Discontinued operations - demerger

Due to the proportional partial demerger of Autogrill S.p.A. to World Duty Free S.p.A. with effect from 1 October 2013, the profit of the Travel Retail & Duty Free business is shown separately in the consolidated income statement on the line “Net profit from discontinued operations (demerger)” for both 2013 and 2012. To facilitate comprehension of the segment’s performance in the first nine months of 2013, income statement figures are detailed below.

Change
(€m)  First nine months 2013   % of revenue  First nine months 2012   % of revenue  2012  At constant exchange rates   2012  % of revenue 
Revenue   1,531.4   100.0%   1,517.2   100.0%   0.9%   3.9%   2,002.0   100.0% 
Other operating income    18.8   1.2%   20.1   1.3%   (6.5%)   (6.3%)   25.4   1.3% 
Total revenue and other operating income    1,550.2   101.2%   1,537.3   101.3%   0.8%   3.8%   2,027.4   101.3% 
Raw materials, supplies and goods    (624.8)   40.8%   (624.8)   41.2%   (0.0%)   2.1%   (820.0)   41.0% 
Personnel expense    (154.2)   10.1%   (152.4)   10.0%   1.2%   3.4%   (205.9)   10.3% 
Leases, rentals, concessions and royalties    (488.2)   31.9%   (464.8)   30.6%   5.0%   7.6%   (615.5)   30.7% 
Other operating costs    (89.0)   5.8%   (91.3)   6.0%   (2.5%)   (0.6%)   (123.7)   6.2% 
EBITDA   194.1   12.7%   204.1   13.4%   (4.9%)   (2.6%)   262.3   13.1% 
Depreciation, amortization and impairment losses    (65.9)   4.3%   (85.1)   5.6%   (22.5%)   (21.2%)   (112.7)   5.6% 
EBIT   128.1   8.4%   119.0   7.8%   7.7%   10.8%   149.7   7.5% 
Net financial expense    (23.7)   1.5%   (14.4)   0.9%   64.3%   66.7%   (18.5)   0.9% 
Impairment losses on financial assets    2.2   0.1%   1.7   0.1%   28.9%   28.9%   1.8   0.1% 
Pre-tax profit    106.6   7.0%   106.3   7.0%   0.3%   3.3%   133.0   6.6% 
Income tax   (15.6)   1.0%   (22.9)   1.5%   (32.1%)   (30.2%)   (30.2)   1.5% 
Profit for the year attributable to:    91.1   5.9%   83.4   5.5%   9.2%   12.6%   102.8   5.1% 
 -owners of the parent    89.3   5.8%   81.6   5.4%   9.4%   12.9%   100.5   5.0% 
 -non-controlling interests    1.7   0.1%   1.7   0.1%   (1.6%)   (1.6%)   2.3   0.1% 

Revenue

In the first nine months of 2013, revenue in the Travel Retail & Duty Free business amounted to E 1,531.4m, compared with € 1,517.2m (+3.9%) in the same period in 2012 (+0.9% at current exchange rates). Good results in the United Kingdom and outside Europe compensated for the weak performance in Spain, caused by the decline in traffic and the closure of some outlets at Madrid airport.

EBITDA

In the first nine months of 2013 EBITDA in the Travel Retail & Duty Free segment came to € 194.1m, falling by 2.6% (+4.9% at constant exchange rates) compared with the corresponding period of the previous year’s € 204.1m, due primarily to the increase in rent further to the renewal of Spanish airport concessions and the start-up of activities in Düsseldorf, Germany and Los Cabos, Mexico. The EBITDA margin decreased from 13.4% to 12.7%.

Depreciation, amortization and impairment losses

Depreciation, amortization and impairment losses in the first nine months of 2013 came to € 65.9m, down from € 85.1m the first nine months of the previous year, due in part to a € 9.3m decrease in amortization of the Spanish concessions when their useful life was recalculated further to the extension until 2020 obtained at the end of 2012.

Net financial expense

In the first nine months of the year financial expense came to € 23.7m, compared with € 14.4m in the corresponding period of 2012. The difference is explained by higher debt and the portion of bank fees (€ 5.2m) paid in 2011 on loans cancelled as part of the refinancing process, completed on 5 June 2013, which had not yet been amortized as of that date.

Profit for the year

Profit for this segment in the first nine months of the year was € 89.3m (€ 81.6m for the same period in 2012). Profit attributable to non-controlling interests amounts to € 1.7m, in line with the corresponding period of the previous year.