INTERNATIONAL. Autogrill Group has posted a strong increase in Q1 revenues as the effect of acquisitions, plus solid organic growth, kick in.
Q1 revenues rose +21.5% (+28.9% at constant exchange rates) to €1.09 billion compared to Q1 2007. This was mainly due to the effect of the Alpha Group acquisition, said Autogrill. It also achieved organic growth of +8%.
The business in North America grew +11.4% to US$602.9 million (€402.6 million), driven by the airport trade. In Italy, all channels posted positive results, closing the period at €292.1 million, up +6.3%. In the Rest of Europe, there was a +13.7% increase (+13.5% at constant rates) to €149.4 million.
Aldeasa, which was consolidated on a proportional basis (50%), grew +9.2% to €171.2 million, thanks to the development of its international business, and contributed €85.6 million to group revenues. The international business drove growth, while sales in Spain were flat in the quarter.
The results in Spain were due to the impact of the strong Euro on spending by UK passengers, competition from high-speed railways on certain major routes (eg. Madrid-Barcelona) and renovation work in certain airports (above all Terminals 1, 2 and 3 at Madrid) and other points of sale. International business growth was significant, said Autogrill, even without considering recent openings in North America (up +21%), with particularly good results in Chile, Kuwait City and Mexico.
Alpha Group, which wasn’t consolidated in the first quarter of 2007, contributed £122 million (€161.2 million) to consolidated revenues.
Revenues from airports grew +16.2% (+28.2% at constant rates), to €530.6 million, also thanks to new acquisitions. Motorway revenues were €373.7 million, up +3.1% (+5.3% at constant rates). With the consolidation of Alpha Group, in-flight business was added to the group’s traditional operations. In January-March 2008, the in-flight business contributed £71.5 million (€94.5 million) to consolidated revenues.
The retail & duty free sector saw a big impact from acquisitions, and achieved an increase in revenues of +29.5% (+32.8% at constant rates) to €348.6 million, while F&B revenues amounted to €629.8 million, up +3.2% (+11.4% at constant rates).
Consolidated EBITDA amounted to €74.6 million, down -6.7% (up +0.8% at constant rates) against €79.9 million in Q1 2007, mainly due to the effect of converting North American results to Euros. The US dollar depreciation had an impact of €6 million on the group’s results, which was only partly offset by revenues from Alpha Group (consolidated in 2007 as from June).
EBITDA was also affected by strong pressure on the price of food raw materials and rising utilities costs. The operating result, at €21.7 million against €36.4 million in first quarter 2007, was down -40.4% (-34.5% at constant rates) and reflects higher amortization and depreciation charges due to the strong increase in investments made in 2007 and still underway, said Autogrill.
Following the acquisition of the remaining 49.95% of Aldeasa that Autogrill did not already own, the retailer is fully consolidated from 1 April 2008. If the European Commission’s anti-trust authority clears the acquisition of World Duty Free Europe this week, the acquisition of the UK company could be completed by the end of May.
Outlook for 2008
In the first 18 weeks of 2008, the Group saw growth in sales of +19.3% (+27.1% at constant rates). In 2008, the group expects to generate consolidated revenues of around €5.1 billion; with the acquisition of 49.95% of Aldeasa and of 100% of World Duty Free Europe, the group expects to post sales in the order of €5.9 billion in 2008.
[comments]
Your post will appear – once approved – in The Moodie Forum on our home page
MORE STORIES ON AUTOGRILL
Autogrill forecasts EBITDA of €600 million in 2008 following key recent acquisitions – 24/04/08
EU Commission sets deadline for inquiry into Autogrill acquisition of World Duty Free – 14/04/08
EU Commission clears Autogrill purchase of remaining stake in Aldeasa – 08/04/08
