The macroeconomic scenario for the two business segments in 2011

In 2011 Autogrill posted positive economic and financial results despite the economic slowdown registered during the second half of the year and a not particularly positive traffic flow.

The Group’s geographical diversification, by business and channel, enabled it to generate a 4% increase in revenues against the previous year. Growth was mainly driven by the performance in airports (+7.1%), which posted excellent results compared to traffic flows. Travel Retail recorded a 10% increase in sales with a positive performance in all the countries in which the Group operates. Food & Beverage  performed well in the US airports, while the reduction in highway traffic, affected also by soaring fuel prices, which, in fact, hit a record high in many European countries, led to a limited revenue growth (+1.5%), particularly in Europe in the Food & Beverage business segment . EBITDA grew 3.8% at the consolidated level, thanks to the contribution provided by Travel Retail, which provided better margins on sales, thus offsetting the lower profitability generated by Food & Beverage, penalized by inflationary trends in food raw materials and increased labor costs.

Net income amounted to € 126.3m, up 26.7% against the previous year. In the year of reference various actions were implemented aiming at improving operating efficiency and adapting to a rapidly changing economic scenario. In particular, the Group is re-defining its presence in Europe, giving priority to profitability instead of growth by acquisitions. In addition, the Group triggered a revision process of its structure, mainly in Food & Beverage, and continued to invest to innovate products and processes.

In 2011 the agreement with Starbucks was renewed. A strategically relevant result for Autogrill, which will keep the exclusive right to the brand in airports and on the highways in North America for another ten years. At the beginning of 2012, this led to the extension of the partnership in Europe with the opening of new stores in France, Belgium and the Netherlands.

Food & Beverage

see related table

In 2011, Food & Beverage revenues amounted to € 4,023.80m, up 1.5% (-0.1% at current exchange rates) against € 4, 027.8m of 2010. The activities managed by HMSHost registered a +5.2% growth. In the US airports sales (+5.1%) on a like-for-like basis exceeded passenger traffic trends (+1.5%). In Italy revenues grew 0.7% as a result of the addition of the stores of the former Esso network, acquired in 2010. Sales on the highways, based on the same perimeter, dropped by 2.5%, penalized by a 1.1% traffic reduction. In the other European countries, despite the positive performance registered in the airports (+5.1%), sales declined by 4.1% as a result of the decision to close some stores for the purpose of optimizing the efficiency of the network.

Travel Retail & Duty-Free

see related table

In 2011 Travel Retail & Duty-Free generated revenues equal to € 1,820.8m, up 10% (+8.7% at current exchange rates) against € 1,675.7m of 2010. Excellent results were obtained in almost all the countries with sales exceeding traffic growth rates, mainly as a result of the increase in the average passengers spending. The activities in the airports of the United Kingdom, particularly driven by Heathrow and Manchester, posted a 10.8% growth with a 5.2% passenger flow growth rate. In the airports in Spain, traffic grew by 6% and sales by 7.8%, driven mainly by Barcelona and the Canary Islands. In the rest of the world revenues grew 13.2% (+9.8% at current exchange rates), in particular in Canada, Chile, Peru and Sri Lanka, despite the termination of some contracts. On a like-for-like basis, growth in the area would have been equal to 22.8% (+19.4% at current exchange rates).