Highlights

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 for the first nine months of the year, in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations,” is presented on a single line of the consolidated income statement (“Net profit from discontinued operations [demerger]”) below the result from continuing operations. The figures in the table below, where not otherwise specified, refer to Food & Beverage only (continuing operations) and do not include the Travel Retail & Duty Free segment.

      Change
(€m)201320122012At constant exchange rates
Revenue 3,984.8 4,075.6 (2.2%) (0.3%)
EBITDA 314.0 327.6 (4.1%) (1.9%)
EBITDA margin 7.9% 8.0%    
EBIT 88.3 102.2 (13.7%) (10.3%)
EBIT margin 2.2% 2.5%    
Profit for the year 8.3 7,4 12.1% 58.7%
% of revenue 0.2% 0,2%    
Profit from discontinued operations 91.1 102.8 (11.4%) (8.8%)
Profit attributable to owners of the parent 87.9 96.8 (9.2%) (4.4%)
Earnings per share (E cents) *        
-  basic 34.7 38.2    
-  diluted 34.6 38.2    
Net cash flows
from operating activities
148.1 230.7    
Net investment 162.6 252.6 (35.6%) (33.8%)
% of net sales 4,1% 6,2%    

   Variazione
(€m)31.12.201331.12.201231.12.2012a cambi costanti
Net invested capital 1,117.5 1,149.0 (31.5) 6.2
Net financial position 672.7 933.2 (260.4) (238.1)

Condensed consolidated income statement (9)

Due to the proportional partial demerger of Autogrill S.p.A. to World Duty Free S.p.A. effective 1 October 2013, the profit of the Travel Retail & Duty Free business is shown separately on the line “Net profit from discontinued operations [demerger]” both for 2013 (first nine months) and 2012, in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”.
Unless otherwise stated, the Group’s results refer to the Food & Beverage and Corporate segment only.
See the section “Discontinued operations - demerger” for a description of the performance of the Travel Retail & Duty Free business.

Change
(€m)2013% of revenue2012% of revenue2012At constant exchange rates
Revenue 3,984.8 100.0% 4,075.6 100.0% (2.2%) (0.3%)
Other operating income 146.3 3.7% 125.3 3.1% 16.8% 17.0%
Total revenue and other operating income 4,131.1 103.7% 4,200.9 103.1% (1.7%) 0.2%
Raw materials, supplies and goods (1,331.4) 33.4% (1,366.2) 33.5% (2.6%) (1.1%)
Personnel  expense (1,318.2) 33.1% (1,331.8) 32.7% (1.0%) 0.8%
Leases, rentals, concessions and royalties (677.4) 17.0% (679.5) 16.7% (0.3%) 1.6%
Other operating expense (490.2) 12.3% (495.7) 12.2% (1.1%) 0.5%
EBITDA 314.0 7.9% 327.6 8.0% (4.1%) (1.9%)
Depreciation, amortization and impairment            
losses (225.8) 5.7% (208.7) 5.1% 8.2% 10.1%
Impairment losses on goodwill - - (16.7) 0.4% (100.0%) (100.0%)
EBIT 88.3 2.2% 102.2 2.5% (13.7%) (10.3%)
Net financial expense (50.5) 1.3% (71.1) 1.7% (29.0%) (28.4%)
Impairment losses on financial assets (2.4) 0.1% (2.2) 0.1% 8.8% 12.4%
Pre-tax profit 35.4 0.9% 28.9 0.7% 22.4% 37.0%
Income tax (27.1) 0.7% (21.5) 0.5% 25.9% 31.5%
Profit from continuing operations 8.3 0.2% 7.4 0.2% 12.1% 58.7%
Profit from discontinued operations            
(demerger) 91.1 2.3% 102.8 2.5% (11.4%) (8.8%)
Profit for the year attributable to: 99.4 2.5% 110.3 2.7% (9.9%) (5.4%)
- owners of the parent 87.9 2.2% 96.8 2.4% (9.2%) (4.4%)
- non-controlling interests 11.5 0.3% 13.5 0.3% (14.7%) (12.6%)

Revenue

The Group closed 2013 with consolidated revenue of € 3,984.8m, a decrease of 0.3% (-2.2% at current exchange rates) compared with the previous year’s revenue of € 4,075.6m.

Revenue was on the rise in North America, sustained by the positive traffic trend, which led to an increase in the number of transactions and in the average purchase per customer. In Europe, revenue went down as the negative trend in Italy – still suffering from a recession that is holding back traffic and consumer spending – offset the positive contribution from other countries, in particular Belgium, Germany and the UK.
Sales by channel are detailed below:

    Change
(€m)201320122012At constant exchange rates
Airports 1,989.6 2,020.6 (1.5%) 1.5%
Motorways 1,629.9 1,666.1 (2.2%) (1.3%)
Railway stations 157.8 153.1 3.0% 3.3%
Other 207.6 235.7 (11.9%) (11.2%)
Total 3,984.8 4,075.6 (2.2%) (0.3%)

The upturn in passenger traffic sustained the healthy performance of airports, where revenue increased by 1.5% 10. Although lower than like-for-like growth due to the sale of the North American travel retail business in the fourth quarter of 2013 to World Duty Free Group and Autogrill’s departure from some locations in the United States, overall growth in this channel and expansion at railway stations compensated for much of the weakness in the motorway channel and the steep decline in sales at other locations (high streets, trade fairs and shopping centres), many of which are no longer operated by the Group.

