In 2023 the 35 firms that make up the Ibex closed the year with a net financial debt of 192.229 billion euros, up 2% from 2022. The highest debt loads were reported by Iberdrola (47.832 billion), Telefónica (27.349), Cellnex (17.6), Naturgy (12.09), and Endesa (10.4). On the other end of the spectrum, there are companies that not only carry a negative net financial debt, but actually have more cash than red ink. Topping this list is Inditex with 11.4 billion in reserves. It is followed by Logista with 2.5 and ACS with 0.4.
The Galician group not only posted historic results last week, with nearly 36 billion in sales and profits well over 5 billion, but it also increased the cash reserve earmarked for investments of about 2.7 billion planned for 2024. As of January 31 of this year, Inditex reported 11.406 billion in reserves. That is up 13% from the previous year and about 22% above the figure from two years prior. Of the more than 11.4 billion, around 7.0 billion are in cash equivalents (2.3 billion in cash and bank deposits; 4.2 billion in short‑term fixed-income investments; a little over 400 million in fixed‑income funds).
Cash and bank balances include cash on hand and standard checking accounts at financial institutions. Within short‑term fixed-income investments and other high‑quality, highly liquid fixed‑income assets, Inditex holds term deposits and stakes in money market funds with maturities under three months, designed to be easily converted into cash and exposed to minimal value changes, as explained in its latest accounts filing.
Debt
Beyond having the largest cash pile in Ibex history, Inditex also shows the smallest net debt figure among the index companies: just 16 million. Most of that debt is due in less than a year, and much of the obligation is denominated in other currencies, reflecting the group’s international footprint.
Nearly all Ibex constituents have increased debt this year due to fresh acquisitions and expansion plans, which raises financial costs. “After the pauses of 2020 and 2021, activity has normalized. Investments are growing, smaller acquisitions are being pursued, new markets are being explored, and higher interest rates raise financing costs. It makes sense that debt rises,” notes Antonio Castelo, an analyst at iBroker.
“Even though many Ibex companies aim to reduce leverage, the net debt level has climbed in response to rate hikes, acquisitions, and larger capital items. The biggest drivers were major capitalization players such as Iberdrola,” says Joaquín Robles, an analyst at XTB.
Cost Containment
Despite higher debt, the push to fix more debt into fixed-rate terms and ongoing refinancings has kept financing costs in check for many Ibex members. The anticipated easing of rate hikes by the European Central Bank from mid‑2024 is expected to further ease borrowing costs for these groups. Since 2010, when Ibex firms reached a peak debt of 202.692 billion, that figure has drifted down to around 190 billion in recent years, signaling a healthier balance sheet across the board.
“Ibex 35 companies have done their homework in recent years. Some weathered the 2008–2009 crisis poorly, but today their balance sheets look solid. They did not want to relive that turmoil and were prepared for a significant rate shift. Several Ibex members now carry net cash and many show only modest leverage,” says Juan J. Fernández-Figares, an analyst at Link Securities.
Castelo adds that the ratio of net debt to EBITDA remains far lower for Ibex members than it did in 2008. “This means that, despite higher net debt, companies appear far more solid. When compared with other European indices, Ibex members are somewhat more leveraged in absolute terms due to sectors like infrastructure, renewable energy, and construction that rely heavily on debt and generate less cash than technology or luxury firms,” Castelo explains.
García Maceiras Expands Shareholding
The Inditex chief executive Óscar García Maceiras has increased his stake in the company, though his position remains modest. He has raised his ownership, narrowing the gap with another non‑executive director and approaching the level of non‑executive chair Marta Ortega. A year ago, he held about 0.0004% of shares; now it stands at roughly 0.0013%. José Arnau holds about 0.0010% and Marta Ortega around 0.0014%. All three trails Amancio Ortega, who controls 59.2% of the company.
Last year, the 12,400 shares García Maceiras owned were valued at roughly 336,000 euros. With recent price changes and the holding surpassing 40,000 shares, his stake is now valued around 1.8 million euros.
The director’s stake comes from a mix of market purchases since joining the company and equity awards granted as part of the executive incentive plan. A December 2021 purchase of 3,645 shares at 28.12 euros each cost about 102,497 euros. Those shares are now worth about 164,000. About two weeks later, another purchase of 3,950 shares at an average price of 25.3 euros cost 100,000 euros and are now valued around 177,000. A later purchase in April 2022 added 26,361 shares at 30.39 euros for 800,000 euros, now worth ~1.1 million. A final acquisition in December added 2,667 shares at 38.8 euros for 103,000 euros, which would be worth about 120,000 today.
Additional movements in the executive shareholding reflect the mix of market purchases and incentive-based grants that have shaped García Maceiras’s stake in Inditex.