Business analysts at industry research company IBISWorld have revealed Australia’s Top 1000 companies for 2020. The list provides a thorough overview of Australia’s corporate landscape, highlighting the largest firms, growing and declining sectors, and new businesses to watch in 2020-21 and beyond.
The firms on IBISWorld’s 2020 Top 1000 list account for $2.27 trillion in revenue. Over 60% of companies on the list reported revenue growth for the year. However, total revenue across the 2020 list has fallen by around 3% compared with the prior year. In comparison, revenue grew by approximately 6% between 2018 and 2019.
Top 10 companies in 2020
Many businesses had a challenging 2020. This has been demonstrated in the Top 10, where six out of the top ten companies reported a revenue decline. Revenue fell significantly for all three banks in the group, with revenue for ANZ, Westpac and the Commonwealth Bank falling by 21.0%, 17.3% and 11.1%, respectively. These declines mainly occurred due to customer deferred loan payments, low interest rates and volatile capital markets. Compared with 2018-19, Commonwealth Bank fell from 4th to 5th position, overtaken by Coles, which had a revenue decline of only 1.1%.
Revenue for NSW Health increased by 13.4% due to numerous commonwealth and state grants provided during the COVID-19 pandemic. Furthermore, Wesfarmers reported a revenue rise of 11.9% in 2019-20, due to strong sales growth from its operations, which remained active throughout lockdown periods. Officeworks, Bunnings, and Kmart all played a vital role in contributing to the company’s positive results.
Five newcomers
Approximately 40% of newcomers in the 2020 Top 1000 list operate in building construction; consumer goods retailing; professional, scientific and technical services; metal ore mining; and food product manufacturing.
In this years’ list, Aspen Medical is the new entrant that has demonstrated the highest revenue growth rate. This performance is largely due to the company setting up a new personal protective equipment manufacturing facility with the Beckler Group to manufacture clinical-grade face masks during the COVID-19 pandemic.
Sealink Travel Group has entered the list in 2019-20 after acquiring Transit Systems Group. The company has subsequently transitioned from primarily providing ferry services to also providing public bus transport services.
Ixom and Device Technologies have also achieved substantial growth since the previous year. Ixom acquired the Medora water treatment business in North America, and Device Technologies has expanded its business to Singapore and other South-East Asian countries.
Afterpay Touch has asserted its dominance in the market by focusing on ecommerce services, and benefiting from rising demand from customers and merchants across markets in Australia, New Zealand, the United States and the United Kingdom.
Strong performers
Metal ore mining
Revenue for the Gold Ore Mining industry rose by 20.5% in 2019-20, following 11.2% revenue growth in the prior year. This revenue increase has occurred due to higher gold prices and increased production.
In 2019-20, revenue for Silver Lake Resources rose by a strong 86.6%. Northern Star Resources achieved record profits for the year, with revenue growth of 40.6%. Both companies credited their growth to higher gold prices and greater production yields.
Saracen Mineral Holdings recorded an outstanding revenue increase of 93.1% in 2019-20. The company has maintained an eight-year streak of outperforming their annual production guidance. Saracen acquired the Kalgoorlie Super Pit mining site, which greatly assisted production. The company has continued to grow through its Carosue Dam and Thunderbox mining sites.
Alongside growth for gold mining firms, revenue for the Iron Ore Mining industry grew by 28.5% in 2019-20, following a growth of 12.7% in 2018-19. Mount Gibson Iron recorded a 59.9% increase in revenue for 2019-20. This financial year was the first complete year of high-grade ore production from the company’s restarted Koolan mine. Increased production and higher iron ore prices have led to higher revenue for the company.
Professional services and consulting
Revenue for the Professional Services industry fell by an estimated 10.0% in 2019-20. However, revenue for ASG Group increased by a substantial 267.9%. This strong growth was mainly due to the company acquiring 1ICT Pty Ltd in November 2019 and Group 10 Consulting Pty Ltd in March 2020.
