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International / Global
Autogrill TR&DF HY1 sales +6.5% to $975m
By Doug Newhouse, 30 July 2010
The Autogrill Group has reported first half consolidated revenues up 5.4% to E.2,800.3m ($3,654.9m) and net cash flow from operations of E. 207.2m ($270.4m) including positive contributions from all of its business segments, including Travel Retail & Duty Free (TR&DF) where revenues rose by 6.5% (or by 5% at comparable rates) to E.747.2m ($975.2m).
Autogrill said that the improvement in the TR&DF division was 'very positive' considering the impact of adverse weather conditions at the beginning of the year and the prolonged strikes impacting on air traffic in both Spain and the UK.
Speaking for the group as a whole, Autogrill Ceo Gianmario Tondato Da Ruos said: "In the first half we maintained our cash-flow generation at consistent levels and recorded good sales growth in all our business segments, despite traffic trends which continue to be fairly volatile. The summer is off to a good start and we expect to see a performance in line with our forecasts."
WDF LED THE WAY AGAIN
Certainly this was the case at its WDF/World Duty Free business in the UK airports where sales grew by 8.3% (+5.4% at comparable rates) against a drop in traffic of 5.9%, which was mainly caused by the volcanic ash emissions which closed European air space. Once again, this UK sales growth was led by a 6.3% increase in WDF's operation at Heathrow Airport.
By contrast, revenues at Aldeasa's Spanish airports rose marginally by 0.6%, while traffic showed an overall marginal recovery of 1.0%), but more positively there were strong performances in the two biggest Spanish airports of Madrid (+5.6%) and Barcelona (+16.5%).
Autogrill said this was due to the business generated in the new Terminal 2 and the increase in passengers travelling to non-EU destinations. Results in Aldeasa's locations in the rest of the world were also positive with a 10.4% sales increase at current exchange rates and a 9.7% rise at comparable rates.
Autogrill said this improved performance was linked to improved traffic levels, while Vancouver Airport benefited from an increase in spend per passenger thanks also to increased flights to the Far East.
SECOND HALF REVENUES GOOD
Revenues in the second quarter for the TR&DF division amounted to E.423.4m ($552.6m), an increase of 7.7% (+6% at comparable rates) and despite the air traffic disruption witnessed in Europe due to ash clouds closing air space.
The company said that flights in UK airports were blocked for six days in April, while many flights were also cancelled in Spain. The business in the UK airports, which was hit hardest by this phenomenon, posted a growth in revenues of 6.1% (+2.9% at comparable rates) against a drop in traffic of 9.2%.
Revenues in the Spanish airports increased (+1.6%), against traffic that dropped 0.6% in the period, as well as in the rest of the world (+18.8%), thanks to an increase in traffic.
In the first half the TR&DF division's Ebitda rose 15.7% to E.76.8m ($100.2m), although this was compared with 2009 which benefited from extraordinary income generated in prior years of E.7.5m ($9.7m). Autogrill said this positive result reflected a significant improvement in the sales mix in European airports which was attributable to increased traffic for non-European.
It also mirrored the synergies generated by the integration process and the containment of operating costs which contributed to an improved Ebitda margin rising from 9.5% to 10.3%.
Ebitda in the second quarter reached E.48.6m ($63.4m), an increase of 26.1% with respect to the E.38.5m ($50.2m) reported in the same period 2009, with an Ebitda margin that rose from 9.8% to 11.5%.
In the 1st half investments in the segment, which amounted to E.9.1m ($11.8m) versus E.13.9m ($18.1m) in the same period in 2009, were mainly made in the new Terminal 3 at Malaga Airport and the upgrading of retail spaces in Jordan's Amman Airport.
SIGNIFICANT DEVELOPMENT
One of the most significant events for Aldeasa which was also reported was the now well documented extension of Aldeasa's contract with Spanish airports authority Aeropuertos Españoles y Navegatión Aérea covering 14 airports to December 31 2012. This extension was awarded just after the first half-year reporting period closed.
Autogrill says that in 2009 [a terrible year for Spain's airports-Ed] approximately E.250m ($326m) in sales was generated from these airports, which include: Alicante, Almería, Barcelona, Bilbao, Girona, Ibiza, Jerez de la Frontiera, Málaga, Menoría, Palma de Mallorca, Reus, Santiago de Compostela, Seville and Valencia.
This contract gain is very significant, since in better days sales were worth considerably more than the aforementioned E.250m ($326m).
Beside a severe drop in UK passengers to Spain, Aldeasa has also had a spend per passenger challenge now that Spanish passengers are its biggest customer segment.
OTHER BUSINESS
The company also reported that motorway traffic, which was penalized by unfavourable weather conditions earlier in the year, stabilized in both of Autogrill's most important business markets for this sector - Italy and the US.
Revenues for the company's overall Food & Beverage business increased by 3.4% to E.1,836m ($2,397m) in the first half, while the Flight segment's revenues rose by 19.7% to E.218m ($285m).
