Food & Beverage

The Food & Beverage business contribution to consolidated figures at 31 December 2010 is as follows:

(€m) 2010 2009 Change
2009 At constant
exchange rates
Revenue 4,027.8 3,787.3 6.4% 3.4%
EBITDA 438.9 433.6 1.2% (1.7%)
EBITDA margin 10.9% 11.4%

Capital expenditure 191.8 121.5 57.9% 51.3%
% of revenue 4.8% 3.2%


In 2010, Food & Beverage sales came to € 4,027.8m, compared with € 3,787.3m in 2009 (+6.4% or +3.4% at constant exchange rates). Performance was good for American airports and for Italian and French motorways. The railway channel benefited from new openings in Italy and Belgium.

At US airports, with passenger traffic up by 1.7%1, sales increased by 4.7% on a comparable basis thanks to an upturn in business fliers who spend more than average per person. Sales on Italian motorways in 2010 grew by 3.8%. Specifically, from January to December, a 0.4% rise in traffic2 produced a 0.7% increase in revenue on a comparable basis. Sales in other European countries were also brisk, rising by 6.5% (+4.4% at constant exchange rates), thanks to a strong performance in France and Belgium and the full-year contribution of the new locations opened in 2009 along German motorways.

1 Source: ATA, January-December 2010
Source: AISCAT, January-December 2010


In 2010 EBITDA for the Food & Beverage segment amounted to € 438.9m, an increase of 1.2% on last year’s € 433.6m (–1.7% at constant exchange rates), which however included € 3.8m in ordinary income attributable to prior years. Net of that income, the growth would have amounted to 2.1% (–0.8% at constant exchange rates). The EBITDA margin went from 11.4% to 10.9%. The main reason for that trend is the higher personnel expense in Italy and the United States, accentuated by the significant volatility in traffic (especially in the first half of the year), which prevented efficient resource planning. Another contributing factor was the cost of starting up new locations on motorways and in railway stations in Europe.

Change in Food & Beverage EBITDA margin – 20103

Change in Food & Beverage EBITDA margin

The above graph breaks down the EBITDA margin of the Food & Beverage segment into the main cost items, showing how the lower incidence of other operating costs made it possible to absorb only part of the increase in personnel expense and the shift in the sales mix in Italy towards less profitable goods.

3 Elimination of income pertaining to prior years

Capital expenditure

Capital expenditure in 2010 came to € 191.8m (€ 121.5m the previous year), an increase of 57.9% at constant exchange rates, and rose from 3.2% to 4.8% of revenue. Most of the expenditure concerned motorway locations in the United States (Pennsylvania and Delaware Turnpikes) and new openings at railway stations in Italy (Milan Central Station and Turin Porta Nuova).

HMSHost (North America and Pacific Region)4

To eliminate interference from fluctuations in the euro/dollar exchange rate and make it easier to interpret performance, figures are reported in millions of US dollars ($m).

($m) 2010 2009 Change
Revenue 2,546.4 2,478.4 2.7%
Airports 2,097.2 1,984.6 5.7%
Motorways 375.0 403.9 (7.2%)
Other 74.3 89.9 (17.3%)
EBITDA 314.5 307.4 2.3%
EBITDA margin 12.3% 12.4%
Capital expenditure 127.7 83.5 52.9%
% of revenue 5.0% 3.4%


In 2010 this area generated sales of $ 2,546.4m, a 2.7% increase with respect to the previous year’s $ 2,478.4m, thanks mainly to the recovery in airport traffic starting in September.

Performance by channel is described below:

  • Airports: with revenue of $ 2,097.2m, this channel enjoyed growth of 5.7% on the previous year’s $ 1,984.6m. On a comparable basis5, revenue at US airports6, increased by a significant 4.7% in comparison with traffic growth (+1.7%7). This confirms the Group’s ability to outpace the market, thanks in part to the increase in business fliers. Performance was especially good at the airports in Chicago, New York, and Charlotte, North Carolina.
  • Motorways: revenue of $ 375.0m was down 7.2% on the previous year ($ 403.9m), due mainly to the Group’s exit from the Florida Turnpike in June 2009 and the temporary closure for renovations of some service stations on the Pennsylvania Turnpike, the Delaware Turnpike and the Ontario Motorway. On the US roads served by the Group8, sales growth on a comparable basis came to 1.3%, slightly lower than the increase in traffic (+1.8%9).
  • Other channels (shopping malls): revenue in 2010 came to $ 74.3m, down from $ 89.9m the previous year (–17.3%), because of the Group’s exit from four locations and the temporary closure of a mall in Tennessee due to floods.


