The Bank of Spain confirms that in the first half of 2022 “the turnover of companies increased at a very high rate, reflecting both the recovery of activity and the increase in sales prices”. And that this evolution has “translated into improved profitability for companies [la capacidad de convertir los ingresos en beneficios]According to the results of the latest sample of central quarterly balance sheets (which includes 920 companies).
“Despite the marked increase in production costs, the surplus of business [los beneficios] They expanded at a high pace and the levels were already very similar or even somewhat higher than the levels before the COVID-19 crisis,” the Bank of Spain continued in a report published this Thursday.
From January to June 2022, the companies’ net turnover in nominal terms increased by 48.3% year-on-year, compared to a 12.6% increase in the previous year. Also, the gross added value (GVA, which can be translated as profit) in nominal terms increased by 18.8% compared to the previous year, by 10.5%,” the institution said.
This strong profit growth means that companies as a whole have managed to improve their margins or profitability, which is also shown in the Bank of Spain report.
“A breakdown by sector shows that most branches recorded a recovery in profit (GVA) between January and June 2022, highlighted by the industry (48%), the retail and hospitality sector (25.4%) and the aggregate, which includes other activities (24.5%). ), within which the good behavior of transport companies stands out”, he explains.
“On the contrary, the power branch experienced a 9.4% drop in profit (GVA), an evolution that reflects the negative behavior of electricity trading companies, which in many cases could not fully influence their prices.” Increase in import costs,” the institution adds.
These differences mean that overall, the 920 quarterly balance sheet companies studied by the Bank of Spain are already 1.3% ahead of pre-Covid profits across sectors, primarily industry and commerce and hotels, while in the specific energy segment “electricity generators “They do this by improving margins by up to 25 percentage points.
This information highlights the need to agree on wage increases in our country, given the loss of purchasing power of workers and families, while companies improve their margins overall by passing on increases in costs that are not personnel (energy, raw materials). , intermediate goods) at final prices, to the consumer.
That is, companies are bringing in more and getting more without raising wages, which is why unions are calling for wage increases and a broader wage deal that should include “retaining business profits, talking about taxation and protecting the most vulnerable, whether in the energy market, or in the mortgage or food market.” , – CCOO General Secretary Unai Sordo explained on Wednesday.
He and Mariano Hoya, of the UGT, appeared frustrated this Wednesday after meeting with the government and employers that “it was not very clear what the executive meant by the earnings agreement”. Most unions have reiterated the need to negotiate a deal on wage increases, but believe the government is maintaining an “aseptic” stance and employers will not change their waiver of protection clauses without mobilizing workers.
The union’s proposal for wage increases still involves a reference frame for the next three years and safeguards to protect purchasing power during this cycle, but without doing so all at once to avoid a dangerous inflationary spiral.
Source: El Diario