COMMENT: While the results of the TR&DF division are good and improving, it should be remembered that the sales comparisons being made are against a very tough environment in 2009 and nowhere was it tougher than in the Spanish airports.
Unlike the UK where WDF has outperformed the traffic yet again, Aldeasa does not have a Heathrow Airport with tens of millions of passengers and the traditional summer 'migration' of UK passengers to the Costa del Sol in particular has been conspicuously absent for more than a year.
But there are signs that traffic levels at Spanish airports are stabilising. For example, only four airports out of the top 20 registered traffic declines in June, while the 48 that are monitored by Spanish airport authority AENA registered a 3.2% increase to 18,212,266 for the month.
Palma de Mallorca (-2.1%), Girona (-2.6%), Reus (-11.1%) and Murciar-San Javier (-8.3%) were the only airports still in decline, while there were still good increases at Spain's main 1m-pax plus airports of Madrid-Barajas (4.3%), Barcelona (5.1%) and Malaga (2.2%). The key increase here is at Malaga which was previously struggling in 2010.
In terms of the full half year, Spain's 48 airports under the control of AENA returned a 1.0% growth in passengers to 87,349,809 to the end of June, but it will be really interesting to see how traffic performs in the key third quarter - particularly at those airports serving the sun destinations.
The pound/euro exchange rate will also play a role. Some UK holiday firms have confirmed a spate of late bookings to Spain, with British travellers getting better value than they have seen for some time with the pound against the euro.
By Doug Newhouse, 30 July 2010
The Autogrill Group has reported first half consolidated revenues up 5.4% to E.2,800.3m ($3,654.9m) and net cash flow from operations of E. 207.2m ($270.4m) including positive contributions from all of its business segments, including Travel Retail & Duty Free (TR&DF) where revenues rose by 6.5% (or by 5% at comparable rates) to E.747.2m ($975.2m).
Autogrill said that the improvement in the TR&DF division was 'very positive' considering the impact of adverse weather conditions at the beginning of the year and the prolonged strikes impacting on air traffic in both Spain and the UK.
Speaking for the group as a whole, Autogrill Ceo Gianmario Tondato Da Ruos said: "In the first half we maintained our cash-flow generation at consistent levels and recorded good sales growth in all our business segments, despite traffic trends which continue to be fairly volatile. The summer is off to a good start and we expect to see a performance in line with our forecasts."
WDF LED THE WAY AGAIN
Certainly this was the case at its WDF/World Duty Free business in the UK airports where sales grew by 8.3% (+5.4% at comparable rates) against a drop in traffic of 5.9%, which was mainly caused by the volcanic ash emissions which closed European air space. Once again, this UK sales growth was led by a 6.3% increase in WDF's operation at Heathrow Airport.
By contrast, revenues at Aldeasa's Spanish airports rose marginally by 0.6%, while traffic showed an overall marginal recovery of 1.0%), but more positively there were strong performances in the two biggest Spanish airports of Madrid (+5.6%) and Barcelona (+16.5%).
Autogrill said this was due to the business generated in the new Terminal 2 and the increase in passengers travelling to non-EU destinations. Results in Aldeasa's locations in the rest of the world were also positive with a 10.4% sales increase at current exchange rates and a 9.7% rise at comparable rates.
Autogrill said this improved performance was linked to improved traffic levels, while Vancouver Airport benefited from an increase in spend per passenger thanks also to increased flights to the Far East.
SECOND HALF REVENUES GOOD
Revenues in the second quarter for the TR&DF division amounted to E.423.4m ($552.6m), an increase of 7.7% (+6% at comparable rates) and despite the air traffic disruption witnessed in Europe due to ash clouds closing air space.
The company said that flights in UK airports were blocked for six days in April, while many flights were also cancelled in Spain. The business in the UK airports, which was hit hardest by this phenomenon, posted a growth in revenues of 6.1% (+2.9% at comparable rates) against a drop in traffic of 9.2%.
Revenues in the Spanish airports increased (+1.6%), against traffic that dropped 0.6% in the period, as well as in the rest of the world (+18.8%), thanks to an increase in traffic.
In the first half the TR&DF division's Ebitda rose 15.7% to E.76.8m ($100.2m), although this was compared with 2009 which benefited from extraordinary income generated in prior years of E.7.5m ($9.7m). Autogrill said this positive result reflected a significant improvement in the sales mix in European airports which was attributable to increased traffic for non-European.
It also mirrored the synergies generated by the integration process and the containment of operating costs which contributed to an improved Ebitda margin rising from 9.5% to 10.3%.
Ebitda in the second quarter reached E.48.6m ($63.4m), an increase of 26.1% with respect to the E.38.5m ($50.2m) reported in the same period 2009, with an Ebitda margin that rose from 9.8% to 11.5%.