Amazon Web Services Australia’s revenue increased by 35.2% in 2019-20. The company signed off on a deal with Ingram Micro, where Ingram Micro will distribute Amazon Web Services solutions in Europe, the Middle East, Africa, Latin America and South-East Asia.
Revenue for the Engineering Consulting industry increased by 1.1% in 2019-20. Despite the industry’s modest performance, Worley Limited achieved an 88.7% increase in revenue due to several acquisitions. The company gained ownership of 3sun Group Ltd, a UK-based inspection and maintenance specialist in the offshore wind sector in October 2019. Worley also acquired ECR from Jacobs Engineering Group in 2019.
Weak performers
Superannuation
The Superannuation Funds industry demonstrated one of the weakest performances in 2019-20, with the industry facing losses of up to $99.6 billion. The COVID-19 pandemic’s influence on the share market resulted in investors facing significant losses, with superannuation funds bearing the brunt of these losses due to their heavy exposure through shares. The industry is expected to continue declining in 2020-21, but begin to recover from 2021-22.
UniSuper was hit hardest out of all superannuation funds in the Top 1000 list, with a 68.8% revenue decrease. UniSuper’s exposure to investments in property significantly contributed to the company’s large revenue decline.
AustralianSuper recorded a 67.6% revenue decrease in 2019-20, representing the second-worst performance among Australia’s superannuation funds. The fund reported that over 360,000 members applied for and received temporary early release payments during the COVID-19 pandemic.
Coal mining
The Coal Mining industry has been heavily affected by the COVID-19 pandemic, and deteriorating economic and political relations with China, which represents a key export market for Australian coal. A slowdown in steel production during the pandemic caused demand for coking coal to fall, and trends favouring greener energy have resulted in decreasing demand for thermal coal globally. Revenue for Peabody Australia declined by 35.9% for the year, partly due to a fire that occurred at the company’s North Goonyella mine. The mine’s subsequent reventilation then halted production.
Whitehaven Coal recorded a 30.8% revenue decline, as falling coking and thermal coal prices were exacerbated by production shutdowns during the COVID-19 pandemic. The ban on Australian coal imports into China has also affected the company's ability to sell its coal outside of Australia.
Effects of the COVID-19 pandemic
Revenue for the Consumer Goods Retailing industry fell by an estimated 15.8% in 2019-20. Department store operators faced pressure during the COVID-19 pandemic due to decreased shopping activity and lower household discretionary income. Upmarket department stores such as Myer and David Jones reported revenue declines of 13.8% and 8.0%, respectively, for the year. Clothing retailers also had to close their operations during COVID-19 lockdown restrictions in March 2020, and subsequently in August 2020 for stores located in Victoria. Lockdown restrictions limited retailers to only making sales through online channels and therefore significantly decreased sale volumes. Despite the impact of the COVID-19 pandemic, major players in the Furniture Retailing industry such as Harvey Norman and IKEA performed well in 2019-20 due to their strong online presence.
The COVID-19 outbreak and subsequent recessionary conditions are expected to have a significant adverse effect on building construction firms. Logistics disruptions for construction equipment, building materials, parts and skilled labour resulted in building projects being delayed, revenue slowing and input costs increasing. Revenue from property development sales and construction contracts fell for Lendlease Group, CIMIC Group, Watpac and Frasers Property during 2019-20. Economic uncertainty and job insecurity are also anticipated to discourage investment in building projects and therefore demand for housing. Revenue for building construction firms is therefore anticipated to continue declining in 2020-21.
To download a PDF of this release, click here.
IBISWorld reports used to develop this release:
- Gold Ore Mining in Australia
- Iron Ore Mining in Australia
- Professional Services in Australia
- Engineering Consulting in Australia
- Superannuation Funds in Australia
- Coal Mining in Australia
- Consumer Goods Retailing in Australia
- Furniture Retailing in Australia
To obtain the full Top 1000 companies list, access industry reports, or arrange an interview with an analyst, please contact:
Jason Aravanis
Strategic Media Advisor – IBISWorld Pty Ltd
Tel: 03 9906 3647
Email: mediarelations@ibisworld.com
