Connect with us

AMERICA

Mexico’s president defends electricity reform favouring state utility

Mexico’s president defends electricity reform favouring state utility


Mexico’s president Andrés Manuel López Obrador has dismissed suggestions that a law overhauling the country’s electricity market to favour a state-owned utility is unconstitutional, hours after it was passed by the Senate.

“There is nothing in it that violates constitutional rights, nothing, nothing, nothing,” López Obrador told his morning news conference on Wednesday.

Legal experts and trade lawyers have said the bill violates the constitution, USMCA and international trade treaties, and opposition politicians have vowed to pursue legal challenges. Investor unease pushed the peso down 1.4 per cent in morning trade.

The law, passed early on Wednesday, rolls back key parts of an energy reform passed in 2013-14 that created the country’s electricity market.

López Obrador, a populist nationalist who believes the state should be in control and that energy is the motor of national development, said the previous reform was an effort to squeeze CFE, the former state monopoly, out of the market.

Nicknamed the “fuel oil law” by critics, the legislation passed Wednesday changes the order in which electricity is dispatched into the national grid, relegating cheap renewables behind all power generated by CFE, including from coal and fuel oil.

Hydropower from CFE will now be at the front of the queue for dispatch into the national grid. López Obrador said he would announce a plan to modernise the company’s hydroelectric plants “to produce clean energy more cheaply”.

CFE’s average generating costs for hydropower in 2020 were 1,400 pesos/MWh ($67) versus 650 pesos for electricity contracts under long-term supply auctions, which López Obrador has now scrapped, according to the Mexican Association of Wind Power.

Washington has already admonished Mexico over abrupt rule changes in the energy sector. López Obrador said the issue did not come up at a virtual summit with US president Joe Biden on Monday.

The peso’s fall to around 20.88 to the dollar in part reflected investors’ higher perceptions of risk in a country where López Obrador has already scrapped prominent infrastructure projects and renegotiated contracts he considers to have allowed private companies to profit at the expense of CFE and Pemex, the state oil company.

Gabriela Siller, head of economic and financial research at Banco Base, said “we do not rule out reaching levels close to 21 to the dollar again”.

Senators from the opposition PRI, PAN and PRD parties, which have teamed up to fight López Obrador in midterm legislative elections on June 6, said they would take action to the Supreme Court.

The legislation is similar to electricity rules favouring CFE that were proposed by the energy ministry last year. Those changes were ruled unconstitutional by the Supreme Court this month.

Ana Laura Magaloni, a lawyer who was among three candidates for a Supreme Court seat submitted by López Obrador in 2019, told the Financial Times it was “very shameless to send a bill [to Congress] that is unconstitutional”.

Analysts expect a flood of injunctions from renewable power companies, many of them from Europe and the US, to stop the law being applied to them.



Source link

Advertisement
Click to comment

AMERICA

Mexicans head for US in hunt for Covid jab

Mexicans head for US in hunt for Covid jab


Dismayed by the slow rollout of Covid-19 shots at home, middle-class Mexicans are increasingly travelling to the US as loose inoculation policies in some states fuel vaccine tourism.

“It’s sort of common knowledge that you can get vaccinated in different places,” said Julia Reyes, a researcher who travelled from Mexico to Dallas this week to get her first jab and asked not to use her real name.

“They don’t ask for anything because the policy is ‘we want everyone here to get vaccinated’.”

Via WhatsApp groups or word of mouth, Mexicans with the ability to travel at the drop of a hat are swapping tips and packing planes, taking advantage of their proximity to a country with a bountiful vaccine supply and where doses in some places — including the border state of Texas — are going unused.

Try Las Vegas, some advise — some hotels throw in a free night to people travelling to get their jabs. Claim to have a health condition like diabetes or hypertension, if anyone asks, others recommend. If vaccines have run out by 5pm, go back the next day at 7am; you can show your Mexican driver’s licence, others counsel.

“I had to become a vaccine detective,” said one university professor, who asked not to be identified. Keen not to jump the queue, she only travelled to the US once vaccinations for her age band had been authorised — information she discovered by checking websites on a daily basis.

