LONDON — Autogrill, which owns travel-retail businesses including World Duty Free, said Wednesday it expects its revenues to grow by almost 7 percent on average annually through 2010.
This story first appeared in the July 17, 2008 issue of WWD. Subscribe Today.
Its sales in 2008 are expected to hit 5.78 billion euros, or $9.15 billion at current exchange, according to the firm’s three-year business plan. Revenues are expected to come in at 6.23 billion euros, or $9.86 billion, in 2009 and 6.6 billion euros, or $10.45 billion, in 2010.
Autogrill’s consolidated earnings before interest, taxes, depreciation and amortization are expected to come in at 600 million euros, or $949.5 million, net of restructuring costs of approximately 17 million euros, or $26.9 million, this year. Average annual EBITDA growth is expected to be 11.1 percent through 2010.
When announcing its first-quarter 2008 figures in May, the company forecast full-year 2008 revenues of about 5.9 billion euros, or $9.34 billion, and EBITDA of approximately 630 million euros, or $996.8 million.
Gianmario Tondato Da Ruos, Autogrill’s chief executive officer, said during an investor day Wednesday that while he doesn’t foresee an important disruption to business occurring this summer, a potential slowdown could kick in from September when flights will be consolidated and higher ticket prices will come into effect.
“Our short-term objective is to reduce net financial indebtedness without compromising development and investments, an objective we will achieve thanks to the group’s strong cash flow generation capacity,” he stated. “The main economic indicators for the three-year period, 2008 to 2010, show revenue growth and a significant increase in EBITDA, a clear demonstration that our priority is operational efficiency.”
Synergies derived from acquisitions, including U.K. airport retailer World Duty Free, which, as reported, Autogrill bought earlier this year, are expected to deliver 45 million euros, or $71.2 million, annually starting in 2010. The company also said its consolidated revenues for the first half of 2008 are expected to increase by 25 percent, with organic growth forecast at more than 6 percent.