The spectacular growth of tourist arrivals in 2014 had a beneficial effect on the results of the Greek travel industry in 2014, as indicated by the analysis of the balance sheets of 1,494 companies from that sector, conducted by ICAP.
More specifically, the balance sheets show:
• The sales of these enterprises increased by 13.2%, while there was a significant restraint in the cost of sales, resulting in an increased gross profit of approximately 30%, resulting in a drastic increase of net profits in 2014.
Return to profitability
• These positive changes contributed decisively to a remarkable return to profitability for the sector. The pre-tax profits achieved a record € 151,6 mil. in 2014, compared to losses of almost € 31 million the year before.
• Finally, EBITDA rose nearly 26% last year and amounted to € 807 m. in 2014.
Generally speaking, the improvement in the country’s macroeconomic indicators was also reflected in business performance. Based on the published balance sheets of 14.223 companies, last year saw not only a halt in the downward spiral, but also a 2,4% rise in sales. The significant increase in EBITDA profits by 19% and the shrinking of the overall losses by 55% definitely point towards a recovery trend. Yet, the majority of sectors again suffered from losses, with Trade and Tourism being the only exception.
Fading signs of recovery
As far as 2015 is concerned, the published semi-annual results of 198 listed companies – with the exception of banks – show an EBITDA growth by 14% despite a turnover decrease by 2.3%. The improvement in profitability was mainly attributed to significant structural changes adopted by some major Greek companies and other special factors such as the reduced energy costs. Unfortunately, these evident signs of recovery began fading after the first half of 2015, since the private sector companies bore the brunt of the imposed capital controls that “drained” market liquidity and the country entered a new period of elections and political instability.
Therefore, the restoration of normal market operating conditions, the consolidation of political stability in order to eliminate uncertainty and the substantial restoration of liquidity in the market through the smooth recapitalization of banks, all remain matters of the utmost urgency.
