GEKE: Operating profit against losses and 188% increase in sales in the nine months

The financial figures of GEKE recorded a significant improvement in the nine months of the current year.

In particular, the turnover during the current period increased by 188.61% compared to the corresponding period last year and total sales amounted to 4,081,252 euros. In the corresponding period of 2020, the total sales had amounted to 2,157,389 euros.

The operating results (EBIT) of the company during the current period amounted to profits of 944,467 euros against losses of 1,070,445 euros in the corresponding period of 2020.

The Company’s operating result (EBITDA) “results before taxes, financial, investment results and total depreciation”, was profitable and amounted to 1,693,084 euros, compared to a loss-making result of 441,165 euros in the corresponding period of 2020.

According to the listed company, the success of Greek tourism in 2021, the spectacular rise of all indicators against any forecast, as we now know based on statistical data, is a reality. Greece, as a safe destination in the midst of a global insecurity, has managed to upgrade its position vis-.-Vis competing countries, especially in the Mediterranean region.

Increased by 89.0% was the incoming travel traffic in our country in the period January-September 2021. Also increased was the travel traffic in September, with 3 million travelers, increased by 124.4% compared to the corresponding month of 2020 .

The increase in tourist revenues in September was also vertical, “reaching” 2.175 billion euros, from 867 million euros in the corresponding month last year. Thus, in September, tourism “caught” 75% of revenues in 2019, when tourism revenues had risen to 2.886 billion euros.

At the level of nine months, the performance of tourism also moved upwards, at more than double levels compared to last year. Tourism revenues in the first 9 months of the year moved to levels more than double compared to last year and close to 54% of the pre-pandemic performance. The strong momentum continued in September, according to data released by the Bank of Greece.

More specifically, in September this year, the receipts in the travel balance amounted to 2.175 billion euros from 886 million euros in the corresponding month of 2020 and compared to 2.886 billion euros in September 2019. In total, in the period January-September we had revenues of 8.757 billion compared to just 3.660 billion euros in the same period last year. Before the pandemic, in the 9 months of 2019, that is, the receipts were at 16.107 billion euros.

But despite recent improvements, unequal vaccination rates worldwide and new COVID-19 strains could affect this recovery. The economic pressure caused by the pandemic could also put a strain on travel demand, which has been exacerbated by the recent rise in oil prices and the disruption of supply chains.

The safe resumption of international tourism will continue to depend to a large extent on a coordinated response between countries in terms of travel restrictions, harmonized safety and health protocols and effective communication to restore consumer confidence, especially at a time when cases are increasing in some areas.

The Management of the Company with an extremely high sense of responsibility, towards its customers, employees, suppliers, partners and investors, monitors the developments regarding the coronavirus disease (COVID-19), studying the possible risk factors that will could affect the financial position, activities and results of the Company.

The economic impact of the current crisis on the global economy and overall business activity can not be estimated with reasonable certainty at this stage, due to the rate of spread of the disease outbreak and the high level of uncertainty resulting from the inability to predict it reliably. result.

The President Hotel, having demonstrated high liquidity and efficiency ratios, has a distinct advantage in terms of withstanding the sharp drop in revenue and a possible long-term period of declining demand.

With the expectation that in the year 2022 in Greece the prospects of the economy will improve if the health crisis is addressed and the economic growth will continue, the Management of the Company aims a) at the recovery and strengthening of its turnover as well as at the achievement of increased profitability, the defining new packages of offers, investments in new technologies and facilities achieving the reduction of operating costs and the modernization of the hotel, b) the upgrade of the provided services by applying the Health and Safety protocols creating a safe living and working environment.

Also, the relative instability of the tourist destinations of the wider region works beneficially in favor of the destination Greece as a safe country of the Eurozone. Our hotel having as a comparative advantage the capacity, the location and the competitive prices can achieve the increase of its sizes, at the same time improving its financial performance.