ITALY. Baggage company Safe Bag has posted a -5.6% year-on-year decrease in revenues in 2016, to €26.5 million. It attributed the reduction in turnover to the closure of low-margin concessions in 2015.
However, net profit was up +272% to €3.1 million, and EBITDA amounted to approximately €4.6 million, a +662% increase.
Safe Bag said the large increases were driven by four main factors: the conclusion of its internal reorganisation process; the closure of operations at airports “with insufficient or negative” operating margins; the better performance (in terms of margins) at Miami Airport; and the deployment of ancillary services on the company’s entire European network.
The USA is the group’s largest market with about 41% of total revenues. France is the second largest market with 31% of revenues, followed by Italy (11%), Portugal (9%), Switzerland (6%) and Canada (2%).
Safe Bag was founded in 1997 and provides a security and baggage tracing service for airport passengers via its integrated portfolio of solutions. These include the wrapping of luggage; traceability; refund in case of loss or damage; and travel products and accessories.
“With an EBITDA of €4.6 million, we celebrate the results of the efforts made in recent months,” said Safe Bag CEO Alessandro Notari. “The reorganisation, renegotiation and, in some cases, renunciation allowed us to react to market adversities and to achieve adequate margins and cash flow from the sales portfolio acquired over the years. At this point we can say that the turnaround has been completed.
“Today, Safe Bag is a team inspired by [Chairman and founder Rudolph Gentile’s] ideas, where everyone has a clear and well-defined role. It is time to turn over a new leaf and, with the May Business Plan, to launch the next phase in the group’s history.”