Autogrill: 1st half growth in Ebitda accelerates in 2nd quarter
Results in 2nd quarter 2014(1)
Consolidated revenues: €974.3m, up 0.4% on €995.9m in 2nd quarter 2013 (up 3.9% net of the transferred US Retail business)
Consolidated Ebitda: €88.4m, up 12.6% on €81.2m in 2nd quarter 2013 (up 11.7% net of the transferred US Retail business)
Results for 1st half 2014(1)
Consolidated revenues: €1,787.3m, down 0.2% on €1,837.8m in 1st half 2013 (up 3.3% net of the transferred US Retail business)
Consolidated Ebitda: €103.5m, up 4.7% on €102.8m in 1st half 2013 (up 6% net of the transferred US Retail business)
Net result from continuing operations: €-18.4m against €-32.6m in 1st half 2013
Free operating cash flow: €-9.6m, after capital expenditure of 85m€, an improvement on €-95.2m in 1st half 2013
Net financial position: €691.9m at 30 June 2014 against €672.7m at 31 December 2013
Outlook for 2014
Sales over the first 29 weeks of the year were up 3.4% (down 0.3% at current rates) compared to 1st half 2013
The Group confirms the guidance issued in May
Milan , 31 July 2014 - Meeting today, the Board of Directors of Autogrill S.p.A. (Milan: AGL IM) examined and approved the consolidated results to 30 June 2014.
The Group saw improvements in its main markets in the first six months of the year. The securing of important new contracts proved its capacity to pursue a strategy of expansion in airports worldwide and focusing on higher potential locations in the European motorway channel.
Consolidated revenues in 1st half 2014 amounted to €1,787.3m against €1,837.8m in the same period the previous year, the 0.2.% decrease (a 2.7% decrease at current rates) being entirely due to the deconsolidation of the airport retail business in North America (“US Retail Division”) transferred to World Duty Free in 2013. Net of such transfer, revenues were up 3.3% (up 0.8% at current rates).
Consolidated Ebitda rose 4.7% (0.7% at current rates) to €103.5m from €102.8m in 1st half 2013. The ratio to revenues also rose, from 5.6% to 5.8%. Excluding the impact of the transfer of the US Retail Division and re-organization charges in the two periods, the figure was up 6% . Improved performance by HMSHost and in Other European countries more than offset the contraction in Italy.
The improved operating result, together with lower amortization and depreciation (reflecting a lower level of investments in the previous year) and a decrease in financial charges, enabled the Group to reduce the period’s result from continuing operations to a negative €18.4m compared to a negative €32.6m in 1st half 2013.
Lastly, financial management showed improvement, with cash absorption in the 1st half of the year reduced to €9.6m from €95.2m in 1st half 2013, after capital expenditure of 85m€ (100.5m€ in 1st half half 2013).
Business development and new contracts
Regarding expansion in the airport channel, it was announced in January that the Group was to start up at Fort Lauderdale International Airport in Florida and in February that it was consolidating its operations in Copenhagen Airport by extending an existing concession. At the beginning of March the Group made its entry to Abu Dhabi International Airport.
In the motorway channel, the 1st half, Autogrill entered an agreement with Rosneft enabling the Acafè house brand to be operated under franchising in seven service areas around Sochi, thus strengthening its presence on the Russian market.
In the same period, the Company secured 21 f&b sub-concessions on the Autostrade per l’Italia network, a result in line with its strategic objectives.
Regarding the strategy of renewing its commercial offering, the Group is carrying forward a process of innovation that involves the design of new brands in line with consumers’ needs. At Roma Fiumicino Airport, Autogrill opened the first Mercedes-Benz Cafè and The Burger Federation, a new gourmet hamburger brand developed in-house. And in July Autogrill opened the new Bistrot Düsseldorf Airport, a German re-interpretation of the formula developed with the University of Gastronomic Sciences in Pollenzo, which has already proved very successful at Milan’s Stazione Centrale.
Outlook for 2014
Sales over the first 29 weeks of the year were up 3.4% (down 0.3% at current rates) compared to 1st half 2013.
The Group confirms the guidance it issued in May, on the basis of which revenues for full year 2014 are expected to be around €3,860m, with Ebitda at around €310m, a margin on expected revenues of 8% and capital expenditure worth around €210m.
(1): Comments refer to changes at constant rates to give a clearer picture of actual business trends.