Performance in the fourth quarter of 2011

Revenue

Consolidated  revenue rose from € 1,488.1m in the fourth quarter of 2010 to € 1, 521.8m (+2.4%, or +2.3% at current exchange rates), thanks to the increase in the Travel Retail & Duty-Free segment (+9.9%). Food & Beverage sales were penalized by the economic downturn in several countries of the European Union.

EBITDA

Consolidated  fourth-quarter EBITDA was € 133.1m, an increase of 1.1% with respect to the same period last year (€ 131.2m), or +1.5% at current exchange rates. The fourth quarter factors in reorganization costs of € 5.6m, mostly in the Food & Beverage segment. Net of those costs, EBITDA would have increased by 5.3%. The EBITDA margin of 8.7% was essentially in line with the fourth quarter of 2010.

Capital  expenditure

Capex in the fourth quarter totaled € 89.2m, down from € 101.0m in the same period of the previous year.

Food & Beverage and Corporate

Revenue

Revenue for the fourth quarter of € 1,061.7m shows a decrease of 0.6% on the previous year’s € 1,068.9m (– 0.7% at  current exchange  rates) and was penalized  mostly  by the decrease in  traffic  on European motorways (especially in Italy), as well as the planned closure of some locations in Belgium and the Netherlands.

EBITDA

Fourth quarter EBITDA, excluding Corporate costs of € 11.7m (€ 10.3m in 2010), came to € 89.2m, down from € 92.4m the previous year (–3.9% or –3.4% at current exchange rates). The EBITDA margin was 8.4%, down from 8.6% in the fourth quarter of 2010.

Capital  expenditure

In the fourth quarter, capital expenditure came to € 83.7m (€ 86.6m in the same period of the previous year).

HMSHost (North America and  Pacific Area)

Revenue

Revenue for the fourth quarter of 2011 totaled $ 790.8m, rising by 3.1% with respect to the previous year ($ 766.9m), as increased sales in the motorway channel made up for a slowdown in airport traffic (–0.4%28).

EBITDA

Fourth quarter EBITDA amounted to $ 82.6m, –2.0% on the same period of the previous year’s $ 84.3m, and went from 11.0% of revenue to 10.4% due mainly to the rise in raw material costs.

Italy

Revenue

In the fourth quarter of 2011 revenue came to € 313.6m, down from € 326.3m in the same period of 2010 (–3.9%). The decrease is explained by the economic slowdown, reduced consumer confidence, and weak traffic (–2.3%29).

EBITDA

EBITDA for the fourth quarter was € 23.3m, an increase of 0.8% on the same period of the previous year’sm € 23.1m, and went from 7.1% to 7.4% of sales. The fourth quarter was also affected by reorganization costs of € 2.1m. Net of those costs, EBITDA would have increased by 9.8%.

Other countries

Revenue

Fourth quarter revenue of € 166.4m shows a 6.5% decrease compared with the € 175.6m grossed in the same period of 2010 (–5.2% at current exchange rates), due to the closure of locations in Belgium and France and to reduced traffic, especially in the motorway channel.

EBITDA

Fourth quarter EBITDA came to € 4.9m, compared with € 7.2m in the same period of the previous year (–34.8%, or –31.8% at current exchange rates). The steep decline was caused  largely by the fact that in the final quarter of 2010, EBITDA benefited from the reclassification to income tax of the French value added tax, introduced in 2010 to replace the “taxe professionelle” that had been treated as an operating cost. Adjusting for that benefit of around € 1.7m, EBITDA would in any case  have decreased by 15.8% (–10.6% at current exchange rates), due to the drop in revenue.

28  Source: ATA, October-December 2011
29  Source: AISCAT, October-December 2011

Travel Retail & Duty-Free

Revenue

In the fourth quarter of 2011, sales in the Travel Retail & Duty-Free segment came to € 460.1m, an increase of 9.9% on the previous year’s € 419.2m (+9.8% at current exchange rates).  This achievement owes to the increase in passengers traveling outside Europe, who spend more on average per person.

Sales at Spanish airports were up 4.6%, from € 115.6m in the fourth quarter of 2010 to € 120.9m (against traffic growth of 1.5%), with Barcelona airport in the lead.

In the United Kingdom sales for the quarter totaled £191.6m, +9.3% on the same period of the previous year, thanks once again to the excellent performance of Heathrow shops.

Airports in other countries grossed € 104.2m for the quarter, an increase of 19.6% (+18.6% at current exchange rates).  Results were excellent at most of the airports served, despite the termination of some contracts. On a like-for-like basis, growth would have come to 24.7% (+23.6% at current exchange rates).

EBITDA

EBITDA for the final quarter amounted to € 55.5m, growing by 13.1% on the previous year’s € 49.1m, and rose from 11.7% to 12.1% of revenue thanks to the improved sales mix and the increase in passengers traveling outside Europe.

Capital  expenditure

Capex in the fourth quarter came to € 5.5m (€ 14.4m the previous year), amounting to 1.2% of sales.