Travel Retail & Duty-Free

The overall contribution of Travel Retail & Duty-Free operations to the main consolidated results for the year is summarised below:

(€m) 2010 2009 Change
2009 At constant
exchange rates
Revenue 1,675.7 1,538.0 9.0% 7.0%
Airports 1,631.1 1,500.4 8.7% 6.8%
Spain 493.8 474.6 4.0% 4.0%
United Kingdom 785.1 708.4 10.8% 6.7%
Other countries 352.2 317.4 11.0% 11.0%
Other * 44.6 37.7 18.4% 17.7%
EBITDA 193.6 156.9 23.4% 21.2%
EBITDA margin 11.6% 10.2%  
Capital expenditure 28.0 21.8 28.2% 25.9%
% of revenue 1.7% 1.4%  
* Includes wholesales and revenue from “Palacio y Museo”, previously reported as airports channel


Travel Retail & Duty-Free closed the year with revenue of € 1,675.7m, an increase of 9.0% with respect to the previous year’s € 1,538.0m (+7.0% at constant exchange rates), showing a strong performance at most of the airports served. This is a particularly good result considering the many factors in 2010 that negatively influenced airport traffic. These include the exceptional cold spell in the United Kingdom and Northern Europe in both January and December 2010, the volcanic eruption in Iceland, and the repeated strikes by British Airways and Iberia flight personnel and by air traffic controllers.
The Group estimates that these disruptions reduced sales by more than € 18m.

Region-by-region performance is described below:

  • Spain: revenue for 2010 came to € 493.8m, up from € 474.6m in 2009 (+4.0%), compared with traffic growth of 2.7%1. Performance at Barcelona and Madrid was especially strong, thanks in part to the increase in traffic to non-European destinations; sales at Barcelona airport were up by 23.7% to € 85.2m, against traffic growth of 6.5%, while sales at Madrid-Barajas grew by 5.7% to € 171.0m, with traffic up by 2.9%2.
  • United Kingdom: revenue in the UK climbed from £ 631.2m3 in 2009 to £ 673.4m (+6.7%), despite a 3.1% decline in traffic4, due primarily to the 9.2% increase in sales at Heathrow shops (where traffic dipped by 0.2%5). Despite the overall decrease in traffic, the greater numbers of passengers travelling to non-European destinations and the optimisation of retail offerings at the different shops and airports allowed a substantial increase in sales.
  • Other countries6: sales came to € 352.2m for the year, compared with € 317.4m in 2009 (+11.0%), with good results in all countries despite the Group’s exit from a number of stores. Top performers were Canada, with its increased connections to Asia; Mexico, which has recovered well from the tourism slump of 2009 caused by the swine flu outbreak; Peru; and Jordan. Chile, too, enjoyed significant growth despite the earthquake that caused major damage to airports in February.

1 Source: AENA, January-December 2010
2 Source: AENA, Madrid-Barajas Airport, January-December 2010
3 This figure differs from the originally published £ 636m due to the reclassification of wholesale sales
4 Source: BAA, Manchester Airport and Gatwick Airport, January-December 2010
5 Source: BAA, January-December 2010
6 Mexico, Jordan, Chile, Canada, Kuwait, Peru, United States, Portugal, Dutch Antilles, France, Colombia, Cape Verde, Panama, Sri Lanka, India and Maldives


EBITDA for the Travel Retail & Duty-Free business grew by 23.4% in 2010, from € 156.9m to € 193.6m (+21.2% at constant exchange rates). The improvement is even greater considering that in 2009, this segment had benefited from € 7.5m in ordinary income pertaining to previous years. Net of that income, the change would have amounted to +29.6% (+27.2% at constant exchange rates). The EBITDA margin rose from 10.2% to 11.6% of revenue, reflecting a more favourable sales mix (which at European airports profited from increased traffic to destinations outside the continent), as well as the synergies achieved from further integration of the retail units and the streamlining of operating costs.

Change in Travel Retail & Duty-Free EBITDA margin – 20107

Change in Travel Retail & Duty-Free EBITDA margin – 2010

7 Elimination of income pertaining to prior years

Capital expenditure

Capital expenditure in 2010 came to € 28.0m (€ 21.8m the previous year) and rose from 1.4% to 1.7% of revenue. Most expenditure was concentrated on the Malaga, Madrid and Ibiza terminals in Spain and on shop renovations at London Heathrow, Birmingham and Manchester in the UK. Shops were also expanded and refurbished in Jordan and in Vancouver, Canada.

