Strong trading performances from Cyprus and India helped to fuel an increase in profit of +17% year-on-year across Aer Rianta International’s (ARI) overseas retail operations outside *Ireland, its annual results show.

ARI’s total share of after tax profits from its operations and joint ventures outside Ireland increased by 11% to €24m ($26.9m) [the rise includes ARI’s share of profits from its 20% stake in Dusseldorf Airport, which according to ARI “grew at a slower rate” than the group’s other international retail operations] bolstered by “strong like-for-like sales growth and an improvement in gross margins”, a statement read.

ARI’s retail joint venture in Cyprus, operating as CTC-ARI at Larnaca (pictured right) and Paphos airports, posted improved sales driven by an increase in Russian passengers to the islands.

Elsewhere, ARI’s venture at Delhi International Airport posted sales of more than $146m, while revenue growth in Canada and Barbados was supported by a successful first year of trading at New Zealand’s Auckland International Airport, and a good performance from the retailer’s Middle East operation despite continued geopolitical turbulence.

IRISH DIVISION SALES +11%

Total retail, food and beverage sales by concessionaires across ARI’s flagship bases at Dublin and Cork, including sales from The Loop, rose by 11% to total €302m ($339m) as a result of rising passenger volumes.

Sales from ARI’s directly-operated stores in Ireland increased by 10% in the same period.

ARI CEO Jack MacGowan said: “I’m very pleased with the group’s overall performance in 2016 in both our home and overseas markets.

“Despite a number of external challenges we demonstrated great resilience in driving continued profit growth. This was underpinned by a clear focus on our strategic goals to improve profitability and expand our retail estate by winning and seamlessly implementing new contracts.”

CONTRACT WINS

As reported, ARI successfully retained its main concession business at Muscat International Airport in 2016 for a further 10 years, with the new contract beginning in late 2017 upon completion of the airport’s new terminal building.

In addition, ARI also secured the contract to operate a number of speciality stores.

In Saudi Arabia, the travel retailer is expected to commence its contract to operate the duty paid concession at King Khaled International Airport’s Terminal 5 in Riyadh later this year.

“Retaining the key Muscat Duty Free contract alongside our success in acquiring the duty paid concession in Terminal 5 at King Khaled International Airport in Riyadh strengthens our position as the leading multi-location retailer in the Middle East,” added MacGowan.

“We are also making excellent progress on our ambitious plans for the P&C, sunglasses and fashion jewellery outlets at Abu Dhabi International Airport’s new Midfield Terminal.”

ARI’s local partner also secured the right to operate duty free concessions at Jakarta’s Soekarno-Hatta International Airport Terminal 3, which ARI may take a stake in.

*The international profit figure does not include the performance of ARI’s Irish operations, which is embedded into the overall performance of parent company Dublin Airports Authority (DAA).