INTERNATIONAL. A strong performance from the airports division helped Autogrill grow revenues by +2.9% year-on-year in 2017, to €4.6 billion. Like-for-like revenue growth was +3.3%. EBITDA slipped by -3.1% to €399 million with net profit down by -2.1% to €96.2 million. The results today follow a preliminary announcement on 8 February.
In 2017 the company added €9.8 billion worth of contracts (around €8 billion in renewals and over €1.7 billion in new contracts) with an average span of 15 years.
The company noted that its total contract portfolio was valued at a combined €36 billion, with an average duration of seven years-plus.
Major contract renewals included those at Zürich and Maui airports. New contracts in new locations included Austin and New Orleans airports in the USA and Jakarta Airport in Asia) and there were additions to existing business at Copenhagen, San Francisco and Beijing airports.
Autogrill Group CEO Gianmario Tondato Da Ruos said: “2017 was another good year: the group continued to grow, with a solid like-for-like performance in all regions. The contracts portfolio rose to €36 billion, with a €10 billion awarded and renewed in 2017 alone. Efficiency gains allowed for significant improvement in margins. For 2018, we expect to be well positioned to take advantage of this favourable momentum in the market. We will continue to pursue profitable growth by improving margins further, so we can deliver on our commitments to our shareholders.”
The company highlighted in particular the strong showing from the airports business (revenue +4.8%, like-for-like +5%), even with traffic slowing in the USA during the periods affected by Hurricanes Harvey and Irma.
Acquisitions in the USA made in the second half of 2016 contributed €58.9 million last year, which more than offset the disposal of the French railway station business (completed in June 2016), noted Autogrill.
In North America, revenue amounted to US$2,707 million in 2017, an increase of +3.5% (+3.7% at current exchange rates). There was solid like-for-like growth (+2.9%), despite the slowdown in the second half of 2017 caused by hurricanes in Florida and Texas. New openings, including those at Chicago and Charlotte airports, and the acquisition of CMS and Stellar in 2016, more than offset the decrease of business closure at Tampa Airport and the planned exit from the shopping centre channel.
In the International division, revenue amounted to €512.3 million in 2017, an increase of +19.3% (+17.2% at current exchange rates) compared to 2016. Like-for-like growth was a robust +10.5%. New openings, particularly in the Netherlands, Finland and Norway, made a significant contribution. In this division, disposals related to the unwinding of a joint venture in Indonesia. The group said that its development and growth in Indonesia will continue thanks to a new contract awarded at Jakarta Airport’s International Terminal.
Revenue in Europe amounted to €1,686.1 million in 2017, down -2.1% at constant exchange rates (-2.2% at current exchange rates) compared to the prior year. This was attributed to the disposal of the French railway station business and selective renewals in the European motorway network.
FOODIE FOCUS: The Moodie Davitt Report publishes The Foodie Report, the world’s only media focused on airport (and other travel-related) food & beverage. The Foodie Report e-Newsletter is published every two weeks and The Foodie Report e-Zine every month.
Please send all news of food & beverage outlet openings, together with images, menus, video etc to Martin@MoodieDavittReport.com to ensure unrivalled global exposure.
The company also organises the annual Airport Food & Beverage (FAB) Conference & Awards. This year’s FAB will be held in Helsinki on 20 and 21 June. Click here for details.
