ITALY. Travel-related food & beverage and retail giant Autogrill today reported a +1.7% year-on-year rise in sales (+2.9% at constant FX) to €4.6 billion for 2017 (preliminary results).
The performance was driven by +3.3% like-for-like growth and the positive effects of acquisitions in North America in 2016.
New contract wins and renewals were worth €9.8 billion (over their contract terms) in 2017
Airport F&B operations did well, with sales rising +6.6% (+5.0% like-for-like).
The group’s European business saw positive like-for-like growth in the motorway catering sector. Internationally, strong contributions from new openings and double-digit like-for-like growth spurred revenues.
Autogrill said that the 2017 performance is consistent with the three-year guidance announced in March 2017.
• The acquisitions made in the US (CMS, Stellar Partners) in the second half of 2016 had an impact of €58.9 million in 2017
• Airports: revenue rose by +4.8% in the period (+6.6% at constant exchange rates), with all regions contributing. Like-for-like growth of +5.0%.
• Motorways: revenue decreased by -1.4% (-1.0% at constant exchange rates), mainly due to store closures associated with the network rationalization in Europe. Like-for-like growth was +1.1%
Contracts renewals and gains
In 2017, contract renewals were worth about €8.0 billion and newly won contracts about €1.7 billion, totalling almost €9.8 billion with a healthy average contract duration of about 15 years.
In addition to several renewals of major contracts, including the New Jersey Turnpike and Maui and Zürich airports, the group won several new contracts. These included Austin–Bergstrom International and Louis Armstrong New Orleans International airports in the US and Soekarno–Hatta International in Jakarta, Indonesia, plus locations where the group is already present, such as Copenhagen, San Francisco and Beijing Capital International airports.
These wins and renewals enhanced the average contract duration and extended the portfolio.
Revenue in North America grew by +3.7% (+3.5% at constant exchange rates) in 2017.
Like-for-like growth of +2.9% was the main contributor to the good revenue progression, despite a slowdown related to extreme weather events that affected the region.
The new openings, including Chicago O’Hare and Charlotte Douglas airports, and the impact of the 2016 acquisitions of CMS and Stellar Partners, more than offset the reduction of the group’s presence at Tampa International Airport and in the shopping malls sector.
The robust regional performance reflected strong like-for-like growth of +10.5%, boosted by multiple new openings, including in the Netherlands, Finland and Norway. In Indonesia, the group unwound a joint venture, which is classified under disposals.
Revenue decreased by -2.2% in the year (-2.1% at constant exchange rates), mainly due to the disposal of the French railway stations business in 2016 and to selective renewals on the European motorways.
Like-for-like revenue growth was +1.9%; this figure includes a +1.1% positive gain from the Italian motorways and a strong performance at airports across Europe (+6.8%).
Net openings and closings reflected the impact of the network rationalization in Italy and the exit from some low-profitability locations on German motorways. Disposals relate to the French railway stations business sold in 2016.
NORTH AMERICA ANALYSIS
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