INTERNATIONAL. Travel restaurateur Autogrill Group has reported on the sharp impact of the COVID-19 pandemic on its business in the first four months of 2020. Revenue in the period reached €963 million, down by -33.9% year-on-year at current exchange rates (-35% at constant rates). Revenue in the month of April alone fell by -88% at current exchange rates, with 80% of stores closed.
EBITDA (under the IFRS16 accounting method) of €50.8 million for the period was sharply down on €178.6 million in the same period in 2019) and EBIT (IFRS16) -€157.7 million for the period compared to -€8.8 million a year ago.
Of early trading in May, it highlighted some signs of recovery in Italy and Rest of Europe and particularly on motorways, after the partial lifting of lockdown measures in the first half of the month.
Group CEO Gianmario Tondato Da Ruos said: “As we have proved in the last couple of months, we quickly adapted our business to the changing traffic volumes. We implemented several actions to mitigate the financial and operational impacts of COVID-19 and now, as many countries are moving to reopen, we are getting ready for the next phase. During this period we implemented a new commercial offer adjusted to new consumers’ needs, always with the health and safety of our employees and our customers in mind.”
The company noted that its cash burn in April was around €100 million, due to both the weak trading from travel restrictions and the partial unwinding of working capital from the first quarter of 2020. As mitigating initiatives take effect, starting from June 2020 monthly cash burn is expected to level out to about €35-40 million, assuming H2 revenue down -75% compared to H2 2019.
Autogrill also said that it has no sizeable debt maturities until 2023, after the refinancing of a €150 million term loan originally expiring in 2021.
In North America like-for-like performance was down -37.9% year-to-date, with a negative impact on revenue from COVID-19 of approximately US$310-315 million. Revenue in that region was down -96% at current exchange rates in April, with around 80% of units closed.
Europe posted a like-for-like performance of -39.1% year-to-date with the estimated negative impact from the crisis of €200-210 million. Revenue was down -86% at constant exchange rates in April with 53% of outlets closed at 30 April (Italy: 36%; Other European countries: 81%).
The International division had like-for-like performance of -14.5% year-to-date and a negative impact on revenue from COVID-19 of approximately €30-35 million. Revenue in April alone was down -58% at current exchange rates with 82% of stores closed.
Autogrill has put in place a major cost saving plan. It said it has reached agreements with “a significant number of landlords worldwide to abate or defer rents and [is in] ongoing discussions for further relief”.
In preparing for the next phase, in the short term it will restart business as lockdowns and travel bans are lifted, with an initial focus on domestic travel in key markets. In the mid-term Autogrill said it would adjust its cost structure, become more flexible and evolve its offer to respond to disruptions and adapt to a “new normal” (e.g. new health and safety standards, evolving consumer attitude, future travel and transport patterns).
Commenting on the outlook, the company stated: “Although we see early signs of some countries opening up, at the current time, and in light of a rapidly changing environment, it is difficult to forecast the magnitude and duration of the impact of this global crisis and to provide guidance for the remainder of the current financial year.”