Group reorganisation

In 2010 the Group completed the reorganisation process, in particular by eliminating overlaps between companies active in the different sectors. One purpose of this is to make the management of each business unit fully accountable for its economic and financial performance, through the separate allocation of debt, borrowing costs and tax effects.

In addition to the results discussed above and the segment reporting contained in the notes to the financial statements, for 2010 it was therefore possible to produce a complete set of accounts for the Travel Retail & Duty-Free business, as summarised in the tables below.

Condensed income statement
(€m) 2010 % of revenue
Revenue 1,675.7 100.0%
Other operating income 31.4 1.9%
Total revenue and other operating income 1,707.1 101.9%
Raw materials, supplies and goods (733.8) 43.8%
Personnel expense (180.6) 10.8%
Leases, rentals, concessions and royalties (505.7) 30.2%
Other operating costs (93.4) 5.6%
EBITDA 193.6 11.6%
Depreciation, amortisation  
and impairment losses (115.4) 6.9%
EBIT 78.2 4.7%
Net financial expense (44.0) 3.6%
Net impairment losses on financial assets 1.3 0.1%
Pre tax profit 35.5 1.1%
Income tax (7.1) 0.2%
Profit attributable to: 28.4 7.0%
– owners of the parent 26.9 7.9%
– non-controlling interests 1.6 0.1%
Reclassified statement of financial position
(€m) 31.12.2010
Intangible assets 1,344.8
Goodwill 582.1
Concessions, licences and similar rights 651.8
Trademarks 105.8
Other 5.0
Property, plants and equipment 114.9
Financial assets 8.3
A) Non-current assets 1,468.0
Inventories 121.1
Trade receivables 19.1
Other receivables 22.9
Trade payables (200.5)
Other payables (78.9)
B) Working capital (116.3)
C) Invested capital, less current liabilties 1,351.7
D) Other non-current non-financial assets and liabilities (128.5)
E) Net invested capital 1,223.1
Equity attributable to owners of the parent 497.2
Equity attributable to non-controlling interests 1.1
F) Equity 498.4
G) Net financial indebtedness 724.8
Total 1,223.1
Statement of cash flows and net financial position
(€m)  2010
Opening - net cash and cash equivalents (2009 exchange rate) (1,584.9)
Exchange rate difference (19.2)
Opening - net cash and cash equivalents (2010 exchange rate) (1,604.0)
Pre tax profit tax and net financial expense for the period 79.9
Amortisation, depreciation and impairment losses on non-current assets, net of reversals 115.4
Adjustments and (gains)/losses on disposal of financial assets (1.3)
(Gains)/losses on disposal of non-current assets 0.1
Change in working capital in the year 51.3
Net change in non-current non-financial assets and liabilities (30.3)
Cash flow from operating activities 215.1
Taxes paid (23.3)
Interest paid (46.3)
Net cash from operating activities 145.5
Acquisition of property, plant and equipment and intangible assets (28.0)
Proceeds from sale of non-current assets 0.4
Acquisition of investments from Autogrill (25% Vancouver) (1.0)
Net change in non-current financial assets (0.3)
Net cash flow used in investing activities (28.9)
Cash flow for the year from continuing operations 116.7
Share capital increase 400.0
Cash from Flight business disposal 165.4
Cash from Autogrill Schweiz A.G. disposal 150.2
Cash from Autogrill Participaciones S.A.U. disposal 47.0
Cash flow for the year from extraordinary activities 762.6
Closing - net cash and cash equivalents (724.8)

As shown in the statement of cash flows, in addition to the cash generated by ordinary operations, the extraordinary transactions completed at the end of the year managed to halve the net debt of the Travel Retail & Duty-Free segment (i.e. the group headed up by Autogrill España S.A.U.).

Cash flow from operating activities was reduced by € 10.3m for payment of the back rent taken on with the acquisition of Aldeasa (2005); the remaining € 17.6m will be paid in 2011-2012.

Financial expense incurred in 2010 by the Autogrill España group therefore correlates with average indebtedness for the year that was nearly double the year-end debt.