INTERNATIONAL. Autogrill has reported +5.2% year-on-year consolidated revenue growth in the first half of 2018, to €2.1 billion.
Like-for-like revenue growth was +3.9%, and was largely driven by a strong +5.3% increase at airports.
Autogrill noted that its February acquisition of Le Crobag, which has over 100 points of sale at German railway stations, “more than offsets” the disposal of non-strategic activities in Europe.
Underlying EBITDA was down -1.3% to €139.5 million. Autogrill said margins were impacted by cost pressures in North America and the costs of ongoing projects designed to improve the company’s operating model. The benefits of these projects are expected to be seen from the second half of 2018, the company said.
Autogrill added €1.6 billion worth of contracts in the period (around €1 billion in new contracts and €0.6 billion in renewals) with an average lifespan of 7.6 years.
“We are progressing on our ambitious three-year journey we set out for the group,” commented Autogrill CEO Gianmario Tondato Da Ruos. “2017 was the start of an important transformation, including the reorganisation of the Italian business. In 2018 we are working on a series of projects that are focused on making the operating model more efficient.
“The first half of 2018 has presented us with some challenges, but all the initiatives we are implementing give us confidence that we have the building blocks in place to achieve our 2019 goals.”
In its outlook for 2018, Autogrill said it expected to achieve revenues of about €4,700 million, underlying EBITDA of between €410 million and €420 million, and underlying EPS of between €0.38 and €0.42.
Revenue by geography
In North America, revenue amounted to US$1,252 million in the first half, an increase of +3% (+3.4% at current exchange rates). There was solid like-for-like growth (+3.1%), driven by a +3.8% increase in airports.
New openings, including stores at Fort Lauderdale and Charlotte airports, more than offset the company’s planned exit from the shopping centre channel, Autogrill noted.
In the International division, revenue amounted to €267.8 million, an increase of +22.1% (+17.3% at current exchange rates). Like-for-like growth was a strong +9.8%. New openings, particularly at airports in Norway (Oslo), Vietnam (Cam Ranh) and India (New Delhi), made a significant contribution.
Revenue in Europe amounted to €803.9 million in the first half, an increase of +3.4% at constant exchange rates (+2.6% at current exchange rates). Growth was driven by a strong like-for-like performance of +3.2% and the acquisition of Le Crobag. At airports, like-for-like growth was +7.7%, and was +8.8% in railway stations.
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