ARI Annual Results 2013
ARI Records Profits of €29.4m outside Ireland and a Strong Trading Performance in Ireland during 2013
May 7, 2014
Aer Rianta International’s (ARI) operations outside Ireland made profits of €29.4 million in 2013, according to its parent company, Dublin Airport Authority, (DAA), which published its Annual Report today (May 7).
Last year’s profits were boosted by €11.3 million in exceptional items, principally arising from the disposal of ARI’s remaining 33.3% shareholding in Aerofirst, a Moscow-based airport retail company.
That transaction completed ARI’s planned withdrawal from Ukraine and Russia to focus on higher growth operations and opportunities in core markets. In this context, ARI increased its shareholding in its subsidiary company, ARI Middle East, from 61% to 71% during the period.
ARI’s profits outside Ireland in 2012 amounted to €27.4 million. ARI’s profits outside Ireland include the contribution from DAA’s 20% shareholding in Dusseldorf Airport in Germany, which is not separately reported.
The DAA Annual Report does not provide profit figures for ARI’s operations in Ireland, which are incorporated for regulatory purposes in the overall performance of the Group.
Sales at ARI Ireland’s own-operated retail stores increased by a “very strong” average of 5% across Dublin and Cork airports, notwithstanding a challenging retail environment in Ireland generally. Average spend per passenger also rose by 1%.
ARI Ireland’s total sales at Dublin and Cork Airports, including retail, and food and beverage sales by concessionaires, amounted to €214 million in 2013. This represents a 5% increase on the prior year on a like-for-like basis.
ARI’s sales at continuing locations outside Ireland rose by more than 1% last year. The Report notes that ARI’s joint venture operations across the Middle East performed strongly overall and that its partnerships in Beirut and in Cyprus “achieved very impressive performances, despite the impact of the civil war in neighbouring Syria on the former and continued national economic challenges on the latter.”
Delhi Duty Free, ARI’s joint venture operation in Delhi continued to enjoy strong sales growth during 2013. Turnover exceeded $120 million there last year after just three full years’ trading.
The Report states that India remains a key strategic growth market for ARI despite the withdrawal, after year end, from the Mumbai Terminal 2 duty-free concession ARI was awarded early in 2013. The decision to withdraw was taken “in the wake of delay and difficulties experienced in securing certain required regulatory approvals and licences in sufficient time to meet the project’s operational and financing deadlines.”
Highlighting some of the key features of ARI Ireland’s trading performance, the Report notes that the Shop & Collect service, which enables passengers to purchase goods on their outbound journey for collection on their return, saw sales rise by 16% during 2013. The award-winning Irish Whiskey Collection at Dublin and Cork airports enjoyed a further 12% increase in sales during the year.
ARI Ireland’s €8 million investment in upgraded retail and catering facilities at Dublin Airport’s Terminal 1, is on schedule for completion in the first half of 2015.