Listed companies: resilient Italians, guarantee extra returns for shareholders

In the last 8 years the main ones 80 Italian companies listed have generated a average yield for equal shareholders at 5.9% per yeardemonstrating a particular resilience in periods of economic uncertainty compared to the reference index (FTSE Italia All Share) and confirming revenue growth as the main contributor to the generation of value. This is one of the findings that emerged from the latest research by Simon Kucher.

Listed companies: resilient Italians

Breaking down i main factorsthose who contribute to the generation of this value for shareholders emerge in first place lto revenue growth (+5.3%), followed by dividend yield (+2.2%), from the increase in margin (+0.8%) and, finally, by the expansion of the multiple (-2.5%). In fact, for the top 80 listed Italian companies, turnover growth appears to be the main lever for growth Total Shareholder Return (TSR).

The report

The analysis then focuses on two main sectors: Industrial & Consumer. By observing the main listed industrial companies operating in the sector technology & industrialconstruction and business services, the growth of the revenues as the main contributor to the generation of value for shareholders (+10.1%).
Also for companies Consumer sector, mainly active in the food & beverage, fashion and consumer electronics sectors, revenues are confirmed as the main element that contributes to the TSR (+3.0%).

The relevance of the growth of revenue on TSR it is also confirmed at a European level. In the period 2015-2023, in line with what emerged for Italian companies, revenue growth stands as the main contributor to the return generated by German and French companies, even considering companies that are comparable to each other in terms of sector even if their respective weight is different in different countries. In France there is a greater prevalence of Consumer companies (mainly in the Fashion & Beauty industry) compared to Germany which is more focused on the Industrial sector (with a prevalence of the Chemicals and Automotive industries).

The comparison with Europe

“From our analyses it emerges that several European companies have worked as a priority on turnover growth to generate value for their shareholders, highlighting how important it is not to reduce prices in an undifferentiated way especially in a period of demand through the launch of new products and services or the optimization of pricing leveraging targeted use of customer engagement mechanisms. In addition, the diversification and expansion of the footprint in terms of geography, channel and products, both through organic and inorganic growth, would allow to expand the value propositionincrease turnover and optimize profitability of the business”.