SWITZERLAND. Inflight services company gategroup today revealed preliminary full-year results for 2017, with revenues climbing +35% and EBITDA by +50%. The results were buoyed by expansion of the company’s airline network, the integration of Servair and an improved retail performance.
Revenues for the year hit CHF4.6 billion (US$4.87 billion), with EBITDA at CHF300 million (US$318 million). EBITDA margin improved by 60 basis points to 6.6%.
In the past 18 months, gategroup’s airline customer base has grown by more than 100, it noted. New markets for the business include France, Africa as well as locations in Latin America and Asia Pacific. One notable gain came in Korea recently, where gategroup announced a landmark 30-year contract as the sole inflight caterer for Asiana Airlines at Incheon Airport.
Gategroup said that its “focus on commercial innovation has delivered attractive culinary and retail on board solutions which have proven to enhance the passenger experience, allowing renewals and new contract wins. In addition, gategroup has increased its speed to market and continued to optimize its cost structure, resulting in improved margins.”
CEO Xavier Rossinyol said: “2016 and 2017 have been transformational years for gategroup. In early 2015, we defined a new strategy and organisational setup which focused on our core capabilities and introduced a simplified business model. We also further expanded our global network and strengthened our customer relationships to bring added value through innovations aimed at enhancing the customer experience.
“Our 2016 and preliminary 2017 results demonstrate that the implementation of our new strategy also delivers a strong financial performance. We are clearly on the right track, and it has allowed us to more than double our EBITDA over the past two years. Furthermore, the integration of Servair provides us with a strong platform to reinforce our culinary DNA and expand our activities in key markets. We are at the mid-point of implementing our strategic roadmap and are confident this positive momentum is setting a solid foundation for future growth.”