Elior reports airport business turnaround

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Paris-based operator Elior, the third largest food & beverage concessionaire at European airports, motorway outlets and tourist attractions has announced annual turnover up by 12.7% to ?2,329m ($2,329m) for the year 2001/2002

Operating income increased by around 25% for the second half.

Airports account for more than 10% of Elior sales. The group acquired a 60% direct and indirect interest in Areas of Spain and subsequently acquired (via Areas) the Mexican duty-free operator Latinoamericana Duty Free last year (TRW 15/05/01). Latinoamericana with 130 stores is the parent company of Operadoras de Aeroboutiques and Deor, the operator of gift shops and convenience stores in Mexico City hotels and Mexican resorts. Elior's Spanish airport concession business merged with Areas in April 2001. In the year-ended September 2002 Elior's business outside France, primarily in Spain and Latin America, grew by 33.5%.

This year Elior won the concession contract for catering at terminal two E at Paris Charles de Gaulle airport. This contract is for ten years with estimated turnover for the period of ?140m ($140m). Elior also won a foothold in the UK airport market with the contract for catering services at BAA's Aberdeen airport for seven years, with an estimated turnover of ?22m ($22m) for the period.

The company said that in the fourth quarter of the year there was a marked turnaround in airport business, with sales returning to growth in August. Turnover for total concession catering including motorways and museums reached ?759m ($759m), an increase of 21.1%.