“My decision is based on a very clear-headed evaluation of the Mexican vaccine process — for people my age, it could take months — they are not even vaccinating all healthcare workers,” she said.

Mexico has stepped up its vaccine distribution, hitting a record of nearly 554,000 doses on a single day this week, but Marcelo Ebrard, foreign minister, acknowledged reliance on foreign-made shots had caused “delays and difficulties”.

Since becoming the first Latin American country to start vaccinating, on Christmas Eve last year, Mexico has administered more than 13m doses, largely to front-line health workers, over 60s and some teachers. The government insists all over-60s will have had at least one dose by the end of this month, and vaccinations for teachers and over 50s will start soon.

By contrast, the US, which has administered more than 200m shots, is rapidly opening up vaccine eligibility. All states are now vaccinating anyone aged 16 or over or have promised to do so soon. Texas alone has administered more than 15m shots.

In some places supply is outstripping demand, with gaps opening up between the number of vaccines delivered and the number administered, especially in the south.

Data from the US Centers for Disease Control and Prevention shows that several states, especially in the south-east of the country, have more than 30 per cent of their vaccines unused. In Texas, just under a quarter of the distributed vaccines have not yet been used.

Part of the reason appears to be a reluctance to get vaccinated, which is particularly strong among rural Republicans. Polling by the health think-tank the Kaiser Family Foundation (KFF) has found that this group are the most likely to say they will definitely not get a vaccine.

Texas is among the places where Mexicans who fear a long wait back home are taking advantage. There are no residency requirements for vaccinations in the state, along with 20 others, according to KFF.

“The plane here was packed,” said Reyes, who spotted someone she had seen on board at the Walmart where she was vaccinated. Football Club Monterrey, known as the Rayados, a soccer team based in northern Mexico, reportedly travelled en masse to Dallas in recent days to get the jab.

“They [the medical staff] kept thanking us for getting the vaccine,” said the professor, who got her shot at a huge vaccination centre in another US state, Utah.

Alicia, another Mexican who also asked not to give her real name, said she signed up to “tons of accounts” before travelling to Texas. As soon as CVS pharmacy announced vaccinations were open, she jumped.

Julien de Bellaigue, a French restaurant owner in Mexico City, also travelled to Texas this week for his first shot. “In Mexico, if I’d had to wait my turn — I’m 40 — I’d be waiting until spring 2022. In France, I might be eligible in the autumn, but I’m over here. I see a lot of people all day because of my job and every day I go to sleep saying ‘I hope I haven’t caught it’,” he said.

One of his friends has even set up a business, he said, charging $180 to get vaccine appointments for people travelling from Mexico.

The Texas health department said the state’s distribution programme was “intended for people who live in, work in, or spend a significant amount of time in Texas”.

As of last week, 99.4 per cent of people vaccinated in Texas were from the state, officials said, compared with 0.56 per cent from out of state and 0.04 per cent from another country. “The data shows it’s not a major issue,” the department said.

“The need for Mexicans to go to the US is 100 per cent, it’s not for fun,” said Alicia, who has a health condition that makes her a high risk for Covid. Because of that, she could not take viral vector vaccines, and was concerned that the BioNTech/Pfizer jab may not be available.

She is now fully vaccinated with both Pfizer doses. She did have misgivings: “Some people have said we’re abusing the US government and we are, it’s true”.

But Reyes said: “I think it’s an amazing policy — they really do care and want everyone going through their country to be vaccinated, whether illegal immigrants or tourists.”

Mexico’s government has a political imperative to speed up its own vaccine programme: midterm elections are in June, and President Andrés Manuel López Obrador hopes to tighten his grip on Congress and boost the number of states ruled by his party.

According to a recent poll, 67 per cent of those Mexicans who had already been vaccinated, or who had a relative who had, approved of the president, 8 points higher than among the uninoculated.

In a country where an estimated eight out of 10 Covid deaths have been among those with little or no education, vaccine tourism is only worsening the yawning divide between rich and poor.

