MILAN – The Board of Directors of Autogrill S.p.A. (Milan: AGL IM) has examined and approved the preliminary consolidated revenue results, as of 31 December 2017.
Autogrill posted 2017 revenue of €4.6bn, up 1.7% (+2.9% at constant exchange rates)[1]-[2], driven by like for like growth and the positive effects of the acquisitions in North America in 2016.
The like for like growth was very positive (+3.3%)[3], with a contribution by all regions, and particularly at airports, despite the last part of the year – notably September – being impacted by extreme weather, including hurricanes Harvey and Irma, in the US, that have caused a slowdown of traffic flows.
The net balance of openings and closings is slightly negative: new openings during the year primarily refer to the enlargement of the Group’s presence at airports in Northern Europe and Asia, while closings mainly relate to the reduction of perimeter at Tampa airport, in the US, and to the completion of the selective renewals started in 2016 on motorways in Italy and in Germany.
The acquisitions and disposals, made to support the Group’s strategy to preserve the geographies and the channels of business, had a net positive impact on revenue growth over the year: the acquisitions made in the US in the second half of 2016, had an impact of €58.9m[4] in 2017, more than offsetting the effect of the disposal of the French railway stations business (sold in June 2016).
These positive results were supported by the good performance at airports, where revenue rose by 4.8% in the period (+6.6% at constant exchange rates), with all regions contributing. The airport channel posted a like for like growth of +5.0%3.
In the motorway channel, revenue decreased by 1.4% (-1.0% at constant exchange rates), mainly due to the store closures associated with the network rationalization in Europe. Like for like growth was +1.1%3.
Other Channels decreased by 7.0% (-6.4% at constant exchange rates) primarily due to the disposal of the French railway station business, as well as the exit from certain point of sales in the US shopping malls. Like for like growth was +1.8%3.
Contracts portfolio
In 2017, contract renewals were worth about €8.0bn and newly won contracts about €1.7bn, for a total amount of approximately €9.8bn[5] and average duration of about 15 years.
In addition to several renewals of major contracts, including the New Jersey Turnpike and Maui and Zurich airports, in 2017 the Group won new contracts both in new locations, such as Austin and New Orleans airports in the US and Jakarta airport in Asia, and in locations where it is already present, such as Copenhagen, San Francisco and Beijing airports.
These wins and renewals further enhanced the Group’s portfolio of contracts, as well as an increase of the average duration.
[1] Data converted using average FX rates: FX €/$ December 2017 YTD avg. 1.1297 and December 2016 YTD avg. 1.1069
[2] At the beginning of November 2016, the Group finalized the disposal of its operations on Dutch motorways, which used to constitute a Cash Generating Unit. Therefore 2016 revenue does not include the Dutch motorways business, which is stated separately as required by the accounting standard IFRS 5
[3] See “Definitions” for revenue like for like growth calculation
[4] Revenue generated by the acquired businesses from 2017 to the corresponding month of acquisition in 2016
[5] Overall value of the contracts calculated as the sum of expected sales of each contract for its entire duration. Conversion to € is at 2017 current exchange rates
