HMSHost - North America ¹³

The sale of the last four US Retail contracts to the World Duty Free group was finalized on 28 February 2015. This business generated revenue of $ 7.4m in 2015 ($ 59m 2014) and is not included in the following discussion of performance.

 Change
(m$) Full Year 2015Full Year 20142014At constant exchange rates
Airports 1,978.9 1,904.6 3.9% 5.5%
Motorways 455.6 445.5 2.3% 5.5%
Other 34.9 45.9 -23.9% -23.9%
Total (excl. transferred US Retail business) 2,469.4 2,396.0 3.1% 4.9%
Transferred US Retail business 7.4 59.0 -87.4% -87.4%
Total 2,476.8 2,454.9 0.9% 2.7%
EBITDA 281.9 268.9 4.9% 6.5%
% on revenue 11.4% 11.0%

In 2015, North America produced revenue of $ 2,469.4m, showing an increase compared to $ 2,396m of the previous year (+4.9% 14 or +3.1% at current exchange rates).

Sales in the Airport channel rose by 5.5% (+3.9% at current exchange rates). The growth reflects strong performance at US airports 15, where sales on a comparable basis 16 increased by 6.7%, versus traffic growth of 5.1% 17. There was an increase in both the average purchase per customer, thanks to attractive new concepts, and in the number of transactions. Sales at Canadian airports decreased by 2.3% At constant exchange rates and 15.3% at current exchange rates, due to the unfavorable economy and (during the first half of the year) the remodeling of various locations.

Revenue from Motorways increased by 5.5% (+2.3% at current exchange rates), thanks to the United States (+5.1% on a comparable basis, versus traffic growth of 4.3%) 18 and new openings on the Ontario Highway in Canada.

EBITDA in North America came to $ 281.9m, up from $ 268.9m the previous year (+6.5% or +4.9% at current exchange rates). It rose from 11% to 11.4% of revenue, due largely to the reduced cost of goods sold, which owes to a more favorable sales mix and better purchase prices in various food categories. The result for the year includes restructuring expenses of $ 5.4m ($ 7.5m in 2014).

13. This division includes operations in the United States and Canada

14. The change is provided at both constant and current exchange rates to reflect the impact of the appreciation of the US dollar against the Canadian dollar, quantified as around $ 42m in sales

15. Accounting for around 90% of the channel’s revenue

16. Same locations and menus

17. Source: United States Dept. of Transportation, January–November 2015 18. Source: Group estimates on official data, January-December 2015

18. Source: Group estimates on official data, January-December 2015