LSG Group notes milestones in H1 report
LSG Group announced today it had achieved some important milestones in the realignment of its business model in the first half of 2018.
The company generated consolidated revenues of €1.6 billion (US$1.86 billion) in the first half of the year, a decline 2.8% year-over-year.
LSG Group attributed most of the decline to negative currency effects and its voluntary withdrawal from certain markets and customer contracts. Adjusted for currency-related factors, revenues grew by 4.4%. Changes in the group of consolidated companies increased revenue by €12 million (US$14 million). Adjusted EBIT for the period was €40 million (US$46.5 million), more than 200% higher than in the first half of 2017, primarily due to lower transformation costs, said the company.
"Our earnings situation continues to be burdened by the high costs of restructuring our activities in view of changing customer requirements," said Dr. Kristin Neumann, Chief Financial Officer, in yesterday’s announcement. "However, our operating business is developing very well worldwide, and we see great success in the global expansion of our onboard-retail activities in particular."
In the first half of the year, LSG Sky Chefs extended airline-catering contracts with United Airlines, American Airlines, LATAM and Cathay Dragon. Its Retail inMotion company won a contract to manage the onboard-retail activities for Etihad Airways. The company’s catering joint venture in Luanda, Angola, was extended ahead of schedule.
Other milestones include LSG Group’s facility in Brussels receiving the QSAI Excellence Award for the best catering facility in Europe. SPIRIANT received the IF Design Award for the development of a new premium porcelain concept. Also, the Culinary Excellence Team of the LSG Group development meals prepared for astronauts aboard the International Space Station (ISS).
LSG Group also received approval to build two regional production facilities, one in the Czech Republic and a second one in western Germany. Additionally, the company’s transformation into a process-oriented organization continues to advance.
"In view of the increasing passenger numbers worldwide and our very clear successes in creating innovative service concepts – both in classic catering and in the growing onboard-retail segment – we are and will remain well positioned," commented Erdmann Rauer, CEO and Chairman of the Executive Board. “We are very focused on investing in the restructuring of our activities and the expansion of our portfolio in order to successfully and sustainably secure the long-term future of the LSG Group."