INTERNATIONAL. Autogrill has reported a +10% increase in consolidated revenues in the first half of 2015 – up to €1,967 million from €1,787 million in the same period the previous year. However, this was down -0.3% at constant rates.
The Italian food & drinks retailer posted a net result of €-15.6 million, still an improvement on the -€23.7 million reported in the first half of 2014.
Sales in Autogrill’s airport channel were up +20.5% (+3% at constant rates), reflecting the group’s strategy of expansion. Its performance was driven by an increase in average spend in North America, strong growth at Amsterdam Airport Schiphol, new openings such as the eight points of sale at Antalya Airport in Turkey, and the extension of already existing operations, according to the company.
Indeed, if the effect of the transfer of the last four contracts held by its US retail division to World Duty Free Group are excluded, revenues increased +22.4% (+4.8% at constant rates).
Autogrill’s railway channel saw an increase of +1.8% in sales (+0.2% at constant rates), with new openings in Spain in 2014 and a strong performance from Bistrot Milano Centrale having a positive effect.
Ebitda across the group rose to €124.1 million from €103.5 million the year before, a +19.9% increase, with margins net of re-organisation charges up +6.7% (+6% in first half 2014).
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Autogrill’s consolidated first half 2015 results |
A solid second quarter boosted the results, with consolidated revenues at €1,073 million compared to €974.3 million in the same period in 2014, up +10.2% (-0.5% at constant rates), with a net result of €24.7 million compared to €13.4 million.
Looking at the outlook for the rest of the year, Autogrill said sales were up +1.8% (+12.5% at current exchange rates) in the first 30 weeks of the year compared to the first half of 2014.
The company also confirmed the guidance it issued in May, in which it expects revenues of between €4,300 million and €4,400 million, Ebitda (including corporate costs) of between €370 million and €380 million, and capital expenditure of around €240 million for the full year 2015.
Revenue by geographic region
First half revenues in North America were $1,092 million, up +2.6% on $1,080 million in the year before period. Sales in the North American airport channel were up +2.8% overall (1.6% at current rates). In the US, where sales were up 3.7%, Autogrill said growth in the average spend, due to the introduction of concepts with a richer offering, increased same-store revenues by +3.6%, in line with the trend in traffic (up +3.8% in May). However, the trend in sales in Canada was negative “due to the unfavourable economic climate and excess supply” at Toronto and Montreal airports.
Internationally, where all business is in the airport channel, Autogrill posted first half revenues of €146.7 million, up +16.5% (+20.9% at current rates) on €121.4 million in the same period in 2014. Revenues in Northern Europe were up 8.5% (+9.9% at current rates), with a good performance at Amsterdam Airport Schiphol and openings in Helsinki, London (Heathrow and Stansted airports) and Manchester the driving force.
Strong growth in revenues in the rest of the world, at +38.2% (+53.6% at current rates), was attributed to an expansion of operations in Vietnam and Turkey, where a combined €6.3 million of additional revenues was generated compared to the first half of 2014, and the commencement of operations at Indonesia’s Bali Airport in the second quarter 2014, where first half sales of €6 million (equivalent value) were recorded.
At Autogrill’s home base in Italy, first half revenues were down -7.5%, at €489.4 million compared to €529.2 million, with closures of “certain under-performing points of sale” in airports partly to blame. Airport sales totalled €35.6 million, down -2.6% on the €36.6 million recorded in the year before period. The company said the result reflected closures at Florence and Naples airports, excluding which the growth of sales in the channel was +3.6%.
A positive trend was noted in other European countries, with revenues in the airport channel up +10.6% thanks to good performances at Athens, Brussels and Frankfurt and the opening of new points of sale at Düsseldorf Airport. On a same-store basis, revenues were up +8% (+13.1% at current rates).