EBITDA

Consolidated EBITDA in 2013 amounted to € 314.0m, a decrease of 1.9% (-4.1% at current exchange rates) compared with the previous year’s €  327.6m, and went from 8% of revenue in 2012 to 7.9% this year.


Excluding non-recurring components 11 and the contribution of the US Retail division (sold in the fourth quarter of 2013) to results for the fourth quarter of 2012, EBITDA would have decreased by 3.1% (-5.3% at current exchange rates) and amounted to 7.9% of revenue; the change stems mainly from the rigidity of fixed costs for rent and labour, in the face of declining sales in Europe.

10. -1.5% at current exchange rates
11. 2013: net non-recurring expense of € 2.3m (€ 11.6m in reorganization costs, € 4.5m in demerger costs and € 13.8m in nonrecurring income); 2012: e 9.6m in reorganization costs 

Change in Food & Beverage EBITDA margin

evoluzione EBITDA Food Beverage Autogrill

Corporate costs 

Corporate costs in 2013 amounted to € 33.7m (€ 28.5m the previous year), increasing due to the centralization of some strategic functions and the costs incurred for the demerger of the Travel Retail & Duty Free business (€ 4.5m).

Depreciation, amortization and impairment losses 

These came to € 225.8m, up from € 208.7m in 2012 (+10.1%) 12. The change results from greater amortization and depreciation in Italy and North America and from an increase in impairment losses on property, plant and equipment and intangible assets (from € 7.4m in 2012 to € 15.7m).

12. +8.2% at current exchange rates

Impairment losses on goodwill 

There was no goodwill impairment in 2013, while in 2012 impairment losses of € 16.7m were recognised on the goodwill on Spanish Food & Beverage operations.

Net financial expense 

Net financial expense in 2013 came to € 50.5m, down from € 71.1m the previous year, due mainly to the fact that the amortization of interest rate hedging instruments was no longer a factor as such instruments were cancelled ahead of their original maturity (March 2013) during the debt refinancing of July 2011. Also contributing were the reduction in debt (thanks in part to the demerger, which brought in a dividend of € 220m from the Travel Retail & Duty Free business in April 2013) and the lower average cost of borrowing, which fell from 6.5% in 2012 to 5.4% due to the lower proportion of fixedrate loans.

Income tax

Tax increased from € 21.5m in 2012 to € 27.1m.
The tax charge for 2012 had benefited from an IRES (corporate income tax) refund in Italy of about € 12.5m, due to the recognition of the deductibility of IRAP (Italian regional business tax) pertaining to personnel expense for the years 2007-2011. The average tax rate, calculated excluding IRAP and CVAE 13 for both years (€ 9.2m in 2013 and € 10.5m in 2012), came to 50.4% in 2013 and 37.9% the previous year. The high tax rate in both years, compared with the theoretical rate, is explained primarily by the decision not to recognize deferred tax assets in Italy, due to the continued negative business performance in the country and the limited visibility as to when a recovery will occur.

13. IRAP, which is charged on Italian operations and whose basis is essentially EBIT plus personnel expense, came to € 7.4m in 2013 (€ 8.3m the previous year); CVAE, charged on French operations and calculated on the basis of revenue and value added, amounted to € 1.8m in 2013 (€ 2.2 m in 2012)

Profit from continuing operations (Food & Beverage)

In 2013 the profit from continuing operations was € 8.3m, a slight increase on the previous year’s € 7.4m; the decline in operating performance and the higher tax charge were more than offset by the reduction in financial expense.

Profit from discontinued operations (demerger) (Travel Retail & Duty Free)

Because of the demerger carried out on 1 October 2013, the Travel Retail & Duty Free business contributed to the Group’s profit for nine months, as opposed to twelve months the previous year.

In the first nine months of 2013 the net profit for this segment came to € 91.1m, while for the twelve months of 2012 it amounted to € 102.8m (€ 100.5m net of € 2.3m in non-controlling interests).

See section 1.5, “Discontinued operations - demerger (Travel Retail & Duty Free)” for a description of the segment’s performance.

Profit for the year attributable to the owners of the parent

The 2013 profit attributable to the owners of the parent amounted to € 87.9m, down from € 96.8m in 2012, due mainly to the reduced contribution of the Travel Retail & Duty Free business for the reasons explained above. Non-controlling interests in profit for the year came to € 11.5m (€ 13.5m the previous year).

     

9. “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 amount of which is classified as “Other operating income” in accordance with management’s protocol for the analysis of Group figures. This revenue came to  € 561.1m in 2013 (€ 609.2m in 2012) and the cost to € 542.7m (€ 588.5m the previous year)