“Unfortunately, it exacerbates the inequality perpetuated by Covid,” said Jason Marczak director of the Atlantic Council’s Adrienne Arsht Latin America Center. “Elites can buy a plane ticket and get the shot but the people who need it even more — because they can’t stay home and telework — can’t.”

Additional reporting by Justin Jacobs

 





Source link

Continue Reading

AMERICA

Populism’s ride to victory in Peru spells trouble for Latin America

Populism’s ride to victory in Peru spells trouble for Latin America


Populism has taken many forms amid the pandemic: in Peru, it arrived in a small Andean town on the back of a horse.

Pedro Castillo, the far-left activist who won the first round of Sunday’s presidential election, almost did not make it to vote at a school in Tacabamba: alarmed by crowds, his steed reared and bucked repeatedly, threatening to throw him off.

But Castillo clung on as helpers tugged repeatedly on the horse’s bridle and, after the ballots were counted, the scale of Peruvians’ disillusion with their politicians became clear.

Although voting was compulsory, nearly a third abstained; of those who did vote, over 17 per cent returned an invalid paper. “More people cast spoiled or blank ballots than voted for Castillo, who won first place,” said Cynthia Arnson, director of the Wilson Center’s Latin America programme. “That’s a deeply troubling sign.”

Best-known for leading a long teachers’ strike in 2017, Castillo barely figured in opinion polls until the final stages of the campaign. His advocacy of widespread nationalisation and calls to renegotiate state contracts and trade treaties have alarmed many Peruvians but they face an unenviable choice.

His likely opponent in a run-off election in June is Keiko Fujimori, daughter of former strongman president Alberto Fujimori, who is serving a long prison sentence for human rights abuses and corruption. Keiko is herself under investigation for allegedly taking millions of dollars in illegal campaign funding.

Marta Lagos, director of Latinobarómetro, a regional polling organisation based in Chile, said Peru was an “extreme case” of the populism sweeping Latin America.

“You have two candidates reaching the second round who are totally outside the traditional political establishment,” she said. “It is also a magisterial example of a country which has gone from having a party system to having no [viable] parties.”

As Latin America goes through a big election cycle, with seven major nations holding presidential or midterm elections by October this year, voters are venting their fury at a political class that is seen to have failed.

The region is the world’s worst hit by the combined health and economic impact of coronavirus, according to the World Bank. This has exacerbated grave “pre-existing conditions” — glaring inequalities of income and opportunity, uncompetitive economies and inadequate public services.

Underlining the unpredictability of regional politics, Ecuador also voted last Sunday and chose as president Guillermo Lasso, a self-made millionaire and former banker, in a result seen as a repudiation of the leftist populism espoused by the losing candidate. As in Peru, the winning candidate is far short of a congressional majority, heightening the challenges of governing.

After Peru and Ecuador, the next Latin American nation to vote is Chile, where electors will in mid-May choose delegates to a special assembly to draft a new constitution. A few months later, they will pick a new president.

One of the region’s best economic performers, Chile lost its halo when riots erupted in October 2019 over costly public services, inadequate pensions and eroding living standards.

The Pacific nation had stood out for its consensus politics over the past three decades, with power alternating between the centre-left and centre-right. Now one of its most popular politicians is a former television presenter, Pamela Jiles, best known for promoting early withdrawals of pension savings.

Even though economists point out that repeatedly pulling out pension funds early will only make retirement finances worse, some lawmakers from the governing centre-right coalition are backing such moves.

Nicholas Watson, Latin America managing director at the consultancy Teneo, said this illustrated one of the biggest dangers of the region’s current wave of populists: their ability to panic established politicians into adopting ill-considered measures that they would normally have resisted.

“You get this sort of populist creep,” he said. “You don’t need even to be in power. The fact you exist and have traction with the population sways politics towards more radical policy proposals.”



Source link

Continue Reading

AMERICA

Brazil seeks $1bn cash upfront for preservation of Amazon

Brazil seeks bn cash upfront for preservation of Amazon


The Brazilian government has already done enough to preserve the Amazon rainforest to warrant billion-dollar financial aid from western nations, its environment minister has said in comments that are likely to complicate a key climate summit hosted by US president Joe Biden next week.

