Autogrill reports +4.6% revenue growth in the first half of 2016

autogrill_logo_330ITALY. Autogrill has reported consolidated revenue growth of +4.6% in the first half of 2016, to €2,056.6 million. The figure represents a +5.4% increase at constant rates.

The company said the €90 million revenue increase was the result of like-for-like growth of +2.4%, a positive +3% balance of new openings and closures and a -0.6% reduction arising from the disposal of its US retail business and French railway stations business.

Autogrill said improved operating profitability and the capital gain on the disposal of the French railway stations business, which amounted to €14.9 million, led to profits of €16.8 million. This compares to losses of €15.6 million in the first half of 2015.

EBITDA grew +13% (+13.8% at constant rates) net of capital gain on the disposal.

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The company’s net financial position at 30 June 2016 was €639.7 million. It is down €4.7 million from the €644.4 million as of 31 December 2015.

Group sales in the airport channel climbed +7.3% (+8.4% at constant rates), driven by rising revenues in North American airports and by strong growth in subsidiary HMSHost International’s business, which benefitted from new openings in 2015 and 2016.

Motorway channel sales were up +0.6% (+1.1% at constant rates), with faster growth recorded in North America than Europe.

Sales in the railway station channel rose +12.6% (+13.4% at constant rates), which Autogrill primarily attributed to new openings in Dutch railway stations.

In other channels, sales were down -3.2% (-2.8% at constant rates) due to exits from various points of sale in US shopping centres.

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EBITDA is continuing to grow faster than revenue at Autogrill
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Summary of Autogrill’s first half 2016 performance by region

Income data by geographic area

In North America, HMSHost generated revenue growth of +4.1% (+5.0% at constant rates) to US$1,145.3 million. The increase was the result of +3.1% like-for-like growth and a positive +2.6% balance of new openings and closures.

Sales in the airport channel, net of the US retail business, were up +5.7% (+6.4% at constant rates), driven by an expansion of operations. Motorway revenues were up +2.3% (+4% at constant rates) thanks to an increase in average spend and new openings.

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Performance summary of Autogrill’s operations in North America

In the company’s International operations, revenues of €195.7 million were generated, which represents year-on-year growth of +33.3% (+37.6% at constant rates). The increase was the result of +10.8% like-for-like growth and a positive +21.0% balance of new openings and closures.

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Performance summary of Autogrill’s International operations

Revenues in Northern Europe rose +41.1% (+42.6% at constant rates). The company attributed this to “excellent performance” at Amsterdam Schiphol Airport (sustained by the increase in passenger traffic), expansion of operations in the UK and Finland, and entry to the railway station channel in the Netherlands.

In the Rest of the World, revenues were up +16.9% (+26.2% at constant rates) thanks to strong growth in operations in Vietnam and the Indian airports of Bangalore and Hyderabad, as well as the start-up of business in China, at Beijing airport.

Overall revenues in Italy amounted to €488.4 million, slightly down on the €489.4 million recorded in the first half of 2015. Motorway revenues were down -0.2% to €379.3 million. Airport sales amounted to €34.1 million, down on the figure for the reference period of €35.6 million. This was the result of a number of closures at Bologna airport, Autogrill said. Railway station sales were up +2.5% to reach €18.2 million. Autogrill noted a particularly strong performance at Milano Centrale railway station’s Bistrot outlet.

In Other European countries, revenues came to €346.2 million, up +0.4% (+1.2% at constant rates). “The generally positive trend, especially on motorways, and the opening of new points of sale at Geneva airport made it possible to offset the change in the operating perimeter following the exit from French railway stations at the beginning of June 2016 and the consequences of the terrorist attacks in Belgium,” Autogrill stated.

Revenues in the motorway channel were up +0.6% (+1.3% at constant rates) to €195.7 million, with good performance in France, Germany and Spain offsetting the effects of some closures in Belgium.

The airport channel saw revenues rise +10.4% (+11.6% at constant rates). In the railway station channel, revenues were down -9.5% (-9.1% at constant rates).

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Performance summary of Autogrill’s operations in Europe

Looking ahead, Autogrill said performance in the first six months and the first weeks of July was consistent with the Group’s guidance for 2016 issued in May, and was adjusted solely to reflect the effects of the disposal of the French railway station business completed in June.

Sales in the first 28 weeks of the year were up +3.8% (+4.6% at constant rates) on the same period in 2015.

“The objectives for the year, at a €/US$ exchange rate of 1.10, are therefore updated as follows: revenues in a range of €4,465-4,565 million; the range forecast for EBITDA moves up to €411-426 million; and capital expenditure [will be] at around 5% of revenues for the year,” the company said.

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