After delivering record revenue and profitability in 2025, Hellenic Duty Free Shops (HDFS) is confronting one of the biggest regulatory changes in its history following the expiration, on December 31, 2025, of Greece’s special regime allowing duty-free sales at land border crossings with non-EU countries.
The change affects stores located along Greece’s borders with Albania, North Macedonia and Türkiye, operations that generated EUR 122.3 million in sales last year and represented one of the group’s most profitable business segments.
Record financial performance driven by tourism boom
Despite the looming regulatory headwind, Hellenic Duty Free Shops completed 2025 with its strongest financial performance to date. Consolidated revenue climbed 11.1% to EUR 539 million from EUR 485.2 million in 2024, while external sales, excluding intra-group transactions, reached EUR 525.7 million.
Profitability improved even faster than revenue. Operating profit (EBIT) rose 17.5% to EUR 79 million, profit before tax increased 22.2% to EUR 67.6 million and net profit reached EUR 51.7 million, compared with EUR 42.4 million a year earlier.
Airports remain the group’s growth engine
Airports continued to generate more than 70% of HDFS’ total revenue. Sales from airport stores increased 9.9% to EUR 367.1 million, while total airport revenue, including promotional income, reached EUR 379 million. Gross profit climbed to EUR 200.8 million and operating profit reached EUR 59.4 million.
Passenger traffic across Greek airports rose 4.9% in 2025 to approximately 83.3 million passengers, while international arrivals reached a record 31 million travelers. Athens International Airport recorded passenger growth of 9%, with Thessaloniki Airport following closely at 10%.
Visitors from the United Kingdom remained the largest customer group, followed by travelers from European Union countries like Germany, Italy, France and Poland.
Land borders were the hidden profit champion
Although airports dominate revenue, land border stores proved to be one of the company’s most profitable assets. Sales increased 14.5% to EUR 122.3 million, while revenue reached EUR 123.6 million. Gross profit rose to EUR 68.4 million and operating profit surged to EUR 51.2 million.
With an EBIT margin exceeding 41%, the border business generated extraordinary profitability, explaining why the removal of tax-free sales represents the most significant operational challenge facing HDFS this year.
Ports also benefit from tourism growth
The recovery in passenger traffic extended beyond airports. Sales at port locations increased 17.8% to EUR 24.7 million, generating gross profit of EUR 12.5 million and operating profit of EUR 7.6 million.
Across the group, duty-free retail sales rose 13.3% to EUR 324.1 million, remaining the company’s largest revenue source. Tax-paid retail sales increased 7.6% to EUR 195.7 million, while wholesale revenue remained broadly stable at EUR 6 million.
Higher costs, stronger earnings
Like many retailers, HDFS faced rising operating costs throughout the year. Rental expenses increased to EUR 66.8 million from EUR 56.3 million, staff costs reached EUR 52.4 million and other operating expenses rose to EUR 39.9 million.
Depreciation, however, declined to EUR 48.2 million from EUR 52.5 million, helping support overall profitability. The workforce expanded modestly to 1,260 employees at year-end, including 1,081 permanent staff and 179 seasonal workers.
