gategroup reports increase in profitability

Despite an uneven global economic recovery and one-off events in Europe and North Africa, gategroup reported a 2010 net profit of CHF50.7 million, up 35.6% year-on-year. The company's strong increase in profitability was achieved on a 3.4% increase in revenue, although with currency fluctuations actual revenue actually declined 0.5%.

The company slashed its net debt to CHF144.4 million, down CHF298.1 million versus 2009, a decrease of 67.4%. During the year the company conducted a successful capital increase that resulted in net proceeds of CHF240.8 million.

gategroup remains cautiously optimistic about the outlook for 2011. It expects the US economy to continue moderate growth, Europe to exit the recession and for robust growth to continue in the Asia Pacific region. gategroup announced a revenue target for 2011 of approximately CHF3.0 billion, up from CHF2.7 billion last year. EBITDA margin is targetted at 8-8.5%, roughly the same as 2010.

Selected Duty Free daily share price movements (% change): 17-Mar-2011