In many ways, 2020 was an unprecedented year for the world. The coronavirus pandemic changed everything, and companies weren’t immune. The economic crisis generated by COVID-19 caused that, for the first time in history, the accumulated sales of the largest Mexican companies in Mexico fell, their equity was reduced and they recorded losses instead of profits.
In previous years, they circumvented the conditions the country faced and grew above the overall economy. But 2020 was different: both the sales accumulated by the 500 most important companies in Mexico and the country’s Gross Domestic Product (GDP) fell at the same rate: 8.5% in real terms.
And another milestone was created last year: Pemex lost the position of honor, something never seen before in this ranking, prepared by Expansión since 1975. More sales than the state oil company, but the crisis and its operational and financial problems reduced its income 32 % in 2020, giving way to América Móvil, owned by Carlos Slim, as the largest company in the country in terms of sales.
It is not just about Pemex, but about the entire industry. Until just five years ago, the oil and gas sector was the largest by sales. Now it occupies the sixth position. It has been overtaken by financial services, automotive assembly companies, self-service businesses, food and beverages, and telecommunications.
The most important companies in Mexico
This edition of ‘The 500 most important companies in Mexico’ also stands out for being the one in which the most companies registered a drop in their sales: 260 of ‘The 500’ suffered it, compared to 141 in 2019 and 76 in 2018, the year that they have been better off. In this group of companies with a drop in income, those in the entertainment, airlines, hotel and tourism, airport services and oil and gas sectors stand out.
In the same sense, 2020 was the year in which fewer companies managed to increase their double-digit sales: only 118 of the 500 companies in this ranking. Those in the e-commerce, funeral services, electrical equipment and mining sectors stand out. This year’s level is very low compared to the 145 that reached it in 2019 and 248 in 2018.
In short, 2020 hit the most successful Mexican companies like never before, and now they will try to get out of the pothole. Undoubtedly, the economic measures that are implemented by the authorities, particularly those related to the reactivation of investments, will be key to economic recovery. However, a first survey applied to executives of the 500 most important companies in Mexico predicts a less than encouraging outlook: 90.9% think that the measures applied so far have not been enough to reactivate the economy.
The light at the end of the tunnel of the pandemic is beginning to shine, but we will have to wait for the 2022 edition to know if the results of the companies will continue to weigh the ravages of last year.
