MILAN, Italy – Meeting on 12 March 2015, the Board of Directors of Autogrill S.p.A. (Milan: AGL IM) examined and approved the consolidated financial statements and the Company’s draft financial statements for 2014.
The year 2014 was characterized by sustained growth in passenger traffic in airports and a recovery in motorway traffic in all the main geographical regions in which the Group operates. Passenger traffic in airports was up 5.1% worldwide.
Growth was significant in Europe (up 5.3%) and North America (up 3.3%) and particularly sustained in airports in the Middle East (up 9.4%) and Asia (up 5.9%).
The motorway channel in Italy showed faint signs of recovery, with traffic up 0.9%, due in part to falling fuel prices in the last quarter. Motorway traffic in the United States grew 0.5%.
In this scenario Autogrill carried forward its business development strategy, both by strengthening its commercial operations, especially in the airport channel, in markets where the Group is already active, like the United States, the UK, Germany and Scandinavian countries, and by exploiting major opportunities to expand in emerging and faster growing economies like Vietnam, Indonesia, Turkey and United Arab Emirates.
In parallel, given the persistent weakness of the Italian market, the Company concentrated on redefining its operating perimeter through selective renewals in the motorway channel.
In 2014 the Group laid the foundations for a new phase of growth. The Company won important contracts in airports in Northern Europe, Asia and the Middle East and consolidated its leadership in the United States. In Italy, where the situation continues to be difficult, Autogrill started, with last year’s season of renewals, to redefine its operations in the motorway channel,” says Autogrill CEO Gianmario Tondato Da Ruos.
“Thanks to these actions and the enhanced flexibility of its business model, Autogrill has managed to handle the crisis and limit its effects. We are confident that the Group will able to take the opportunities for growth that arise,” concludes Tondato.
Events after 31 December 2014
On 24 February 2015 Autogrill presented “Il Mercato del Duomo”, the Group’s flagship store set to open in the middle of Milan in May in time for Expo 2015.
On 28 February 2015 Autogrill S.p.A. transferred the travel retail business run by HMSHost in Atlanta and Oakland airports and the Empire State Building to World Duty Free Group.
This transfer closes the operation carried out and disclosed to the market on 6 September 2013 whereby the subsidiary HMSHost Corp. transferred its travel retail business in US airports to World Duty Free Group. The price agreed to by the parties for the transfer of residual business was $19m.
Outlook 2015
Sales in the first nine weeks of 2015 were up 1% at constant rates compared to the same period the previous year (up 9.8% at current rates).
Revenues in North America were up 2.1% overall. US airport sales grew 3.9%.Performance in the International area was excellent, up 26.3%, thanks also to numerous new openings.
Contraction in sales in Italy (down 7.9%) due to the reduced operating perimeter linked to selective renewals in the motorway channel and closures of points of sale in 2014. Growth in sales of 3.6% in Other European Countries.
In 2015 the Group will focus on increasing sales and margins in North America by leveraging the positive phase in the economic cycle and the favourable trend in traffic, facilitated by falling energy costs.
In the International area, management will focus on bringing the many contracts won in 2014 to full capacity operation and on pursuing further development opportunities in the airport channel.
In Italy, Autogrill will carry forward its selective investment strategy and the efficiency initiatives designed to complete its restructuring program. In Other European Countries the Group aims to exploit the advantages arising from a possible recovery in spending in the euro area.
