Infobank Hellastat: Greek flour mill sector recorded an increase in sales in 2015

Greek flour mill sector recorded an increase in sales in 2015, helped by increased activity in products for industrial customers, while the consumer product category continued falling for one more year, Infobank Hellastat SA (IBHS) said in a report released on Thursday.

Economic conditions deteriorated abruptly in the second half of 2015 because of the imposition of capital controls in the country with several flour mill industries focusing on activities in the domestic market unable to import soft wheat from abroad. The survey said that flour mills have risen then inventories since then. Production activity is slightly rising in the last three years, with the relative production index up 2.5 pct as companies covered their wheat supplies from the Greek market.

Wheat prices rose to 25 cents per kilo, a trend hitting profit margins, although prices fell in 2016 due to an oversupply of hard wheat.

Maria Metaxogeni, CEO in Infobank Hellastast, said company officials expected a decline in 2016 sales, reflecting a reduction in product prices for the industry and a decline in wheat prices.

The survey analyzed the financial report of 23 enterprises in the sector. Accumulated turnover grew 2.9 pct to 357.77 million euros in 2015, EBITDA fell 8.5 pct to 22.81 million euros and EBITDA margin rose slightly to 6.1 pct.