Autogrill: the demerger launches a new course for the Food&Beverage sector
- Consolidated revenues: €3,984.8m vs €4,075.6m in 2012 (down 0.3% at constant rates; down 2.2% at current rates)
- Consolidated Ebitda: €314m vs €327.6m in 2012 (down 1.9% at constant rates; down 4.1% at current rates)
- Net result from ongoing operations (F&B): €8.3m vs €7.4m in 2012 (up 58.7% at constant rates; up 12.1% at current rates)
- Consolidated net result: €87.9m vs €96.8m in 2012 (down 4.4% at constant rates; down 9.2% at current rates)
- Net financial position: €672.7m improving against €933.2m in 2012
Outlook for 2014
In the first 9 weeks of 2014 the Group saw a 3.7% increase in sales compared to the same period the previous year.
Milan , 13 March 2014 - Meeting today, the Board of Directors of Autogrill S.p.A. (Milan: AGL IM) examined and approved the consolidated financial statements and the Company’s draft financial statements for 2013 .
Over the year, passenger traffic in airports grew 3.9% worldwide, mainly due to the increase in flights to and from Asia and the Middle East. European motorway traffic, on the other hand, continued to contract, in general, with signs of stabilization occurring only towards the end of year. In Italy, the Group’s biggest motorway market, traffic dwindled a further 1.7% in 2013, thus reflecting the structural nature of the scaling down in progress.
Consolidated revenues amounted to €3,984.8m, slightly down (0.3%) from €4,075.6m in the previous year. Sales at current exchange rates (down 2.2%) were penalized by the weakness of the dollar against the euro. The increase in revenues in airports (up 1.5% ) and railway stations (up 3.3% ) offset the negative trend in the motorway business, which was down 1.3% .
From a strategic viewpoint, 2013 saw the Group focus on the Food & Beverage sector, as a result of the proportional partial demerger of Autogrill S.p.A. in favour of WDF S.p.A., and launch a significant renewal of the offering whilst continuing to strategically reposition itself in terms of channels and geographical regions for the purpose of launching a new phase of growth and upgrading.
On one hand, the Group started to redefine its commercial offering with the development of new concepts and the stipulation of agreements with the brands most innovative and in line with consumer needs.
On the other hand, it continued to pursue its strategy of developing in countries with high growth rates and channels with higher potential, like airports and railways stations. In the course of the year, fresh impetus was given to the expansion of the Group’s presence in Asia, with start ups in Vietnam and Indonesia, and a strengthening of the Group’s presence in Northern Europe and the Middle East. The strategy on motorways, on the other hand, was and will continue to be more selective, given the limited growth potential of this channel in the developed countries and the high investments needed to penetrate new markets.
“2013 was a year of great transformation for us, starting with the separation of our two businesses, which was completed in just nine months and led to the formation of two distinct entities, both leaders in their respective sectors,” said Autogrill CEO Gianmario Tondato Da Ruos.
Events after 31 December 2013
Expansion proceeded in the first nine weeks of 2014 with the adjudication of important new contracts. In January, the Group announced its entry to Fort Lauderdale International Airport in Florida, where it will provide f&b services through 25 points of sale. In the same month it entered an agreement with a Russian partner, Rosneft, to develop the Acafè proprietary brand under franchising in seven service areas around Sochi. In February, Autogrill extended its concession at Copenhagen Airport and at the beginning of March made its entry to Abu Dhabi International Airport.
Outlook for 2014
Group sales in the first 9 weeks of 2014 were up 3.7% on the same period the previous year .
Business in North America and the Pacific Area grew 4.9%, a particularly good result considering the bad weather conditions on the North American Atlantic seaboard. Revenues in the airport channel rose 6.3% despite the fact that over 50,000 flights were cancelled in January alone against 10,000 cancelled in the same period in 2013. Widespread bad weather had a bigger effect on motorways, where sales were down 0.6%.
Total revenues in Italy were down 1.3%, mainly due to the closing of a number of locations in the previous year. Performance on motorways, on the other hand, was positive (up 0.9%), a trend that the first figures available for the current year show to be continuing.
Revenues in the other European countries were significantly (up 8.5%) due to both new openings in 2013 and a recovery in consumer spending more marked than in Italy.
In 2014 the Group will aim to increase its sales and margins in North America by exploiting the new commercial offerings to increase the capture rate and the efficiency initiatives in progress, first of all in terms of procurement costs. In Italy it will continue to adopt a strategy designed to rationalize its operations and develop new commercial offerings and initiatives to contain running costs.
The Company will provide a more detailed view of its expectations for the current year on presenting its results for 1st quarter 2014.