EBITDA amounted to $ 314.5m, compared with $ 307.4m in 2009 (+2.3%), or 12.3% of revenue (in line with the previous year). The increased turnover, improved channel mix (with a shift toward airports), better control over the cost of goods sold, and reduction in operating costs offset the rise in personnel expense, caused mainly be the reinstatement of bonuses that were severely curtailed the previous year.

Capital expenditure

Capital expenditure in 2010 totalled $ 127.7m, up from $ 83.5m the previous year, and rose from 3.4% to 5.0% of sales.
Work continued at service areas on the Pennsylvania Turnpike, and renovations were completed at the Delaware Turnpike locations. In the airport channel, most investments took place at Chicago, San José, Phoenix, Milwaukee and Anchorage in the United States, and at Amsterdam-Schipol in the Netherlands.

4 Under the trade name HMSHost, Autogrill Group Inc. (USA) manages mostly food & beverage services in North America, at Amsterdam’s Schiphol Airport and at other airports in Asia and Australasia
5 Same locations and offerings
6 Accounting for 83% of the channel’s sales
7 Source: ATA, number of passengers, January-December 2010
8 Because of renovations underway at locations along Canadian motorways, the contract for which was renewed during the year, the US locations generated practically all revenue in this channel
9 Source: Federal Highway Administration, January-December 2010 (stretches of road served by the Group)



(€m) 2010 2009 Change
Revenue 1,347.1 1,296.8 3.9%
Sales to end consumer 1,319.8 1,270.4 3.9%
Motorways 1,021.6 984.2 3.8%
Airports 93.3 88.4 5.6%
Railway stations and shipboard 41.6 37.3 11.6%
Other 163.2 160.5 1.7%
Other sales * 27.3 26.4 3.5%
EBITDA 147.5 160.4 (8.0%)
EBITDA margin 10.9% 12.4%
Capital expenditure 57.5 34.6 66.2%
% of revenue 4.3% 2.7%
* Including sales to franchisees, previously reported under the respective channels


Revenue generated in Italy in 2010 came to € 1,347.1m, an increase of 3.9% on the previous year’s € 1,296.8m.

Performance by channel is described below:

  • Motorways: sales in this channel grew to € 1,021.6m, from € 984.2m in 2009. The increase of 3.8% reflects 85 additional units, including 78 Esso stations (mostly on non-toll roads), acquired in mid-2010. From January to December, against traffic growth of 0.4%10 on the entire motorway network, sales increased by 0.7% on a like-for-like basis, and the mix shifted toward complementary products. Net of the additional locations, in fact, sales of primary goods (food & beverage and market sales) were roughly in line with the previous year, while sales of complementary goods (lottery tickets, newspapers & magazines and tobacco products) were up by 2.4%.
  • Airports: sales rose by 5.6%, from € 88.4m in 2009 to € 93.3m, thanks to a new contract at Palermo airport and an increase in revenue at Rome Fiumicino which, despite one outlet’s closure for renovations in the fourth quarter, more than compensated for the decline in sales at the two Milan airports (particularly Malpensa). On a like-for-like basis, sales were up by 2.9%, compared with traffic growth of 7.1%11, due to the negative performance at Linate and Malpensa in Milan.
  • Railway stations and shipboard catering: sales increased by 11.6% (from € 37.3m to € 41.6m) thanks to new openings at Milan Central Station and Turin Porta Nuova, as part of the “Grandi Stazioni” project, which more than offset the reduction in shipboard catering revenue due to the lower number of ferries served.
  • Other channels (shopping malls, high streets and trade fairs): revenue came to € 163.2m, compared with € 160.5m the previous year (+1.7%), on the strength of high street locations and the opening of new trade fair outlets.


EBITDA in 2010 was € 147.5m, a decrease of 8.0% on the previous year’s € 160.4m, which included € 2.0m in ordinary income attributable to prior years. Net of that income, the change would have amounted to –6.9%. EBITDA as a percentage of sales went from 12.4% to 10.9%. The decrease reflects the rise in personnel expense, due to the renewal of the collective national labour contract, a less favourable sales mix (with a higher incidence of less profitable complementary goods), and the cost of integrating the locations acquired from Esso Italiana starting in July 2010.