Brazil has requested $1bn from western nations, which the country’s environment minister Ricardo Salles said would be used to reduce deforestation in the world’s largest rainforest by up to 40 per cent over the next 12 months.

“We already have a lot of results that could justify the receiving of something, if not everything, but something upfront,” Salles told the Financial Times.

The request startled foreign diplomats, who maintain that Brazil must show results in reducing surging levels of deforestation before it receives any financial support. This message was conveyed to the Brazilian government in a meeting last week between several western ambassadors and Carlos França, Brazil’s new foreign minister.

Since the inauguration of Jair Bolsonaro’s administration in 2019, deforestation in the Amazon has risen to its highest level in more than a decade, sparking international concerns about the impact on climate change. Last year more than 11,000 sq km of rainforest was razed, an area seven times the size of London.

US diplomats say the environment is the most pressing aspect of Washington’s bilateral relationship with Brazil. Todd Chapman, the US ambassador to Brasília, this week told local politicians and businesspeople that the summit would be an important moment for relations between the countries.

Brazil’s president Jair Bolsonaro, left, with environment minister Ricardo Salles
Brazil’s president Jair Bolsonaro, left, with environment minister Ricardo Salles © Adriano Machad/Reuters

But Salles maintained that Brazil needed cash now in order to start a “positive cycle”.

“If you don’t have the [resources] to begin operations, then the operations cannot begin. You need to have at least part of [the] necessary funds in order to start a positive cycle of taking care of the region from both [an enforcement] and a socio-economic perspective,” he said.

Of the $1bn which Brazil wants, a third would pay for command and control activities, such as enforcing environmental laws and cracking down on illegal logging and mining, according to Salles. The rest, he said, should be dedicated to economic development and the creation of jobs in the Amazon, which is one of Brazil’s poorest regions and ranks low in global human development indices.

Critics have accused Salles of wanting to tear down the rainforest to make way for commercial activity, but he pointed to Brazil’s historical preservation of the rainforest as grounds to receive cash now.

“There is a lot of things already done. We have preserved 84 per cent of Amazon forest. I don’t see any other relevant country with the same rate of preservation [of their forests],” he said.

The minister is viewed with suspicion by other nations and environmentalists following leaked comments last year in which he said the government should take advantage of the public’s distraction by the coronavirus pandemic to push through laws to deregulate the environment.

Diplomats point out that Brazil received hundred of millions of dollars in environmental support in the past, including through the Amazon Fund, an initiative of the Norwegian and German governments which has been frozen since 2019 due to Brazil’s increasing rates of deforestation.

Envoys from other countries in Brasília said that Brazil’s environmental enforcement agencies had historically been effective at combating deforestation with much smaller budgets. Since the Bolsonaro administration came to power, these agencies’ budgets have been reduced by almost 30 per cent each year.

“So far, little or nothing has been done [on deforestation], and what has been done has been ineffective. The issue is political. It is a political decision,” said André Guimarães, executive director of the Amazon Environmental Research Institute.

“I am sceptical in believing that there will be change through dialogue with the US.”

Additional reporting by Carolina Pulice

Climate Capital

Where climate change meets business, markets and politics. Explore the FT’s coverage here 



Source link

Continue Reading

AMERICA

Latin America needs better leaders after Covid

Latin America needs better leaders after Covid


Latin America is the region worst hit by the combined human and economic devastation of coronavirus, according to the World Bank. Jair Bolsonaro, Brazil’s president, is one of the world’s most prominent pandemic denialists. But while Bolsonaro’s dismal handling of the pandemic explains much of Brazil’s suffering, it does not tell the whole story. Other Latin American nations have fared even worse. 

Peru, Ecuador, Nicaragua, Bolivia and Mexico occupy the top spots in a global table of excess deaths since the start of the pandemic, compiled by the Financial Times. The response of their presidents has not always been ideal, especially in Nicaragua, but the problems go well beyond the leadership.