In the 1st half investments in the segment, which amounted to E.9.1m ($11.8m) versus E.13.9m ($18.1m) in the same period in 2009, were mainly made in the new Terminal 3 at Malaga Airport and the upgrading of retail spaces in Jordan's Amman Airport.
SIGNIFICANT DEVELOPMENT
One of the most significant events for Aldeasa which was also reported was the now well documented extension of Aldeasa's contract with Spanish airports authority Aeropuertos Españoles y Navegatión Aérea covering 14 airports to December 31 2012. This extension was awarded just after the first half-year reporting period closed.
Autogrill says that in 2009 [a terrible year for Spain's airports-Ed] approximately E.250m ($326m) in sales was generated from these airports, which include: Alicante, Almería, Barcelona, Bilbao, Girona, Ibiza, Jerez de la Frontiera, Málaga, Menoría, Palma de Mallorca, Reus, Santiago de Compostela, Seville and Valencia.
This contract gain is very significant, since in better days sales were worth considerably more than the aforementioned E.250m ($326m).
Beside a severe drop in UK passengers to Spain, Aldeasa has also had a spend per passenger challenge now that Spanish passengers are its biggest customer segment.
OTHER BUSINESS
The company also reported that motorway traffic, which was penalized by unfavourable weather conditions earlier in the year, stabilized in both of Autogrill's most important business markets for this sector - Italy and the US.
Revenues for the company's overall Food & Beverage business increased by 3.4% to E.1,836m ($2,397m) in the first half, while the Flight segment's revenues rose by 19.7% to E.218m ($285m).
COMMENT: While the results of the TR&DF division are good and improving, it should be remembered that the sales comparisons being made are against a very tough environment in 2009 and nowhere was it tougher than in the Spanish airports.
Unlike the UK where WDF has outperformed the traffic yet again, Aldeasa does not have a Heathrow Airport with tens of millions of passengers and the traditional summer 'migration' of UK passengers to the Costa del Sol in particular has been conspicuously absent for more than a year.
But there are signs that traffic levels at Spanish airports are stabilising. For example, only four airports out of the top 20 registered traffic declines in June, while the 48 that are monitored by Spanish airport authority AENA registered a 3.2% increase to 18,212,266 for the month.
Palma de Mallorca (-2.1%), Girona (-2.6%), Reus (-11.1%) and Murciar-San Javier (-8.3%) were the only airports still in decline, while there were still good increases at Spain's main 1m-pax plus airports of Madrid-Barajas (4.3%), Barcelona (5.1%) and Malaga (2.2%). The key increase here is at Malaga which was previously struggling in 2010.
In terms of the full half year, Spain's 48 airports under the control of AENA returned a 1.0% growth in passengers to 87,349,809 to the end of June, but it will be really interesting to see how traffic performs in the key third quarter - particularly at those airports serving the sun destinations.
The pound/euro exchange rate will also play a role. Some UK holiday firms have confirmed a spate of late bookings to Spain, with British travellers getting better value than they have seen for some time with the pound against the euro.
News related to "Autogrill;WDF;Aldeasa"
• Aelia's sales rose by 7% in HY1 to $392.2m
(3 September 2010)
• WDF creates 'Whisky Fest' (2 September 2010)
• Interest in Colombo Airport duty free grows (1 September 2010)
• Aldeasa opens two new Barcelona shops (20 August 2010)
• Manchester and Gatwick Summer fun with WDF (20 August 2010)
• WDF creates 'Whisky Fest' (2 September 2010)
• Interest in Colombo Airport duty free grows (1 September 2010)
• Aldeasa opens two new Barcelona shops (20 August 2010)
• Manchester and Gatwick Summer fun with WDF (20 August 2010)
OLDER NEWS IN THIS REGION
• JTI's core brands perform solidly well
(29 July 2010)
• Clarins' new Extra-Firming Foundation (29 July 2010)
• Transformulas' unveils new repackaged range (29 July 2010)
• Watching out for the fakes (29 July 2010)
• Brown-Forman revitalises Chambord brand (29 July 2010)
• Constant's timely generosity (29 July 2010)
• Rado adds digital timepiece (29 July 2010)
• LVMH sales up by 16% to $11.8bn in HY1 (28 July 2010)
• July issue of The Business (28 July 2010)
• Harold Gittelmon to run NY Marathon (28 July 2010)
• Clarins' new Extra-Firming Foundation (29 July 2010)
• Transformulas' unveils new repackaged range (29 July 2010)
• Watching out for the fakes (29 July 2010)
• Brown-Forman revitalises Chambord brand (29 July 2010)
• Constant's timely generosity (29 July 2010)
• Rado adds digital timepiece (29 July 2010)
• LVMH sales up by 16% to $11.8bn in HY1 (28 July 2010)
• July issue of The Business (28 July 2010)
• Harold Gittelmon to run NY Marathon (28 July 2010)
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