Strong airport performance drives Autogrill growth in 2018 as the company appoints Paolo Zannoni as new Chairman

INTERNATIONAL. Autogrill has reported a 2.2% year-on-year increase in consolidated revenue in 2018, to €4,695.3 million (at current exchange rates). At constant exchange rates, the increase was 5%.

Like-for-like growth of 3.5% was largely driven by a strong performance from the airports division, while new openings in North America and Asia also contributed to the 2018 performance.

The travel-related food & beverage and retail company has announced the appointment of Paolo Zannoni as Director and Chairman. He replaces Gilberto Benetton, who sadly passed away on 22 October 2018 at the age of 77.

Zannoni previously served as Advisory Director at Goldman Sachs International and as President of the Italian Investment Banking division. He has held several positions at leading international groups and is also a member of the Advisory Board of the International Centre for Finance (ICF) at the Yale School of Management.

Source (all charts): Autogrill. Click on image to enlarge.
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Results by segment and region

The airports channel saw 3.1% revenue growth at current exchange rates (7.2% constant), to €2,742.2 million. Like-for-like revenue growth was +5.6%.

Autogrill noted a net positive contribution of openings and closings, which was mainly driven by the International segment.

In the motorway channel, revenue decreased 2.5% at current exchange rates (1.3% constant). The performance reflects softer traffic growth across all regions, Autogrill said. Like-for-like revenue growth in the channel was 0.1%.

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Revenue in other channels increased 19.3% (20% constant) due to new openings in some outlets in Europe and the acquisition of Le CroBag. Like-for-like revenue growth was 4.3%.

In North America, revenue amounted to US$ 2,822 million, an increase of 4.2% at both constant and current exchange rates. There was solid like-for-like growth (+4.1%). The acquisition of US convenience retail operator Avila, with effect from September 2018, had a positive impact of US$12 million. New openings, including at Fort Lauderdale, Charlotte, Baltimore and Newark airports, offset the planned exit from the shopping centre channel.

North America revenue. Click to enlarge.

In the International division, revenue amounted to €585 million, a rise of 14.1% at current exchange rates (17.8% at constant exchange rates). Like-for-like growth was 6.8%. New openings made a significant contribution, particularly at airports in Norway (Oslo, Stavanger and Bodo), Vietnam (Cam Ranh and Da Nang), and India (New Delhi), Autogrill said. An unfavourable currency effect impacted Turkey, India and Vietnam in particular.

International revenue. Click to enlarge.

Revenue in Europe amounted to €1,722 million, an increase of 2.1% at current exchange rates (2.4% constant). Like-for-like growth was 1.6%. This figure reflects a strong performance at airports (6.4% increase) and in railway stations (5.8% rise). There was a softer motorways performance due to more limited traffic growth, particularly in Italy and France, Autogrill said.

A slightly negative net balance of openings and closings was mainly attributed to the exit in 2017 from some points of sale on the Italian motorway network, after the selective renewals of 2016. The acquisition of Le CroBag, with effect from March 2018, more than offset the disposals of “non-strategic” activities at Marseilles airport and in Polish motorways in the fourth quarter of 2017.

Europe revenue. Click to enlarge.

Autogrill reported that across the group new contract wins and renewals were worth €4.1 billion in 2018. The company now expects FY2018 underlying EBITDA to be between €412 million and €416 million and underlying EPS to be €0.38 to €0.39 (both are within the range communicated in July 2018).

NOTE: The Moodie Davitt Report also publishes The Foodie Report, the world’s only media focused on airport (and other travel-related) food & beverage. The Foodie Report Newsletter is published every two weeks and The Foodie Report Zine every month.

Please send all news of food & beverage outlet openings, together with images, menus, video etc to to ensure unrivalled global exposure.

The company also organises the annual Airport Food & Beverage (FAB) Conference & Awards. Last year’s FAB took place on 20-21 June in Helsinki. FAB 2019 will be held at Dallas Fort Worth International Airport on 26-27 June.

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