What the pandemic has exposed in Latin America is a longstanding affliction: a lack of effective state capacity. All too often, when governments pull on the levers that should operate health, law and order or welfare systems, not much happens. 

Peru and Argentina ordered long lockdowns last year and offered generous welfare payments to those unable to work. Enforcement was patchy: economies were crippled but infections soared. Even in Chile, long a regional paragon, the government is battling a second wave of infections despite one of the world’s speediest vaccination programmes; a premature relaxation of restrictions, as well as less effective Chinese vaccines, is blamed.

Better quality and more affordable public services are part of the solution, but there are also questions to answer about the efficiency of state spending. During the “Pink Tide” of socialist governments in the region early this century, social spending increased sharply but without a commensurate increase in the quality of public services. Much of the money generated by the commodities boom was spent on payments which lifted millions out of poverty but proved hard to sustain when debts spiralled and raw materials prices fell.

Too little was invested in infrastructure. Latin America’s average annual spending in this area was just 2.8 per cent of national income from 2008-2017, according to the Inter-American Development Bank, barely half of what east Asia managed. Despite 14 years of Workers Party government this century, nearly half of Brazilians lack proper sewage services. Argentina spends about the same share of national income on education as France, but with very different results.

Amid the devastation wrought on lives and livelihoods by the pandemic, international institutions offer a clear prescription: Latin America must build back better. The region should invest heavily in infrastructure, improve the quality of education and healthcare, pursue tax reforms to reduce inequality and seek greener development.

Much of this advice has been offered for decades. The political class appears not to be listening. In the first stages of a major regional election cycle, populist candidates peddling failed recipes abound; Pedro Castillo, the far-left activist who won the first round of Peru’s presidential election last weekend, wants sweeping nationalisation.

So as a result, Latin America risks relapsing into the familiar political habits which have already cost it dear: rampant populism on the left and the right, tinged with authoritarianism and tainted by corruption.

If the region is not to fall permanently behind the rest of the developing world, it must begin by renewing the political class, bringing forward a new generation of leaders who understand how to build a national consensus around sustainable, inclusive growth in fairer societies powered by globally competitive economies. At present, that seems a distant prospect.



Source link

Continue Reading

AMERICA

FT ranking: The Americas’ fastest-growing companies 2021

FT ranking: The Americas’ fastest-growing companies 2021


The second annual FT Americas ranking offers a snapshot of the relative strength of companies as they entered the Covid pandemic — and points to those likely to have the resilience to emerge from the crisis in good health. 

But divergences between the seven countries represented in the list — in terms of speed of economic recovery, and of vaccination programmes — threatens to drag on businesses’ performance in the coming months. For example, at least a third of people in the US have received one dose of coronavirus vaccine, whereas in Brazil — where the daily death rate topped 4,000 earlier this month — fewer than 10 per cent of people have received a first dose.

The FT list was compiled with Statista, a research company, and ranks entrants from across the Americas by compound annual growth rate (CAGR) in revenue between 2016 and 2019.

In a similar tale to last year’s ranking, the technology sector — once again, led overwhelmingly by US companies — accounts for 28 per cent of the overall list, followed by support services and health, both with 5.8 per cent. 

It is important to note that the ranking is not a reflection of the size of each country’s economy, but the strength of its business ecosystem and, crucially, the willingness of its fastest-growing companies to be candid with financial information. Colombia, for instance, is home to 32 companies in the ranking compared with 30 from Brazil. Overall, though, nearly 17 in every 20 companies on the list hail from the US and Canada.

And it is a US lending platform that heads the list this year, knocking last year’s fastest-growing business — Niantic, maker of the Pokémon Go video game — off the top spot. In second and third place, respectively, are a US cloud-connected analytics company providing real-time data for the trucking and transportation industry, and a Canadian home meal-kit delivery service. The top two companies had a 2016-19 CAGR above 530 per cent. 

The full report, featuring case studies and analysis of this year’s ranking, will be published online here and in print on April 29

Readers can use the toggles at the top of the table’s columns to filter by country, sector or revenue, to analyse the data in more detail. 

