2024-08-17 12:53:07
The first picture of the results of the first half of the listed companies is satisfactory, as 20 – including 10 of high capitalization – announced a consolidated net profit after taxes of 3.698 billion euros.
With this data, there is essentially exactly 1.17 billion euros short of breaking last year’s six-monthly performance of 4.86 billion euros that the 144 listed companies showed as a whole. Therefore, the profitability of the listed companies – when the publication of the accounting statements is completed on September 27 – is close enough to break the barrier of 5 billion euros and record a new record since the highs of 2007.
If we subtract from the 3.698 billion euros the profitability of the 5 banks, the net profitability of the commercial and industrial listed companies, as reflected in the “N” table, amounts to 1.353 billion euros and shows an increase of 10.62% compared to the corresponding profitability (1.223 billion euros) in the first half of 2023. For the half-yearly consolidated sales of 2024 of the 20 listed companies (percentage of 14% of all listed companies) – together with the banks – a turnover of 20.777 billion euros appears, while last year in total turnover amounted to 44.56 billion euros.
The course of the economy
The trajectory of Greek GDP, with the country’s economy continuing to outperform within the Eurozone, combined with strong demand in sectors such as tourism, transport, construction and IT, supported the profitability of listed companies in the first six months of year. However, it is worth noting that the increased financial costs played a role in the slowdown of the sizes of some listed companies, especially in companies with increased operating leverage. Industrial companies had remarkable six-month performances, starting with the Titan Group, PPC, OTE, Mermeren and Papoutsanis. Titan Group achieved in the first half of the year a revenue increase of 7.6%, an operating profit increase of 16.7% and a net profit after tax increase of 34%. If profitability continues to rise at these levels, the group is expected to exceed €350 million in the full year.
The group’s expansion strategy in the US continues and is highly successful, with Titan America contributing in the first half to 58% of the group’s revenues and operations. Not by chance, therefore, the company’s management is seeking the listing of its stock in New York, which is expected to happen in 2025. However, Greece also turned its back on the Titan Group’s sales, thanks to the increase in construction activity, but also to the other private construction projects (e.g. Helliniko).
On the other hand, Metlen is trying to “digest” the historically high levels it has found in the last 2-3 years. Growth rates thus moderated after two years of strong growth. However, the group is heading for a new history of net profits, while everything shows that the management’s goal of achieving operating EBITDA profits of 1 billion euros in 2024 is achievable.
OTE showed an increase in its profitability and turnover, while Coca Cola HBC also had an increase in its turnover but a decrease in net profitability.
In the services sector, the Stock Exchange’s parent company, HEXA, is “waking up” after the deep lethargy of successive crises, recording strong double-digit growth rates for the first time. In this direction, the increase in transactions on the Athens Exchange, both in equity and bond securities, contributed. Transactions doubled in relation to the corresponding half of 2023, while there was a more than doubling of funds raised through the A.A., thanks also to AIA, which brought the largest public subscription since 2006.
The banks
This year, the “difference” in the banks is made by Piraeus, which in the first half of the year almost doubled its net profits. At the same time, it managed to increase operating income by 11.8%, above the market average. The bank’s management spoke of a second quarter of 2024, when net profits of 333 million euros were achieved, an amount that constitutes a historical record for Piraeus.
The figures of the National Bank also had a significant double-digit percentage increase, while the highest growth rates of revenue and profits are spun by the “Benjamin” of the market, Optima bank. The bank in the first half of 2024 grew at a rate of 50%. For the whole of 2024 there is a long way to go and it will not be easy to achieve a third consecutive year of record profitability for all listed companies. Last year everything was decided in the last quarter, where the peak of the highest interest income in the banks was recorded, but also the strong trend of tourist inflows with the extension of the tourist season.
For this reason, surpassing last year will be much more difficult, given the high comparison base with which the listed companies will be called upon to compete in the second half of the year. The degree of difficulty has gone up, and so have the ratings. The overall picture for the first half, which is expected to be completed at the end of September, will show whether we are indeed on a path to new highs for profitability, or the time has come for the first major post-pandemic correction.