Income statement results

Autogrill’s earnings and financial performance were positive in 2011 and showed improvement on the previous year, despite the economic slowdown during the second half and a traffic trend that was less than brilliant.

Dynamic traffic in the airport channel supported  sales growth in the Travel Retail & Duty-Free business, which takes place solely at airports, while Food & Beverage has a network divided equally between airports and motorways.

The Group’s diversification in terms of geography, businesses and channels produced  revenue growth of 4.0% (+2.5% at current exchange rates), which outpaced traffic data in the main countries and channels served.

EBITDA rose by 3.8% (+1.9% at current exchange rates) on 2010, thanks to the contribution of Travel Retail & Duty-Free, which offset the lower profits of Food & Beverage caused by the inflation of food raw material prices, higher personnel expense, and reorganization costs.

In the Food & Beverage business the Group has begun to revise its organizational structure, in order to improve efficiency and response time in the face of the challenges posed by today’s economy. It has also started to redefine its  presence  in this segment, with a view to recovering profitability and limiting investments with respect to growth.

In July 2011 the Group finished refinancing its outstanding credit lines, ahead of the original maturities, achieving the dual benefit of extending the average duration of loans by more than two years while paving the way for the financial independence of the Travel Retail & Duty-Free segment.

The Group’s performance produced  a significant rise in profit for the year, from € 103.4m in 2010 to € 126.3m.

Condensed consolidated income statement14


(m) 2011 % of revenue 2010 % of revenue 2010 At constant exchange rates
Revenue 5,844.6 100.0% 5,703.5 100.0% 2.5% 4.0%
Other operating income 154.0 2.6% 138.6 2.4% 11.1% 10.5%
Total revenue and other operating income 5,998.6 102.6% 5,842.2 102.4% 2.7% 4.1%
Raw materials, supplies and goods (2,139.6) 36.6% (2,089.9) 36.6% 2.4% 3.5%
Personnel expense (1,472.6) 25.2% (1,442.1) 25.3% 2.1% 3.9%
Leases, rentals, concessions and royalties (1,193.9) 20.4% (1,150.8) 20.2% 3.7% 5.4%
Other operating costs (575.5) 9.8% (554.0) 9.7% 3.9% 5.4%
EBITDA 617.0 10.6% 605.4 10.6% 1.9% 3.8%
Depreciation, amortization and impairment losses (314.0) 5.4% (328.1) 5.8% (4.3%) (9.2%)
Impairment losses on goodwill 0.0% (22.2) 0.4% n.s. n.s.
EBIT 303.0 5.2% 255.2 4.5% 18.7% 21.8%
Net financial expense (82.8) 1.4% (74.9) 1.3% 10.6% 11.9%
Impairment losses on financial assets (0.7) 0.0% (0.5) 0.0% 62.8% 99.2%
Pre-tax profit 219.4 3.8% 179.8 3.2% 22.0% 25.9%
Income tax (80.3) 1.4% (89.4) 1.6% (10.2%) (8.4%)
Profit from continuing operations 139.1 2.4% 90.4 1.6% 53.9% 60.6%
Profit from discontinued operations 25.0 0.4% n.s. n.s.
Profit attributable to: 139.1 2.4% 115.4 2.0% 20.6% 25.2%
–  owners of the parent 126.3 2.2% 103.4 1.8% 22.1% 26.7%
–  non-controlling interests 12.8 0.2% 12.0 0.2% 7.2% 12.0%


14 Due to the disposal of the Flight business, the segment’s results for 2010 are shown separately from the Group’s continuing operations (Food & Beverage and Travel Retail & Duty-Free), under “Profit from discontinued operations”

“Revenue” and “Raw materials, supplies and goods” differ from the amounts shown in the consolidated income statement primarily because they do not include revenue from the sale of fuel and the related cost, the net value of which is classified as “Other operating income” in accordance with Group protocol for the analysis of figures. This revenue came to € 577.6m in 2011 (€ 310.6m in 2010) and the cost to € 555.7m (€ 296.6m the previous year)



Autogrill closed 2011 with consolidated revenue of € 5,844.6m, an increase of 4.0% on the previous year’s € 5,703.5m (+2.5% at current exchange rates).

