Kuoni Group posted a clear improvement in results for the first nine months of the year. Turnover went up 26.2 % to CHF 3 809 million (prior year: CHF 3 019 million). Operating earnings (EBIT) improved by 47.7 % to CHF 45.8 million (prior year: CHF 31.0 million) despite the one-off cost of acquiring Gullivers Travel Associates (GTA). EBIT before the cost of the investment and cost-reduction programme, the planned amortisation of acquisition-driven intangibles, and the acquisition and integration of GTA came to CHF 113.2 million. The market environment was challenging, especially in Europe. Kuoni still achieved 3.3 % organic growth in turnover after adjusting for acquisitions and exchange rate influences. The increase in operating earnings is due to the continued growth of the Destinations Division (Kuoni Destination Management and GTA), VFS Global (administrative consular services) and the results posted in Scandinavia. Turnover of CHF 1 725 million was generated in the third quarter of 2011 (Q3 2010: CHF 1 263 million). Operating earnings came to CHF 78.3 million (Q3 2010: CHF 68.8 million). The market environment continues to be difficult, but turnover of around CHF 5 billion and an EBIT margin in the range of 2010s is still expected for 2011.
Highlights in the first nine months 2011
Turnover up 26.2 % to CHF 3 809 million in the first nine months of 2011 (prior year: CHF 3 019 million). Organic turnover up 3.3 %.
Despite one-off costs of CHF 15.5 million for the acquisition and integration of GTA, and CHF 25.5 million for the investment and cost reduction programme (prior year: CHF 23.9 million), operating earnings (EBIT) rose 47.7 % to CHF 45.8 million (prior year: CHF 31.0 million).
EBIT before the one-off costs for the acquisition and integration of GTA, for the investment and cost-reduction programme, as well as the planned amortisation of acquisition-driven intangibles came to CHF 113.2 million (prior year: CHF 80.6 million).
Net result improved to CHF 14.7 million (prior year: CHF 12.3 million).
Highlights third quarter 2011 (July-September)
Turnover rose 36.6 % to CHF 1 725 million (Q3 2010: CHF 1 263 million). Organic turnover development – 0.6 %.
Operating earnings (EBIT) increased by 13.8 % to CHF 78.3 million (Q3 2010: CHF 68.8 million) despite one-off costs for the acquisition and integration of GTA, and for the investment and cost reduction programme.
Destinations Division had a successful third quarter, with organic growth of 12.4 % and higher EBIT of CHF 32.8 million (Q3 2010: CHF 12.3 million).
VFS Global achieved turnover growth in third quarter to CHF 44.3 million (organically + 23.9 %).
New group structure from 1 October 2011 following acquisition of GTA, marking final stage of three-year investment and cost-reduction programme.
Peter Rothwell, CEO of Kuoni Group, said: ‘Kuoni’s strong position in the growing market for Destination Management services and in the visa services sector and in Scandinavia have had another positive effect on results in the third quarter of 2011. In an environment marked by
numerous negative external factors, we are pleased to have posted improved results for the first nine months of the year. They underline the effectiveness of Kuoni Group’s portfolio, with its strong focus on asset-light travel services in the growing FIT business and Asia.’
