Autogrill 30 April 2020 trading update

30 April 2020 results1

  • Revenue: €963m (€1,455m as of 30 April 2019), -33.9% at current exchange rates (-35.0% at constant exchange rates2) as a result of the ongoing escalation of the COVID-19 pandemic
    • Like for like performance of -35.3%year-to-date
    • Revenue in the month of April 2020 down 88% at current exchange rates
  • EBITDA (IFRS16) of €50.8m for the period (€178.6m as of 30 April 2019) and EBIT (IFRS16) of -€157.7m for the period (-€8.8m as of 30 April 2019)
    • The reduction in revenue has generated a corresponding reduction in EBITDA of €127.8m, which translates into a drop through3 of 26%, and a corresponding reduction in EBIT of €148.9m, which translates into a drop through3 of 30%. The extraordinary negative impact of the pandemic has been mitigated by the actions the Management has put in place to significantly reduce the cost base
  • Liquidity: circa €500m in cash and available facilities
    • Cash burn of about €100m in the month of April 2020, due to both the weak trading from travel restrictions and the partial unwinding of working capital from the first quarter of 2020. As the Group's mitigating initiatives gain traction, starting from June 2020 monthly cash burn4 is expected to level out to about €35-40m, assuming 2H2020 revenue at 75% of what they were in 2H2019
    • No sizeable debt maturities until 2023, after the successful refinancing of a €150m term loan originally expiring in 2021

May trading

  • Very early signs of recovery especially in Italy and Rest of Europe and particularly on motorways, after the partial lifting of the lockdown measures in the first half of May

COVID-19 mitigation plan

  • First priority is to protect the health and safety of employees and customers
  1. Preliminary and non-audited data
  2. Average €/$ FX rates:
    • April 2020 YTD: 1.0987
    • April 2019 YTD: 1.1329
  3. Drop through = EBITDA / EBIT variation (positive or negative) driven by the revenue variation (positive or negative)
  4. Cash burn is defined as Net Cash Flow (FCF + acquisitions, disposals and dividends) in a steady-state environment. Proceeds from the issuance of new debt / cash-out for debt repayment are not included in this figure.

1

  • The Group is taking appropriate measures to mitigate the financial and operational impacts of COVID-19 and preserve liquidity through rent relief and negotiations with the Group's lenders

Milan, 20 May 2020 - The Board of Directors of Autogrill S.p.A. (Milan: AGL IM) today reviewed and approved the consolidated revenue performance (preliminary and non-audited) for the four months ended 30 April 2020.

Gianmario Tondato Da Ruos, Group CEO, said: "As we have proved in the last couple of months, we quickly adapted our business to the changing traffic volumes. We implemented several actions to mitigate the financial and operational impacts of COVID-19 and now, as many countries are moving to reopen, we are getting ready for the next phase. During this period we implemented a new commercial offer adjusted to new consumers' needs, always with the health and safety of our employees and our customers in mind."

30 April 2020 Group revenue

Organic growth

€m

April 2020 April 2019

FX

Like for Like

Openings

Closings

Acquisitions

Disposals

Calendar

North America (*)

495.1

755.7

22.8

(271.0)

-37.9%

43.6

(42.3)

7.3

(20.9)

-

International

168.3

191.8

(0.4)

(26.3)

-14.5%

9.1

(12.2)

4.7

-

1.6

Europe

299.2

507.8

3.1

(190.2)

-39.1%

2.6

(25.2)

-

(2.3)

3.5

Italy

173.0

297.4

-

(118.3)

-40.8%

1.1

(8.8)

-

-

1.5

Other European countries

126.3

210.4

3.1

(72.0)

-36.6%

1.5

(16.5)

-

(2.3)

2.0

Total Revenue

962.6

1,455.3

25.5

(487.6)

-35.3%

55.3

(79.7)

11.9

(23.3)

5.0

(*) North America - m$

544.0

856.2

(0.8)

(297.8)

-37.9%

47.9

(46.5)

8.0

(23.0)

