Aldeasa profits squeezed amid robust sales

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Spanish duty-free store operator Aldeasa announced today that 2001 net profit fell 16% to Eur25.25m ($22.2m) down from Eur30.2m ($26.5m) in 2000. Total group sales showed a positive rise of 7.9% to Eur532.96m ($467.5m), while earnings before interest, taxes, depreciation and amortization fell 3.5% to Eur48.39m ($42.5m).

Aldeasa said sales at its core duty-free business in Spain, which accounts for 61% of turnover, rose 13% compared to 2000. But it said that following the September 11 terrorist attacks, fourth-quarter sales at larger Spanish airports dropped 1% on the year. Aldeasa attributed this to a reduced number of long-haul and business travellers concentrated mainly at Madrid, Barcelona and Valencia. Conversely fourth quarter sales continued to grow by 14% at airport shops with mainly tourist traffic in the Balearic Islands, compared with a 21% growth rate in the first nine months of the year.

In the Canary Islands, the main base of Aldeasa's duty-paid business, sales were also up by 13.7% for the year and the rate of sales growth increased. Many islands did not suffer a drop in passenger traffic following the events of September 11 as they were seen as alternative tourist destinations. At the beginning of November Aldeasa integrated its Canary Islands retail and food and beverage activities with local operator Canresa by creating a joint venture in which Aldeasa holds a 60% share.

Aldeasa said the modest decline in the growth rate was because most passengers in these airports were European tourists. But Aldeasa said that sales in its airport shops in Jordan, Chile and Venezuela had suffered from the contraction in passenger traffic and, in the case of Chile, from the economic crisis in Argentina. Total international airport sales dropped 23% in the fourth quarter, Aldeasa said.

During 2001 Aldeasa concentrated on growth and consolidation after divesting its logistics activities in 2000, which generated sales of over Eur30m ($26m). At the close of 2001 Aldeasa's airport division had 172 outlets in 11 countries.

Highlights of Aldeasa 2001 results are shown below:

Consolidated sales Eur533m / $468m (+7.9% on 2000)
Gross profits Eur47.0m / $41m
Net profits reached Eur25.25m / $22m

Airport retail sales Eur501.02m / $439.5m (+14%)
Sales at Spanish airports Eur398.02m / $349.1m (+13%)
Sales at international airports Eur80.34m / $79.5m (+15.9%)
Sales at palaces & museums Eur24.28m / $21.3m (+7.8%)