gategroup reports revenues up but profit down in 2018

posted on 7th March 2019 by Justin Burns
gategroup reports revenues up but profit down in 2018

gategroup has reported that its revenues increased year-on-year (YOY) by 8.5 per cent in 2018 reaching CHF 4.9 billion (US$4.8 billion) – but profit fell more than 40 per cent to CHF 49.8 million from CHF 85.2 million in 2017.

The company also said earnings (EBITDA) rose 14.5 per cent YOY to CHF 343.9 million in 2018 and improved cash generation from operations was up YOY by 21.6 per cent to CHF 255.7 million.

gategroup said revenue growth was particularly strong in EME and APAC segments with the EME result supported by very good momentum in retail on board business as well as the consolidation of its position in the Scandinavian market.

The growth of APAC segment includes positive impacts from our market entry into the Republic of Korea as well as our enlarged contract with Virgin Australia.

gategroup renewed contracts in late 2018 with Virgin Australia and Delta, Air Line and in 2019 SWISS resigned.

Chief executive officer, Xavier Rossinyol said: “We remain focused on delivering value by collaborating with our customers to provide passengers with a superior culinary offering based on food trends, quality and freshness.

“This, in combination with delivering innovative products and services that address the needs of today’s discerning passenger, we are changing perceptions of what airline catering can be.”

He said the focus on “standardisation and efficiency” allows the company to deliver innovative products and services “consistently and cost-efficiently” to customers and passengers throughout our global network.

“In July, we were pleased to have Temasek and RRJ Capital join HNA as new investors in gategroup through a five-year mandatory exchangeable bond.

“Temasek and RRJ Capital bring to gategroup their investment expertise, financial strength and growth track record which complement the ongoing excellent contributions of HNA. We look forward to working with them to further accelerate the company’s growth,” Rossinyol added.