Half-year profits boom at Aldeasa

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The retailer's profits increase by 21% with a strong international performance

Madrid based duty-free operator and travel retailer Aldeasa has announced a 21% increase in profits for the first six months of 2004.

The company recorded first half turnover up 5.7% to Eu285.59m, with EBITDA reaching Eu27.77m, an increase of 10.7% on the previous year. Net profit rose to Eu12.35m, up 21.1% on the previous year.

Aldeasa commented that the improvement in net profit was due to improvements in operating margins as a result of the introduction of more profitable categories and the continuing success of its cost-cutting programme, started last year.

Turnover at the core airport retailing business in Spain and the Balearic Islands rose 6.2% to Eu178.19m. Duty-paid sales in the Canary Islands for the first six months fell slightly by 2.5% to Eu42.68m, practically in line with the decrease noted in the first quarter. Aldeasa has been restructuring part of its business and sales have fallen mainly as a result of closure of non-profitable retail space.

Sales in international outlets controlled by Aldeasa enjoyed an impressive 20.9% increase to Eu38.71m. If measured in dollars the sales increase would have been in excess of 33%. Sales were especially strong in Jordan (+42.9% in euros, +59% in dollars) Mexico (+ 31.6% in euros, 46.6% in dollars) and in Chile (+ 13.5% in euros, + 26.3% in dollars).

The Palaces & Museums division enjoyed sales of Eu12.19m, an increase of 3.2% on the previous year.