Switch from CAGR to total 2019 revenues, for instance, and the likes of Facebook, Tesla, Netflix and Uber rise to the top of the table. These businesses are among a group of 47 of the overall 500 to be listed on an exchange.

As many fast-growing companies tend to be privately held and do not publicly disclose detailed financial data, a ranking such as this can never claim to be complete. But the rigorous screening process (please refer to the methodology below the table), which also requires top executives to sign off on the figures submitted by their companies, means the ranking can offer readers a meaningful insight into the health of these private businesses.

Scroll below the interactive table for the full methodology.

Methodology

The FT Americas’ Fastest Growing Companies 2020 is a list of the 500 companies in the Americas that have the highest growth in publicly disclosed revenues between 2016 and 2019.

The ranking was created through a complex procedure. Although the search was very extensive, the ranking does not claim to be complete, as some companies did not want to make their figures public or did not participate for other reasons.

The project was advertised online and in print, allowing all eligible companies to register via the websites created by Statista and the Financial Times. In addition, through research in company databases and other public sources, Statista identified tens of thousands of companies in the Americas as potential candidates for the FT ranking. These companies were invited to participate in the competition by post, email and telephone.

The application phase ran from October 5 2020 to January 31 2021. The submitted revenue figures had to be certified by the CFO, CEO or a member of the executive committee of the company.

CRITERIA FOR INCLUSION IN THE LIST

To be included in the list of the Americas’ fastest-growing companies, a company had to meet the following criteria:

• Revenue of at least $100,000 generated in 2016 (or currency value equivalent according to the average of the actual fiscal year).

• Revenue of at least $1.5m generated in 2019 (or currency value equivalent according to the average of the actual fiscal year).

• An independent entity (not a subsidiary or branch office of any kind).

• Revenue growth between 2016 and 2019 that was primarily organic (ie “internally” stimulated)

• Headquartered in one of 20 American countries. Companies from these countries were eligible to participate: Argentina, Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, the US, Uruguay, Venezuela.

CALCULATION OF GROWTH RATES

The calculation of company growth rates is based on the revenue figures submitted by the companies in the respective national currency. For better comparability in the ranking, the revenue figures were converted into US dollars. The average exchange rate for the financial year indicated by the company was used for this purpose.

The compound annual growth rate (CAGR) was calculated as follows: 

((revenue2019 / revenue2016)^(1/3)) – 1 = CAGR

The absolute growth between 2016 and 2019 was calculated as follows:

(revenue2019 / revenue2016) – 1 = Growth rate

EVALUATION AND QUALITY ASSURANCE

All information reported by the companies was processed and checked by Statista. Missing data entries (employee numbers, address data, etc) were researched in detail. Companies that did not fulfil the criteria for inclusion in the ranking were deleted.

In addition to the companies that responded to invitations to participate, Statista included some well-known companies noted for their remarkable growth (26 in total). Financial information was collected via desk research using official sources, such as publicly available earnings presentations, investor relations websites, and annual reports.

The minimum CAGR required to be included in the ranking this year was 18.2 per cent.



Source link

Continue Reading

AMERICA

FT ranking: The Americas’ fastest-growing companies 2021

FT ranking: The Americas’ fastest-growing companies 2021


The second annual FT Americas ranking offers a snapshot of the relative strength of companies as they entered the Covid pandemic — and points to those likely to have the resilience to emerge from the crisis in good health. 

But divergences between the seven countries represented in the list — in terms of speed of economic recovery, and of vaccination programmes — threatens to drag on businesses’ performance in the coming months. For example, at least a third of people in the US have received one dose of coronavirus vaccine, whereas in Brazil — where the daily death rate topped 4,000 earlier this month — fewer than 10 per cent of people have received a first dose.

The FT list was compiled with Statista, a research company, and ranks entrants from across the Americas by compound annual growth rate (CAGR) in revenue between 2016 and 2019.

In a similar tale to last year’s ranking, the technology sector — once again, led overwhelmingly by US companies — accounts for 28 per cent of the overall list, followed by support services and health, both with 5.8 per cent. 

