Áreas profits +9% as it consolidates markets

By Doug Newhouse |

Áreas, the leading Spanish company in food services, retail distribution and traveller services has reported fiscal year results for 2010 of E.624m ($899.6m), representing a slight increase of 0.6% over last year, while profits rose by 9%.

The company also consolidated its leadership position in Spain, while becoming the third-largest operator in its segment in the US. It also become the main concession operator in the airports of Malaga, Alicante, Santiago, Asturias and La Palma, with 206 stores in Spanish airports.

The company reports that its international activity accounted for a third of its revenue; and new U.S. concessions are expected to bring in an additional $200m in 2015. At the same time, the company expects to almost double its investments in 2010-2011, to E.70m ($100.9m).

NEW PROJECTS – NEW CONCEPTS
The company said: “These positive results were obtained through the implementation of two new projects: the optimization of its internal organization and the implementation of a new sales strategy. This sales strategy is focused on creating a new brand portfolio, consisting of consolidated proprietary brands (La Pausa, Medas, Caffriccio, Divers, etc.) and nationally and internationally renowned franchised brands (Starbucks, Il Caffè di Roma, Subway, Burger King, Adidas, Adolfo Domínguez, etc.). 

“These new retail options are complemented by innovative concepts in the passenger traffic environment, such as yogurt stores developed with the help of Danone, or the collaboration of Michelin-star chefs on food menus offered at airports.”

The company consolidated its leadership position in Spain, and continued to grow in the Americas The success of the two new projects is underscored by the company’s positive results, thanks to the recovery of passenger traffic in airports, despite the stagnation or highway traffic in Spain.

STRENGTH IN SPAIN
Spain is Áreas largest market with 70% of total turnover and the company says it is now the largest store operator at Malaga airport, and the main food services provider in Alicante, Santiago, Asturias and La Palma airports. The addition of nine new stores in terminals 1, 2 and 3 of Barajas Airport has bolstered the company’s presence in the Spanish capital’s airport, one of the country’s main passenger traffic hubs.

Thirty per cent of the company’s revenue, or E.189m ($272m), comes from its foreign business activity. The most noteworthy market is the United States, where new concessions will ensure revenues of $200m in 2015.

 

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