Autogrill: profits and cash flow generation double

Milan / IT. (aspa) Two weeks ago the Board of Directors of Italy’s Autogrill S.P.A. examined and approved the consolidated financial statements and the Company’s draft financial statements for 2015. Highlights:

• Consolidated revenues: 4’369.2 million EUR, up 11.2 percent on 3’930.2 million EUR in 2014 (up 2.0 percent at constant rates)
• Consolidated Ebitda: 376.2 million EUR, up 19 percent on 316.2 million EUR in 2014 (up 6.0 percent at constant rates)
• Net result: 64.2 million EUR against 25.1 million EUR in 2014 (up 99,1 percent at constant rates)
• Net cash flow generation: 101.5 million EUR against 51.8 million EUR in 2014
• Net financial indebtedness: 644.4 million EUR against 693.3 million EUR in 2014
• Proposed dividend of 0,12 EUR per share, ex-dividend date 06 June 2016 and payment from 08 June

The company said in its statement that 2015 has seen strong growth in passenger traffic (6.1 percent) in the world’s airports, the highest rate since 2010. Passenger traffic in North America and Europe was up 5.6 percent and 5,0 percent respectively.

In the motorway channel there was sustained growth in the United States (4.3 percent) on 2014 compared to. In Italy too, 2015 saw good growth in traffic (3.2 percent6) thanks to initial signs of a recovery of the domestic economy and falling fuel costs.

Over the year, Autogrill made further, marked progress with its growth strategy in the airport channel by strengthening its leadership in the United States, by expanding in certain European markets, such as Germany and the UK, and by entering new markets like Norway, at Oslo and Bergen airports (the latter awarded in 2016) and China, at Beijing and Sanya airports.

Sales in the airport channel were up 20.2 percent (up 5.3 percent at constant rates) driven mainly by the increase in US airport revenues, new openings and entry to new markets.

Revenues in the motorway channel were up 3.4 percent (down 0.4 percent at constant rates) compared to the previous year thanks to excellent performance on US motorways, which offset lower sales in Italy following selective renewals in the 2013/2014 tender season.

«Autogrill posted excellent results in 2015. We further strengthened our concessions portfolio and stepped up our operations in the airport and railway station channels. In particular, we took up significant growth opportunities in North Europe and Asia, where we opened over 100 new stores. Profitability rose in all our operating areas: North America, Europe and International», said Autogrill CEO Gianmario Tondato Da Ruos. «They’re results that enable us to look at the future with optimism, a future we’re working hard for by widening our contracts portfolio and by developing powerful and innovative house brands – Bistrot is a good example – that are appreciated and competitive in Italy and have been successfully exported to international markets», concluded Tondato.

Outlook 2016

• Sales in the first eight weeks of 2016 were up 4.9 percent at constant rates compared to the same period the previous year (up 6.5 percent at current rates).
• Revenues in North America rose 3.8 percent overall.
• Excellent performance was seen in the International area, with growth of 23 percent, partly due to new openings.
• In Europe, the trend towards recovery continued, with revenues growing both in Italy (2.4 percent) and Other European countries (3.9 percent).
• In 2016, the Group will aim to boost sales and profitability in North America by leveraging favourable traffic trends, commercial initiatives and efficient resources management programmes.
• In the International area, the focus will be on achieving capacity operation in the numerous contracts awarded in 2014 and 2015, as well as following up further development opportunities in countries in where the Group is already active.
• In Italy, Autogrill aims to increase sales and margins through optimum exploitation of the signs of recovery in traffic and spending seen in 2015.
• The Group’s strategy in Other European countries is similarly geared to a possible recovery in spending and to maintaining a selective approach to evaluating investment opportunities.