 (0.1 and 0.2 p.p. year-on-year, respectively). By sectors, the economic profitability is higher in industry (5.4%). In a provincial breakdown, the highest investment profits were achieved in companies in Huelva (5.6%) and Jaen (5.6%).
In 2020, sales of Andalusian companies dropped by 5.4%, more moderately than the estimations for Spain (-11.3%), with different intensity by sectors, ranging from 12.7% in services other than commerce to 2.5% in commerce.
With regard to the profit and loss account, the operating result recorded a fall of 9.2% (-38.6% in Spain), with a greater impact on companies with a turnover of less than 10 million euros (-30.1%).
On the other hand, investment increased by 2.2% (0.9% in Spain), with the growth for commercial companies standing out (6.4%). In terms of funding, there was growth in equity (2.1%) and non-current liabilities (7.9%), while current liabilities fell by 3.6%.
From the point of view of profitability, Andalusian companies achieved an economic profitability of 4.2%, higher than that of the national aggregate (3.1%).