Companies support accuracy with huge profit margins (tables)

At a time when the debate about the legal and illegal profitability – ethical – business forever erupted due to Accuracy And the cost increase in every area of ​​life numbers its annual report ICAP CRIF (“Leading Industries in Greece”, 2023 Edition) highlights Profit margin in which each branch of business is active and therefore in the field of flexibility that they and they have Business To support their customers and the economy itself.

In fact, the past two years with the “rush” it The recovery of the Greek economy With strong growth rates that helped companies expand their profitability significantly. So in 2022, the “year of the inflationary wave”, there may be a decrease in profit margins in some industries, however, according to market players, on the one hand, this did not lead to significant losses, on the other hand Already recovering this year!

Something that is also “identified” in the annual ICAP CRIF edition “Leading Industries in Greece, 2023 Edition”Which is based on preparing all the budgets published by companies for the year 2021, making sure to highlight the trends that prevailed in the “year of inflation” last year.

The first finding of the research is that The Greek corporate sector showed a significant increase in turnover during this period, which continued into 2022 with a barrage of revaluations, and an impressive expansion in profitability. Specifically, in a sample of 20,931 companies from the non-financial sector, it was noted that total turnover increased by 26.2% in 2021, reaching €183 billion, with all nine branches moving upwards. Along with the increase in total sales, total profits also increased at about the same rate (26.1%). Net profit rose sharply to 11.8 billion euros.

In fact, according to the research prepared by Mrs Stamatina PantelioDirector of Economic Research and Sectoral Studies, and Ms. Eleni Demirzi, Senior Director in the same department at ICAP CRIF, 76.1% of 20,931 companies were profitable.

in absolute sizes The largest profits achieved by the manufacturing sector (3.71 billion euros) And he follows him Trade sectors (2.97 billion euros) Based on Other services 2.16 billion euros.

“Estimations for the trajectory of the domestic economy are also positive for 2023 as an additional increase in GDP of 2.5% is expected, although at a lower rate than in 2022, but slightly higher compared to initial forecasts. Besides, it is slowing down Inflationary pressures gradually due to lower energy prices, while improving the general climate”, says ICAP CRIF President and CEO, Mr. Nikitas Constantilos. “With respect to the 51 industries selected in this year’s edition, it was found that companies were able to manage their costs resulting in higher net profit margins and improved equity and equity ratios used in 2021 compared to last year,” the private notes.

“King” real estate

Undoubtedly, based on this year’s survey, The “king” in profit margins is real estate! An industry that relies a bit on service but also has a “product” that has been “inflating” at a rapid rate in recent years due to high demand. In fact, this particular segment ranks first in all profitability indicators because it shows the largest gross profit margin (67.9%), the largest EBITDA margin (93.4%) and correspondingly the largest net profit margin in terms of revenue (71, 9%)! Something that also underscores the importance of creating new companies that work in some way in the field of real estate.

Excluding EBITDA, mobile phone services (41.1%), private health services (+18.8%), medical technology products (18.1%), and private primary and secondary education (17.8%).

However, in terms of net profitability, there are some differences. Thus, the sectors that seem to have the largest margin of net profit on sales, after real estate, are electrical equipment for establishments (22%), medical technology products (14.3%), generic drugs produced in our country (13.2%). and business consultants (13.1%).

services

In general, the ICAP CRIF survey confirms that the highest profit margins are indeed found in industries that depend largely, if not entirely, on services.

More typical examples outside of business advisors and audit firms with solid double-digit percentages in net profit margin over turnover, Private health serviceswith an EBITDA margin of 18.8% but also Private primary and secondary education services increased by 17.8%! Of course, a large part of the real estate industry, which shows by far the largest profit margins, is based on service.

Large profit margins are also shown by companies with medical technology products, which further confirms the idea that everything related to health also has a good profit.

pharmaceutical

Something that can also be seen in the state of the country’s pharmaceutical industries, although the profit margin percentages are somewhat smaller. According to the treatment conducted by ICAP CRIF, pharmaceutical companies with production activity in the country (non-importing) operated in 2021 with an EBITDA margin of 13.5% and a net profit margin of 10.3%. In general, in spite of the admittedly heavy taxation, especially through refund and deduction, Approximately one in ten euros earned by the pharmaceutical industry in a country is net profit… Yes , Production of generic drugs It performs more, because in this particular case the EBITDA margin reaches 17.6% and the net profit reaches 13.2%!

smoking

Margins are larger for companies that produce tobacco products, which have expanded steadily in recent years with penetration new alternative products. Specifically, tobacco companies, based on 2021 budgets, showed an operating profit margin of 24.15% and a net profit of 25.69%, according to the research.

Food and supermarkets

In the case of the food and beverage industries and companies, which have become the center of public attention due to the barrage of revaluations, the profit margins are relatively small compared to other areas of business, yet they show impressive stability apparently because they are part of the ‘inelastic spending’ of the household regardless. about the economic situation. Somehow the gross margin for 2021 was 24.28%, the operating profit margin increased slightly to 5.42% and the net profit to 5%. The supermarkets are moving at about the same levels, although the net profit margin appears to be smaller, at 2.2%. Which roughly explains direct transfer of the increased costs they faced last year to consumers, But also the effort to get that little extra for the day when costs have leveled off and come down! Among the food products with the highest profit margins, according to the research, are table olives (12% EBITDA margin) and standard biscuits (10.7% EBITDA margin). On the other hand, we find that the margin of pasta is 7.5%, cheeses are 8%, and deli meats are 8.1%. Producers of private label products also have tighter margins (6.3% EBITDA margin and 2.2% net profit).

coffee chains

Coffee chains are still showing large profit margins, which explains the tendency to continue opening such stores. According to the research, Chains that also process coffee and not just import operate with an EBITDA margin of 13.1% and a net profit margin of 10.6%. Again, chains that import coffee and do not process it are 12.1% and 9.3%, respectively.

Sporting goods stores

Among the notable results of this year’s edition are the offerings for sporting goods stores, which seem to be operating at great profit margins. Specifically, the EBITDA margin is 12.2%, which is the same as the coffee chains profit margin (!) but with a lower net profit margin (7.5%).

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