Print Preview : Kuoni reports significantly increased turnover and profit

Kuoni reports significantly increased turnover and profit
The Kuoni Group looks back on a successful first half of 2008. Turnover rose 9.9% to CHF 2.2 billion. Earnings before interest and taxes (EBIT) rose significantly to CHF 13.9 million (+143.9%). The main contributors to these good results were the Scandinavian and Asian business units, along with Destination Management. The positive turnaround was also confirmed in Switzerland. In the United Kingdom, the travel market continues to be very difficult. Demand in this market has weakened at the same time.

Income Statement (CHF MILLION)	1.1.-30.6.2008	1.1.-30.6.2007	CHANGE in %
Turnover	2 228.3	2 027.2	+9.9
Gross profit	467.9	426.6	+9.7
Gross profit margin (%)	21.0	21.0
Earnings before interest and taxes (EBIT)	13.9	5.7	+143.9
EBIT margin (%)	0.6	0.3
Net result	21.3	3.5	+508.6
Cash flow	159.4	143.3	+11.2

2008 first-half highlights

Group turnover totalled CHF 2 228 million, a 9.9% improvement compared to the prior-year period (CHF 2 027 million). Organic growth stood at 9.5%; moreover, acquisitions (+6.1%) also contributed to the increase, while currency fluctuations (-5.7%), particularly in the United Kingdom, exerted a negative impact.
Earnings before interest and taxes (EBIT) improved markedly from CHF 5.7 million in the prior-year period, to CHF 13.9 million.
Cash flow from operating activities rose from CHF 143.3 million to CHF 159.4 million (+11.2%). Free cash flow stood at CHF 131.6 million, compared to the prior-year figure of CHF 130.1 million.
The strategy of growth in the specialist segment and Destination Management continued through acquisitions of "Golf Plaisir" (Scandinavia) and "Desert Adventures Tourism", Dubai. In Switzerland, the takeover of "Direkt Reisen" reinforced the direct travel market (consolidations to take effect from 1 July 2008).
The repositioning of Kuoni as a global travel brand got off to a successful start with the introduction of a contemporary logo, a new catalogue layout, and innovative product lines.

Theodore Koumelis - Thursday, August 21, 2008