GERMANY. LSG Group’s consolidated revenues for the first half of the year fell -2.8% year-on-year, to €1.6 billion.
The inflight services specialist attributed the decline to negative currency effects and the company’s voluntary withdrawal from certain markets and customer contracts.
When adjusted for currency-related factors, LSG Group said revenues would have risen by +4.4%. Changes in the group of consolidated companies increased revenue by €12 million.
The company, which specialises in the airline, railway and convenience retail industries, had an adjusted EBIT of €40 million. This was over +200% higher than in the first half of 2017, primarily due to lower transformation costs.
“Our earnings situation continues to be burdened by the high costs of restructuring our activities in view of changing customer requirements,” said LSG Group Chief Financial Officer Dr. Kristin Neumann. “However, our operating business is developing very well worldwide, and we see great success in the global expansion of our onboard retail activities in particular.”
In the first half of the year, LSG Sky Chefs extended airline catering contracts with United Airlines, American Airlines, LATAM and Cathay Dragon. Retail inMotion won a contract to manage the onboard retail activities for Etihad Airways.
LSG Group said approval to build two regional production facilities, in the Czech Republic and western Germany, marked an important milestone in the transformation of its operating model.
“In view of the increasing passenger numbers worldwide and our very clear successes in creating innovative service concepts – both in classic catering and in the growing onboard retail segment – we are and will remain well positioned,” commented LSG Group CEO and Chairman of the Executive Board Erdmann Rauer.
“We are focused on investing in the restructuring of our activities and the expansion of our portfolio in order to successfully and sustainably secure the long-term future of the LSG Group.”
