What are the most profitable businesses in the country?

The economic reactivation boosts the sales of the businesses , after the sharp fall they faced due to the pandemic. These are the most profitable sectors in the country.

In the second quarter of 2021, the equity profitability of the top 100 companies on the Lima Stock Exchange (BVL)  increased by 4% due to the recovery of sales due to the economic reactivation, after the strong impact that companies had in 2020.

But within which sectors do the most profitable businesses in Peru operate ?

Most profitable businesses 

Currently the most profitable business is the metallurgy sector , as it has an equity return of 18%.

” Steel has been rising in price and some companies have been stocked with material at previous costs, so the sale at current value generates a higher profit margin,” said Alejandro Gómez Saba, president of the Peruvian Finance Association (Apef), to the newspaper Gestión.

In addition, the dynamism registered in residential construction , public investment and self-construction for home improvement is attended by the metallurgy sector.

In second place is the armored transport business , with a 12% profitability given the need to protect the transfer of large sums of money.

In third place are the breweries , which have a return of 11% on investment. According to the expert, this type of business is organic, resilient and inelastic (changes in price do not have much impact on the quantity demanded) which, added to the fact that there are few players in the market , results in higher margins.

Further down the ranking, in fourth place, are lottery businesses , whose equity profitability is 8%.

Finally, the fifth place is in the retail sector where there are department stores, shopping centers, supermarkets. This item has a 6% profitability, driven by the recovery in consumption.