Aldeasa beats dollar effect to post 30% profits

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Aldeasa coo Alfonso Calderon attributes good first quarter results to tight cost management and international traffic growth

Madrid-based travel-retailer Aldeasa has announced a 30% increase in first quarter profits to Eu3.92m ($4.72m). Turnover for the first three months of the year grew to Eu122.27m ($147.31m), an increase of 7% on the same period last year. According to Aldeasa, the higher value of the Euro against the US dollar reduced sales growth by 1.7%

Aldeasa coo Alfonso Calderón told TRW that tight management of costs and traffic growth had contributed to the solid performance. ?We are pleased with our first quarter results,? he said. ?The increase in traffic has allowed us to grow sales but our own management controls have allowed us to increase margins and reduce costs as we did throughout 2003. This is reflected in the 30% increase in profits and we hope to continue in this same positive direction in 2004.It is also pleasing to see a strong recovery in our international business, up more than 34% in US dollars, as well as a substantial increase in sales to passengers using domestic flights in Spain.?

Duty free and travel retail activities in mainland Spain and the Balearic Islands grew by 8.3% to Eu69.37m ($83.58m), and the company stressed the strong growth of more than 20% in sales to passengers using domestic flights within Spain.

Sales at Aldeasa's international outlets enjoyed a strong quarter with a recovery in passenger traffic ensuring that turnover grew, up 15.3% to Eu18.44m ($22.22m). The company was even more pleased with international sales figures when analysed in US dollars, an increase of more than 34% in general and of 23% in spend per passenger.