-

  • Group: like for like performance of -35.3%year-to-date
    • Negative impact on revenue from COVID-19 of approximately €530m
    • Revenue down 88% at current exchange rates in the month of April 2020
    • About 80% of total stores closed as of 30 April 2020
  • North America: like for like performance of -37.9%year-to-date
    • Negative impact on revenue from COVID-19 of approximately $310-315m
    • Revenue down 96% at current exchange rates in the month of April 2020
    • 80% of total stores closed as of 30 April 2020
  • International: like for like performance of -14.5%year-to-date

2

    • Negative impact on revenue from COVID-19 of approximately €30-35m
    • Revenue down 58% at current exchange rates in the month of April 2020
    • 82% of total stores closed as of 30 of April 2020
  • Europe: like for like performance of -39.1%year-to-date
    • Negative impact on revenue from COVID-19 of approximately €200-210m
    • Revenue down 86% at constant exchange rates in the month of April 2020
    • 53% of total stores closed as of 30 April 2020 (Italy: 36%; Other European countries: 81%)

Group revenue by channel

Organic growth

€m

April 2020

April 2019

FX

Like for Like

Openings

Closings

Acquisitions

Disposals

Calendar

Airports

629.6

894.5

21.1

(292.8)

-33.9%

46.5

(53.8)

11.9

-

2.0

Motorways

255.2

435.6

4.4

(150.4)

-37.6%

5.3

(20.8)

-

(20.9)

2.2

Other Channels

77.9

125.2

0.1

(44.3)

-37.4%

3.5

(5.1)

-

(2.3)

0.9

Total Revenue

962.6

1,455.3

25.5

(487.6)

-35.3%

55.3

(79.7)

11.9

(23.3)

5.0

€m

April 2020

April 2019

Change

Current FX

Constant FX

Airports

629.6

894.5

-29.6%

-31.2%

Motorways

255.2

435.6

-41.4%

-42.0%

Other channels

77.9

125.2

-37.8%

-38.2%

Total Revenue

962.6

1,455.3

-33.9%

-35.0%

COVID-19 mitigation plan

  • Autogrill has implemented necessary measures to protect the health and safety of its workers and customers as well as maintain the continuity of its business where allowed
  • Autogrill reacted promptly and efficiently, implementing targeted cost-control actions to mitigate the negative financial and operational impacts of COVID-19. Contingency plans actively involve the whole Leadership Team and will continue to be adapted in response to the evolving global situation
  • Labor cost: continued reduction of working hours in line with traffic decline, as well as use of relevant government initiatives in relation to social welfare
  • Rents:
    • reached agreements with a significant number of landlords worldwide to abate or defer rents and ongoing discussions for further relief

3

    • ongoing talks with the remaining landlords
  • Debt and liquidity:
    • fully drawn on committed revolving line of credit to increase cash position (€225m at Autogrill S.p.A. level and $200m at HMS Host Corp level available at the end of 2019)
    • advanced negotiations with all the Group's relationship banks and with HMS US Private Placement investors in order to obtain a waiver of the covenant tests
    • ongoing negotiations to further strengthen the Group's financial position in response to the currently volatile and challenging market conditions
    • taking advantage of available government assistance programs across all regions to access additional funding, as appropriate
  • Capex: investment spending plan currently under review, with all capex being reduced to the minimum necessary for the effective operation of locations
  • Additional measures, including cutting discretionary spend, hiring freeze and voluntary salary reduction as well as assessing all available options of government support to manage the lockdown period

Preparing for "Phase Two"

  • Short-terminitiatives:
    • first priority remains the health and safety of employees and customers
    • restart progressively as lockdowns and travel bans are lifted
    • initially main focus on domestic travel
  • Mid-terminitiatives:
    • protect the core business adjusting the cost structure, enhancing flexibility and evolving offering to respond to current disruptions and adapt to a "new normal" (e.g. new health and safety standards, evolving consumer attitude, future travel and transport patterns)

Outlook

  • Although we see early signs of some countries opening up, at the current time, and in light of a rapidly changing environment, it is extremely difficult to forecast the magnitude and duration of the impact of this global crisis and to provide guidance for the remainder of the current financial year
  • Autogrill will continue to monitor external events and manage the situation closely, and will keep the market updated on developments as appropriate

