Strong performance from Travel Retail division drives H1 growth at Autogrill
Source: ©The Moodie Report
By Dermot Davitt
INTERNATIONAL. A strong performance from the Travel Retail division, allied to growth in food beverage in North America, buoyed Autogrill Group’s results in H1 2012.
Consolidated revenues hit €2,763.9 million, up +0.4% on the first half of 2011 (up 4.1% at current exchange rates) while consolidated Ebitda was €217.5 million, down -16.8% (-13.3% at current exchange rates) on last year.
Travel Retail continued to see sustained growth, with revenues up +7.7%, driven by a higher average receipt value and outperforming traffic levels, above all in the UK, Latin America and the Middle East. Travel Retail Ebitda grew by +14.3%, a higher rate than the increase in revenues in the sector.
Food Beverage revenues in North America continued the positive trend seen in the first quarter, in both the airport (+0.9%) and motorway (+11.9%) channels. The airport business result was achieved despite the temporary suspension of business in over 150 points of sale for renovation work following contract renewals in the last two years. Along with persisting inflation of costs, such closures had a negative impact on Ebitda in the period.
Sales on American motorways outperformed growth in traffic as a result of better weather than in 2011 and the reduction in fuel prices in the 2nd quarter. On Italian motorways, however, which account for nearly 80% of the business, the economic crisis and restrictive measures by government and record oil prices caused a significant contraction in mobility compounded by a further reduction in propensity to spend.
The impact of the crisis on business in other European countries was limited by greater diversification across channels other than motorways, the group said.
There was strong growth in cash generation, from €26.6 million to €49.8 million despite the doubling of investments.
“Being an international group enables us to continue growing: excellent results by Travel Retail and solid performance in North America are offsetting the negative situation in Europe, mainly in Italy,” said Autogrill CEO Gianmario Tondato Da Ruos. “In Europe, structural changes must now be made to recover satisfactory levels of productivity.”
Consolidated revenues in the first half 2012 reached €2,763.9 million, up +0.4% (up 4.1% at current exchange rates) on the same period in 2011. Sales in the airport channel followed the positive trend seen in the first months of the year, being up +4.4% to offset the contraction on motorways (down -7%).
Consolidated Ebitda amounted to €217.5 million, down -16.8% (down -13.3% at current exchange rates) on H1 2011, which included €10.4 million of non-recurring income. Net of such income and reorganization costs, Ebitda would have been down -12.2% (down -8.4% at current exchange rates). The Ebitda margin moved from 9.4% to 7.9%.
Autogrill said: “The double-digit growth in Travel Retail margins reflects a favourable mix of products and passenger destinations. Food Beverage margins, on
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