It is important to note that the ranking is not a reflection of the size of each country’s economy, but the strength of its business ecosystem and, crucially, the willingness of its fastest-growing companies to be candid with financial information. Colombia, for instance, is home to 32 companies in the ranking compared with 30 from Brazil. Overall, though, nearly 17 in every 20 companies on the list hail from the US and Canada.

And it is a US lending platform that heads the list this year, knocking last year’s fastest-growing business — Niantic, maker of the Pokémon Go video game — off the top spot. In second and third place, respectively, are a US cloud-connected analytics company providing real-time data for the trucking and transportation industry, and a Canadian home meal-kit delivery service. The top two companies had a 2016-19 CAGR above 530 per cent. 

The full report, featuring case studies and analysis of this year’s ranking, will be published online here and in print on April 29

Readers can use the toggles at the top of the table’s columns to filter by country, sector or revenue, to analyse the data in more detail. 

Switch from CAGR to total 2019 revenues, for instance, and the likes of Facebook, Tesla, Netflix and Uber rise to the top of the table. These businesses are among a group of 47 of the overall 500 to be listed on an exchange.

As many fast-growing companies tend to be privately held and do not publicly disclose detailed financial data, a ranking such as this can never claim to be complete. But the rigorous screening process (please refer to the methodology below the table), which also requires top executives to sign off on the figures submitted by their companies, means the ranking can offer readers a meaningful insight into the health of these private businesses.

Scroll below the interactive table for the full methodology.

Methodology

The FT Americas’ Fastest Growing Companies 2020 is a list of the 500 companies in the Americas that have the highest growth in publicly disclosed revenues between 2016 and 2019.

The ranking was created through a complex procedure. Although the search was very extensive, the ranking does not claim to be complete, as some companies did not want to make their figures public or did not participate for other reasons.

The project was advertised online and in print, allowing all eligible companies to register via the websites created by Statista and the Financial Times. In addition, through research in company databases and other public sources, Statista identified tens of thousands of companies in the Americas as potential candidates for the FT ranking. These companies were invited to participate in the competition by post, email and telephone.

The application phase ran from October 5 2020 to January 31 2021. The submitted revenue figures had to be certified by the CFO, CEO or a member of the executive committee of the company.

CRITERIA FOR INCLUSION IN THE LIST

To be included in the list of the Americas’ fastest-growing companies, a company had to meet the following criteria:

• Revenue of at least $100,000 generated in 2016 (or currency value equivalent according to the average of the actual fiscal year).

• Revenue of at least $1.5m generated in 2019 (or currency value equivalent according to the average of the actual fiscal year).

• An independent entity (not a subsidiary or branch office of any kind).

• Revenue growth between 2016 and 2019 that was primarily organic (ie “internally” stimulated)

• Headquartered in one of 20 American countries. Companies from these countries were eligible to participate: Argentina, Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, the US, Uruguay, Venezuela.

CALCULATION OF GROWTH RATES

The calculation of company growth rates is based on the revenue figures submitted by the companies in the respective national currency. For better comparability in the ranking, the revenue figures were converted into US dollars. The average exchange rate for the financial year indicated by the company was used for this purpose.

The compound annual growth rate (CAGR) was calculated as follows: 

((revenue2019 / revenue2016)^(1/3)) – 1 = CAGR

The absolute growth between 2016 and 2019 was calculated as follows:

(revenue2019 / revenue2016) – 1 = Growth rate

EVALUATION AND QUALITY ASSURANCE

All information reported by the companies was processed and checked by Statista. Missing data entries (employee numbers, address data, etc) were researched in detail. Companies that did not fulfil the criteria for inclusion in the ranking were deleted.

In addition to the companies that responded to invitations to participate, Statista included some well-known companies noted for their remarkable growth (26 in total). Financial information was collected via desk research using official sources, such as publicly available earnings presentations, investor relations websites, and annual reports.

The minimum CAGR required to be included in the ranking this year was 18.2 per cent.



Source link

Continue Reading
Advertisement

Recent Posts

Advertisement
Advertisement

Popular

close