INTERNATIONAL. Autogrill Group has reported first-half revenue of €938.3 million, down by -14.4% year-on-year (and -10.6% at constant exchange rates). Like-for-like revenue performance was down by -9.5% on H1 2020, though the company noted an improving traffic trend at US airports and in the motorway channel across all geographies. Continued rationalisation of the network was partially offset by new openings at airports in North America (Salt Lake City and Las Vegas).
The group posted a net loss of €148.3 million in the half, an improvement on the €271 million loss of a year ago.
Free cash flow of -€55.9 million also improved compared to a year ago (-€397.2 million). The company said total liquidity of €1.3 billion on 30 June compares favourably to €0.6 billion on 31 December 2020 as a result of an equity raising drive together with cash preservation initiatives.
By region, around 65% of stores are now open in North America, with revenues of US$577.4 million down by just -1.1% at current exchange rates. Europe had H1 revenues of €403.4 million, up by +1.8% at current rates, with 92% of total stores open as of 30 June 2021 (of which: Italy 96%, other European countries 86%).
The International business H1 revenues of €55.8 million, down by -67.3% year-on-year. In this division, 51% of outlets are open as of 30 June.
The company completed the sale of its US motorways business on 23 July, to a consortium that is majority owned and led by Blackstone Infrastructure Partners, which includes Applegreen Limited and B&J Holdings, having obtained necessary governmental approvals and consent from landlords.
The total sale price is around US$381 million, after post-closing price adjustments and is subject to potential increase through a earn-out mechanism on 2022 and 2023 revenues. It will generate an estimated capital gain of about US$150 million.
The company said that despite limited tender activity due to the pandemic, it had landed new contract wins and renewals worth around €1 billion, with average duration of three years:
- − Contract renewals: approximately €0.8 billion
- − Newly won contracts: approximately €0.2 billion
Autogrill has forecast full-year revenues in a range between €2.3 billion and €2.6 billion, with free cash flow improving from previous estimates. FY2024 targets remain unchanged at:
- − Revenue: €4.5 billion
- − Underlying EBIT margin: around 6%, about 140bps more compared to FY2019
- − Capex as a percentage of revenue: between 4.8% and 5.4%
- − Free Cash Flow: between €130 million and €160 million
Group CEO Gianmario Tondato Da Ruos said: “The period just ended represents a turning point for our group. The changes in our business model, implemented during the crisis to preserve profitability and cash, are proving their effectiveness. The positive cash generation registered in Q2 2021 is a clear demonstration of this. The success of the capital increase is an extraordinary sign of the market trust. Thanks to an outstanding management of the operations, we are able to improve our FY2021 Free Cash Flow guidance, and to confirm our 2024 targets at the same time.”
