Highlights

To better represent the performance of the various business segments, starting from the fourth quarter of 2014, the results of HMSHost are split into its two components: North America (United States and Canada) and International (Northern Europe, Middle East, Asia, Australia and New Zealand).

   Change
(€m)Full Year 2015Full Year 20142014At constant exchange rates
Revenue 4,369.2 3,930.2 11.2% 2.0%
Ebitda 376.2 316.2 19.0% 6.0%
Ebitda margin 8.6% 8.0%    
EBIT 151.9 118.6 28.1% 9.4%
Ebit margin 3.5% 3.0%    
Profit attributable to the ownersof the parent 64.2 25.1 155.5% 99.1%
Earnings per share (E cents)        
– basic 25.3 9.9    
– diluted 25.3 9.9    
Net cash flows from operating activities 297.2 209.1    
Free operating cash flows 101.5 51.8    
Net investment 211.6 196.4 7.7% -0.8%
% of net sales 4.8% 5.0%    
   
   Change
(€m)31.12.201531.12.20142014At constant exchange rates
Net invested capital 1,244.4 1,184.0 60.4 (21.6)
Net financial position 644.4 693.3 (48.9) (94.1)

Condensed consolidated income statement9

     Change
(€m)Full Year 2015% of revenueFull Year 2014% of revenue2014At constant exchange rates
Revenue 4,369.2 100.0% 3,930.2 100.0% 11.2% 2.0%
Other operating income 124.8 2.9% 130.5 3.3% -4.4% -5.7%
Total revenue and other operating income 4,494.0 102.9% 4,060.8 103.3% 10.7% 1.8%
Raw materials, supplies and goods (1,384.9) 31.7% (1,304.1) 33.2% 6.2% -0.9%
Personnel expense (1,436.4) 32.9% (1,296.6) 33.0% 10.8% 1.4%
Leases, rentals, concessions and royalties (755.0) 17.3% (668.5) 17.0% 12.9% 3.3%
Other operating expense (541.5) 12.4% (475.4) 12.1% 13.9% 5.4%
EBITDA 376.2 8.6% 316.2 8.0% 19.0% 6.0%
Depreciation, amortisation and impairment losses (224.3) 5.1% (197.6) 5.0% 13.5% 3.8%
EBIT 151.9 3.5% 118.6 3.0% 28.1% 9.4%
Net financial expense (37.9) 0.9% (44.4) 1.1% -14.6% -22.8%
Income (expenses) from investments (1.0) 0.0% 3.0 0.1% n,s, n,s,
Pre-tax Profit 113.0 2.6% 77.2 2.0% 46.3% 21.2%
Income tax (34.4) 0.8% (40.2) 1.0% -14.4% -26.7%
Profit attributable to: 78.5 1.8% 37.0 0.9% 112.4% 69.9%
– owners of the parent 64.2 1.5% 25.1 0.6% 155.5% 99.1%
– non-controlling interests 14.4 0.3% 11.9 0.3% 21.2% 2.8%

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 and costs from fuel sales, 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 amounted to E 469.6m in 2015 (absolute value E 531.2m in 2014) and the cost to E 447.9m (absolute value E 509.6m the previous year)

     

Revenue

The Group closed 2015 with consolidated revenue of € 4,369.2m, an increase of 11.2% (+2.0% At constant exchange rates) compared with the previous year’s revenue of € 3,930.2m.

Sales by channel are detailed below:

 

(€m)  Full Year 2015Full Year 2014Change
   2014At constant exchange rates
Airports 2,347.2 1,952.9 20.2% 5.3%
Motorways 1,678.0 1,622.4 3.4% -0.4%
Railway stations 174.2 175.7 -0.8% -2.9%
Other 169.7 179.2 -5.3% -10.1%
Total Revenue 4,369.2 3,930.2 11.2% 2.0%
   

In the Airport channel, sales increased by 20.2% (+5.3% At constant exchange rates), fuelled mainly by revenue at U.S. airports, new openings, and expansion in Northern Europe and Asia. In February the Group sold to World Duty Free Group the last four contracts from the US Retail division, which in 2015 generated residual sales of $ 7.4m ($ 59m in 2014). On a like-for-like basis, consolidated revenue in the airport channel increased by 22.6% (+7.6% At constant exchange rates).

In the Motorway channel, revenue increased by 3.4% (-0.4% At constant exchange rates) year-on-year, thanks to excellent performance in the United States which offset a decline in Italy due to the selective renewal of contracts during the 2013-2014 bidding season. On a like-for-like basis, revenue in the motorway channel increased by 5.3% (1.4% At constant exchange rates).

Sales in the Railway station channel decreased by 0.8% (-2.9% At constant exchange rates) with respect to the previous year: the openings in Spain in 2014 and the good performance of Milano Centrale railway station partially offset the impact of some temporary closures and the termination of various contracts at stations in France.

Performance in Other channels (-5.3%; -10.1% At constant exchange rates) reflects the closure of shopping center and high street locations in Italy and of outlets in North American malls.

EBITDA

Consolidated EBITDA in 2015 amounted to € 376.2m, showing an increase of 19% (+6% at current exchange rates) compared with the previous year’s amount of € 316.2m, and went from 8.0% of revenue in 2014 to 8.6% this year. The US Retail division (now sold) produced EBITDA of $ 5.7m in 2014.

The improvement concerns all geographical areas served by the Group and stems in large part from the proportionally lower cost of goods sold, thanks to a more favorable sales mix and a reduction in purchase prices in various food categories.

The trend in revenue and the efficiency gains were also good for personnel expense, which decreased as a percentage of sales. The figure for 2015 includes reorganization costs of E 11.7m (€ 11.8m the previous year).

The improvements in cost of goods sold and personnel expense as a percentage of revenue more than offset the proportional increase in other operating costs.

Change in EBITDA margin 

Change in EBITDA margin

                

Depreciation, amortization and impairment losses

In 2015 depreciation, amortization and impairment losses, amounted to € 224.3m, and increased by +13.5% (+3.8% At constant exchange rates), as a compared to the amount of € 197.6m in 2014. As a percentage of revenue they were essentially stable. The change is mainly attributed to the appreciation of the US dollar, since most capital expenditure takes place in the United States. In 2015, net impairment losses on intangible assets and property, plant and equipment, amounted to € 12.7m as compared to € 10.1m in 2014.

Net financial expense

Net financial expense in 2015 amounted to € 37.9m, with a decrease as compared to € 44.4m of the previous year, as the favorable trend in interest rates which compensated for the impact of the stronger US dollar, the currency in which the Group’s bond issues are denominated. Financial expense for the year also includes € 1.3m in banking fees not yet fully amortized on the € 500m loan that was paid back in advance in March 2015.

Income tax

Tax decreased from € 40.2m in 2014 to € 34.4m. The change mainly comes from the provision for deferred tax assets on fiscal losses in Italy (€ 5m), within the limit of deferred tax liabilities recognized in previous years, as well as the decrease in IRAP (regional business tax).

This item includes taxes charged on operating profit in Italy (IRAP) and France (CVAE). In 2015, under the new Italian law which allows the cost of permanently hired employees to be deducted for the purposes of IRAP, the tax amounted to € 1.1m (decreased as compared to € 6.8m in 2014). In France, CVAE of € 1.8m was in line with the previous year.

The average tax rate, excluding IRAP and CVAE for both years, went from 41.6% in 2014 to 28.5%.

Profit for the year

The 2015 profit attributable to the owners of the parent amounted to € 64.2m, showing an increase compared to € 25.1m in 2014.

Non-controlling interests amounted to € 14.4m (€ 11.9m in 2014).