THE KUONI Group recorded a turnover of 2.08 billion Swiss francs (US$2.55 billion) for the first half of 2011, an 18.7 per cent increase over the same period last year.
Operating earnings (EBIT) improved to – 32.5 million Swiss francs from last year’s – 37.8 million Swiss francs, despite the 11.6 million Swiss franc-acquisition of Gullivers Travel Associates (GTA) (TTG Asia e-Daily, May 6).
GTA performed well in the first two months following the takeover, generating 358 million Swiss francs in turnover and 11 million Swiss francs in operating earnings (EBIT), excluding acquisition and integration costs.
Peter Rothwell, CEO of the Kuoni Group , said: “The purchase of GTA is an important transformational acquisition for Kuoni, which gives the company an excellent strategic position in a large and growing market.”
Underlying earnings (EBIT) for Kuoni stood at – 1.5 million Swiss francs, compared to last year’s – 1.8 million Swiss francs, boosted by organic turnover growth of 6.2 per cent – especially in Kuoni’s Destinations Division, where turnover increased by 15.0 per cent – and the development of VFS Global.
“The Group’s positive organic turnover growth of 6.2 per cent delivered an improved result. I’m very pleased in particular with the strong growth in the Destinations Division, in VFS Global, and in Scandinavia,” Rothwell said.
The Scandinavian market generated 4.5 per cent organic turnover growth, while VFS Global saw turnover increase by 23.3 per cent to 90 million Swiss francs. Operating earnings (EBIT) for VFS Global rose by 31.6 per cent to 20.4 million Swiss francs, and EBIT margin was 22.7 per cent.
Kuoni is expecting turnover in the range of five billion Swiss francs for the 2011 financial year as a whole, and an EBIT margin similar to 2010.
