Victoria’s rich list: AFL, Spotlight, Cotton On, IGA among top ranking private companies
A year-long investigation into Victoria’s top 158 private companies has revealed the best and worst performers and those whose revenue continued to climb despite the economic downturn of COVID. SEE THE FULL LIST
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Packaging and recycling giant Visy has weathered the COVID-19 downturn to remain Victoria’s top performing private company.
A report by market research and analysis company IBISWorld has revealed the state’s highest-earning private businesses in the 2019-20 financial year.
Visy took out top spot with revenue totalling $7 billion, a 1.4 per cent increase on the previous year.
The company, founded by ‘cardboard king’ the late Richard Pratt and now under the leadership of his son Anthony, was the second highest earning private business in Australia this year, surrendering top spot to WA’s Hancock Prospecting thanks to a spike in the price of iron ore over the past year.
Trucking magnate Lindsay Fox’s Linfox was Victoria’s second highest earning private business, with $3 billion in revenue, followed by PFD Food Services with $1.94 billion in earnings.
Of the nation’s top 500 private companies, 158 are from Victoria.
IBISWorld senior industry analyst Jason Aravanis said Victorian companies contributed 28.7 per cent of the overall revenue recorded from businesses on the top 500 list.
“In that respect Victoria is really punching above it’s weight when you consider it only has about 25 per cent of the population,” he said.
Mr Aravanis said the impact of the COVID-19 pandemic was starting to show in the results.
“COVID-19 really struck hard in the final quarter of the 2019-20 financial year so we’re only just starting to see those effects,” he said.
“Already you can see BIG4 Holiday Parks’ revenue was down 22 per cent due largely the pandemic because sites were shut in that April-June period.”
Despite the COVID-19 pandemic, several Victorian businesses recorded steady growth in revenue this year, including craft giant Spotlight which saw an almost 20 per cent hike in revenue, bringing its 2020 earnings to $1.65 billion and seeing it jump from 40th nationally to 26th.
Ritchies Supra IGA also enjoyed a boost with earnings at $1.25 billion, an increase of 14.6 on last year.
And Complete Office Supplies saw a 22.8 per cent increase in revenue, with earnings totalling $248 million.
Mr Aravanis said the spike could likely be attributed to people setting up their home offices as the pandemic forced people to work from home.
Online retailer New Aim recorded a whopping 58.8 per cent growth in revenue, which they attributed to a sales boost as more people turned to online shopping during the pandemic.
The AFL was ranked 68th nationally, with $796 million in reported revenue to October last year.
But it wasn’t good news for other companies, including Geelong-based Cotton On Group which slumped from 16th nationally last year to 21st this year thanks to a 10.4 per cent drop in revenue.
Retail chain Forever New, which has its headquarters in Victoria, recorded the second-biggest decline in revenue nationally, down 23.8 per cent.
Mr Aravanis said the company attributed the drop to the global pandemic.
“There’s been such a disruption of the Victorian economy (as a result of the pandemic) that it’ll be interesting to see the results of next year’s list and what the real toll might be,” he said.
The list is based on reported revenues and does not include outgoing costs.
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