ARI overseas travel retail profits climb 11%

24th May, 2017 by Kristiane Sherry

Travel retailer Aer Rianta International (ARI) saw its 2016 profits from activities outside Ireland hit €24 million (US$26.8m), driven 11% higher on strong sales and margin improvements.

Sales climbed 17% as the first full-year of operations at Auckland International Airport in New Zealand drew to a close, with a “strong” trading performance also reported in Cyprus.

Within its native Ireland, ARI saw its 2016 retail and food and beverage sales, including by concessionaires, at The Loop, Dublin and Cork airports soar 11% to hit €302m (US$337.9m). ARI directly-operated stores saw sales increase by 10%.

Further afield, ARI’s Delhi International Airport activities posted “strong” results with revenues exceeding US$146m in 2016.

Canada and Barbados also saw sales growth, according to the retailer, while operations in New Zealand “performed in line with expectations”.

The Middle East also “performed well”, despite political instability and some hand-baggage restrictions.

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

“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.”

Tender wins during the 2016 financial year include a 10-year contract at Muscat International Airport, and a seven-year JV partnership at King Khaled International Airport in Riyadh. The retailer was also named as a preferred bidder at the new Terminal 3 at Soekarno-Hatta International Airport in Jakarta.

MacGowan continued: “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.”

This year’s results follow a strong 2015 for ARI when overseas profits increased by 19%.

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