Pestana Group: 18% Net Profit In One Year
In 2023, the Funchal-based Pestana Group achieved - like in 2022 - a net profit exceeding €100 million, marking a remarkable 23% growth compared to the previous year. The group's total revenue across various sectors reached €557 million. That is a net profit of almost 18% in a single year!
Hospitality Sector Drives Growth
The growth in revenues for the Pestana Hotel Group was primarily driven by the hospitality sector, which accounted for 67% of the total revenue. Additionally, the real estate sector, operating under the Pestana Residences brand, also made a significant contribution, representing 16% of the total revenue. Other activities within the group, including golf, Pestana Vacation Club, and Empresa de Cervejas da Madeira, contributed the remaining 17% of the revenue.
Pestana Group Increases Salaries
Pestana Group has decided to improve the compensation packages of its employees. This commitment is evident in the €19 million increase in remuneration and expenses, representing a substantial 20% surge compared to 2022. Notably, this includes an average rise of 12% in base salaries. This increase not only addresses the escalating living expenses faced by many employees but also acknowledges the challenges in recruiting and retaining low-wage workers within the tourism sector. Pestana Group pays a gross minimum salary of approximately 900 euros, plus bonuses like meal allowance. Hardly enough for anyone to live a decent life in Madeira, but likely necessary to keep profits coming.
€85 Million In New Investments
Regarding investment, the group allocated €85 million towards the renovation and acquisition of new tourism developments. Notable renovations include Pestana Vila Lido in Funchal, the construction of Ecoresort Pestana Dunas in Porto Santo, and Pestana CR7 Paris. Furthermore, the group expanded its portfolio with acquisitions such as Pestana Orlando Suites in the United States.
Source: RTP Madeira
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