4

Revenue by geography

North America

Revenue by geography

$m

April 2020

April 2019

Change

Current FX

Constant FX

US

508.3

771.8

-34.1%

-34.1%

Canada

35.6

84.4

-57.8%

-57.4%

Total Revenue

544.0

856.2

-36.5%

-36.4%

Revenue by channel

$m

April 2020

April 2019

Change

Current FX

Constant FX

Airports

487.6

741.7

-34.3%

-34.2%

Motorways

53.2

109.0

-51.2%

-51.2%

Other channels

3.1

5.4

-41.8%

-41.8%

Total Revenue

544.0

856.2

-36.5%

-36.4%

5

International

Revenue by geography

€m

April 2020

April 2019

Change

Current FX

Constant FX

Northern Europe

106.4

132.0

-19.4%

-19.2%

Rest of the World

61.9

59.8

3.6%

3.6%

Total Revenue

168.3

191.8

-12.3%

-12.1%

Revenue by channel

€m

April 2020

April 2019

Change

Current FX

Constant FX

Airports

141.6

161.1

-12.1%

-11.7%

Other channels

26.7

30.8

-13.3%

-13.8%

Total Revenue

168.3

191.8

-12.3%

-12.1%

6

Europe

Revenue by geography

€m

April 2020

April 2019

Change

Current FX

Constant FX

Italy

173.0

297.4

-41.8%

-41.8%

Other European countries

126.3

210.4

-40.0%

-40.9%

Total Revenue

299.2

507.8

-41.1%

-41.4%

Revenue by channel

€m

April 2020

April 2019

Change

Current FX

Constant FX

Motorways

206.7

339.4

-39.1%

-39.3%

Airports

44.2

78.7

-43.9%

-44.7%

Other channels

48.3

89.7

-46.1%

-46.4%

Total Revenue

299.2

507.8

-41.1%

-41.4%

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***

The executive responsible for the drafting of the company's accounting documents, Camillo Rossotto, hereby declares pursuant to clause 2, art.154 bis, legislative decree 58/1998, that the accounting information in this release is in line with the Company's accounting records and registers.

***

Disclaimer

This press release contains forecasts and estimates that reflect the opinions of the management ("forward-looking statements"), especially regarding future business performance, new investments and developments in the cash flow and financial situation. Such forward-looking statements have by their very nature an element of risk and uncertainty as they depend on the occurrence of future events, including uncertainties on the duration and severity of the COVID-19 pandemic. Actual results may differ significantly from the forecast figures and for a number of reasons, including by way of example: traffic trends in the countries and business channels where the Group operates; the outcome of procedures for the renewal of existing concession contracts and for the award of new concessions; changes in the competitive scenario; exchange rates between the main currencies and the euro, esp. the US dollar; interest rate movements; future developments in demand; changing oil and other raw material (food) prices; general global economic conditions; geopolitical factors and new legislation in the countries where the Group operates and other changes in business conditions.

***

Definitions

Like for like revenue growth.

Like for like revenue growth is calculated by adjusting reported revenue for the two periods that are examined for acquisitions, disposals, exchange rate movements (translating the prior period at current year exchange rates), for new openings and closings and for any calendar effect and compares the current year results against the prior year

Like for like growth (%) = like for like change / revenue of the previous year adjusted to exclude i) revenue relating to those points of sales that are no longer active in the current year (closings and disposals), ii) exchange rate movements and iii) any calendar effect.

Some figures may have been rounded to the nearest million / billion. Changes and ratios have been calculated using figures in thousands and not the figures rounded to the nearest million as shown.

For further information:

Simona Gelpi

Lorenza Rivabene

Head of Group Corporate Communication

Group Corporate Development, M&A and Investor Relations Director

T: +39 02 4826 3209

T: +39 02 4826 3525

simona.gelpi@autogrill.net

lorenza.rivabene@autogrill.net

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Autogrill S.p.A. published this content on 20 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2020 18:13:03 UTC