Capital expenditure

The Group invested € 57.5m in 2010 (€ 34.6m the previous year), amounting to 4.3% of sales (2.7% in 2009). The most significant projects concerned the Montefeltro Ovest, Villanova Sud and Alento Ovest areas in the motorway channel; Milan Central Station and Turin Porta Nuova in the railway channel; and Rome Fiumicino and Palermo in the airport channel.

10 Source: AISCAT, January-December 2010
11 Source: Group estimates on Assoaeroporti data, January-December 2010 – Airports served by the Group


Other countries

(€m) 2010 2009 * Change
2009 At constant
exchange rates
Revenue 760.1 713.9 6.5% 4.4%
Airports 442.3 416.2 6.3% 4.8%
Motorways 170.6 164.0 4.0% 0.9%
Railway stations 100.4 93.2 7.8% 6.3%
Other 46.8 40.5 15.6% 9.8%
EBITDA 54.2 52.8 2.6% 0.3%
EBITDA margin 7.1% 7.4%

Capital expenditure 38.8 28.9 34.1% 30.7%
% of revenue 5.1% 4.1%

* EBITDA differs from the one originally reported, having allocated corporate cost related to this area, equal to € 3.8m, originally reported under unallocated


Revenue earned in other countries came to € 760.1m in 2010, compared with € 713.9m the previous year (+6.5% or +4.4% at constant exchange rates), thanks to the full contribution of the German and French locations opened during the course of 2009.

Performance by channel is described below:

  • Motorways: Revenue rose from € 416.2m in 2009 to € 442.3m (+6.3% or +4.8% at constant exchange rates). main increases were recorded in France (+7.5%), which has benefitted since mid-2009 from the reduction in VAT on food & beverage and the consequent boost in consumption and, since February 2010, from the reopening of the Montelimar location after a complete overhaul; and in Germany, which enjoyed full-year sales of the 13 new outlets opened in 2009 and revenue from two more opened this year. Sales in the Netherlands (–6.4%), Spain (–9.7%) and Greece (–12.9%) continued to reflect the economic crisis and the recession.
  • Airports: Revenue climbed to € 170.6m, from € 164.0m the previous year, for an increase of 4.0% (+0.9% at constant exchange rates). Sales were up at Swiss airports (+6.2% in local currency) and in Belgium (+5.9%), but continued to decline in Ireland (–26.7%) and Spain (–7.1%).
  • Railway stations: revenue growth came to 7.8%, from € 93.2m in 2009 to € 100.4m (+6.3% at constant exchange rates). Positive results in France (+8.6%) and Belgium (+70.7%), which benefited from new openings in subway stations, more than compensated for the 8.6% decrease in Spain.
  • Other channels (highstreets and shopping malls): revenue came to € 46.8m, an increase of 15.6% with respect to last year’s € 40.5m (+9.8% at constant exchange rates), thanks in part to the December 2009 reopening of the Carrousel du Louvre locations in Paris after a complete restructuring.


EBITDA for the year was € 54.2m, slightly higher than the € 52.8m reported in 2009 (+0.3% at constant exchange rates), which included € 1.8m in ordinary income attributable to prior years concerning the final price adjustment on the sale of a business. Net of that income, the change would have amounted to +6.2% (+3.7% at constant exchange rates). As a percentage of sales EBITDA went from 7.4% in 2009 to 7.1%, reflecting the start-up of new locations in Germany and  the Czech Republic, as well as the increased personnel expense and the effect of the workers’ strikes in France (most notably in the month of April). The 2010 figure also benefits from a revision of the tax code in France; the “taxe professionelle” (€ 4.2m in 2009), classified under operating costs, has been replaced by two new taxes, the more significant of which has been classified under income tax since the fourth quarter in accordance with instructions received.

Capital expenditure

Capital expenditure came to € 38.8m (€ 28.9m in 2009), or 5.1% of sales (4.1% the previous year). Investments were concentrated in France, where the Group continued to modernise various motorway locations and completed the renovations at Carrousel du Louvre. In addition, renovation work was completed at the Ruisbroek (Belgium) locations, while in Zurich, Switzerland the Gran Caffè Motta was inaugurated in the city center and some airport outlets were refurbished.