Meeting Friday, July 29, 2016, the Board of Directors of Autogrill S.p.A. (Milan: AGL IM) examined and approved the consolidated results as of 30 June 2016. 1st half 2016 saw significant improvements in all the main economic and financial indicators.
Group consolidated revenues were up 4.6% (up 5.4% at constant rates) on 1st half 2015.
There was even stronger improvement in EBITDA, which grew 13% (13.8% at constant rates) net of capital gain on the disposal of business in French railway stations[1] and pushed up the margin from 6.3% to 6.8%.
Improved operating profitability and the capital gain on the disposal of business in French railway stations (€14,9m) made it possible to post profits of €16.8m against losses of €15.6m in 1st half 2015.
Net cash flow generation gross of the dividend pay-out was €31.6m compared to €5.5m in 1st half 2015.
The Group continued to strengthen its portfolio in the 1st half of the year. In North America, where Autogrill leads the market through the subsidiary HMSHost, the 1st half saw the winning of new contracts and expansion at Los Angeles and Las Vegas airports through the agreement reached with Concession Management Services, Inc. (CMS) to acquire its f&b business in those airports.
In the International area, the Group secured further points of sale in Beijing International Airport, entered the new international airport of Doha in Qatar and consolidated in the United Arab Emirates by expanding in Abu Dhabi International Airport.
In Europe, the Group continued to rationalize its operations and to redefine the offering by disposing of its railway station business in France and opening its first Bistrot on the motorway in the Fiorenzuola D’Arda service area and the new “Eataly x Autogrill” in the Secchia Ovest service area (Modena).
Outlook for 2016
Sales in the first 28 weeks[2] of the year were up 3.8% (up 4.6% at constant rates) on the same period in 2015[3].
Performance in the first six months and the first weeks of July bears out the Group’s guidance for 2016 issued in May, adjusted solely to reflect the effects of the disposal of the French railway station business completed in June.
The disposal of the French railway station business entailed: revenues lower by around €35m, EBITDA higher by €11m, being the amount of capital gain realized through the disposal (€14.9m) net of the forecast sales margin of the transferred business (estimated at around €4m); no material effect on the ratio of Group capital expenditure to sales.
It is not yet possible to quantify the impact on 2016 of the consolidation of CMS’s business, since completion of the acquisition is still in progress.
Given the effects described above, the objectives for the year, at a €/$ exchange rate of 1.10, are therefore updated as follows: revenues in a range of €4,465-4,565m; the range forecast for EBITDA moves up to €411-426m; capital expenditure at around 5% of revenues for the year.
[1] In June 2016 Autogrill Group disposed of its restaurant concessions in French railway stations by selling the100% particiption in Autogrill Restauration Service s.a.s. to Elior Group for €27.5m.
[2] Average exchange rates: 2016: €/$ 1.1155; 2015: €/$ 1.1152
[3] The figure excludes Business to Business (franchisees and wholesale retail). Revenues from points of sale account for around 98% of total Group revenues.