Most of the growth came from the Travel Retail & Duty-Free segment (+10%, +8.7% at current exchange rates), which benefited from the combined effect of an upturn in airport traffic and a strong increase in spending per passenger. Food & Beverage reported a more limited increase in revenue (+1.5%, –0.1% at current exchange rates): a positive performance at North American airports was offset by weakness in the motorway channel, due (especially in Europe) to the decline in traffic and the closure of various European locations.

Revenue by business segment

Revenues by business segment


Revenue gained a substantial 7.1% in the airport channel (+4.6% at current exchange rates), thanks to the Group’s confirmed ability to outperform traffic. Revenue in the motorway channel dipped by 0.3% (–0.5% at current exchange rates), due to limited traffic and the closure of various European locations, particularly in France and Belgium. The other channels also showed a decrease, as the exit from certain shopping mall and high street locations was only partially offset by new openings at railway stations.

Revenue by  channel

Revenue by channel



Consolidated EBITDA in 2011 amounted to € 617m, an increase of 3.8% (+1.9% at current exchange rates) with respect to the € 605.4m recorded in 2010. EBITDA factors in reorganization costs of € 12.4m, mostly in the Food & Beverage segment, and includes non-recurring income of € 13m (€ 8m for the early settlement of contractual provisions regarding the sale of the Flight business and € 5m for the sale of some locations in Belgium).

EBITDA amounted to 10.6% of revenue, in line with the previous year.

The EBITDA margin was stable due to the opposite trends in the two business segments. In Food & Beverage, the sharp increase in the cost of goods sold was one of the major reasons for the decline in the segment’s EBITDA, but at  the consolidated  level  this  was offset  by a substantial  increase  for the Travel  Retail  & Duty-Free business, which enjoyed a favorable sales mix due to the increase in passengers traveling outside Europe and the efficiencies of integrated purchasing.

Depreciation, amortization and  impairment losses

In 2011 depreciation, amortization and impairment losses amounted to € 314m, down from € 328.1m in 2010, due to a decrease in the impairment of property, plant, equipment and intangible assets (from € 23m to € 15.1m).

Impairment losses on goodwill

There was no impairment of goodwill in 2011, while in 2010 goodwill on motorway operations in Holland was impaired by € 22.2m.

Net  financial expense

In  2011  net financial  expense  came  to € 82.8m, up from  € 74.9m in  2010.  This  includes  € 5m in non-recurring charges, namely the portion of bank fees paid in previous years on loans closed out during the refinancing process, and expenses relating to the reversal of financial income accrued and recognized in prior years with respect to a commercial counterparty.

The average cost of debt was 4.9% in 2011 (4.1% the previous year).

Income tax

Tax decreased from € 89.4m in 2010 to € 80.3m.

The tax rate came to 36.6%, compared with 49.7% of the previous year. Excluding IRAP (Italian regional business tax), the average tax rate was 31.2%, down from 43.2% in 2010. The improvement principally reflects the reduced tax rates in the United Kingdom (impacting both current and deferred taxes), the fact that 2011 income relating to the sale of the Flight business was essentially tax exempt, the different distribution of income over the various areas served by the Group, and the non-deductibility, in 2010, of the impairment loss on goodwill for the Dutch motorway operations.

Profit from  continuing operations

The profit from continuing operations, net of the Flight segment disposed of in 2010, amounted to € 139.1m compared with € 90.4m in 2010 (+53.9%, or 60.6% at current exchange rates).

Profit from  discontinued operations

The net profit from discontinued operations (Flight segment), for 2010 only, came to € 25.0m.

Profit for the  year

Profit attributable to owners of the parent increased by 26.7% on the previous year (+22.1% at current exchange rates), amounting to € 126.3m, compared with € 103.4m in 2010 which included € 25m relating to the Flight segment (of which € 11.1m in capital gains for its disposal).

Non-controlling interests came to € 12.8m (€ 12.0m in 2010).