Movenpick reports positive interim results for the half-year ending 30th June 2000.
The earnings before interest and taxes (EBIT) rose by CHF 7.3 million to CHF 12.0 million. The Group sales grew by 7.7% to CHF 448.1 million and the total sales (including management and franchise operations) grew by 5.7% to CHF 643.0 million. The net income before minority interests was CHF 8.9 million. If the positive economic environment persists, Movenpick remains optimistic expecting good business in the second half of 2000 and higher profits than in the second half of 1999.
In the year 2000, Movenpick continued with the development of promising products and the penetration of attractive markets with the associated financial investment. The focus on core businesses and products was pursued and all divisions managed to reach the interim targets of their strategic plans.
In the traditionally quieter first half of the year, the relationship between operating profit and Group sales was improved giving us a margin of 2.7% (previous year 1.1%). These values are still below Movenpick’s mid-term goals.
Global revenues from Movenpick Premium Food Products, especially Ice Cream and Coffee, rose by 29.3% to CHF 47.2 million. The sales in the home market, Switzerland, developed according to plan, but still lie slightly below last year’s equivalent figures. The growth was seen in the Asia-Pacific, where the markets Japan, Singapore, Australia and New Zealand excelled. At the beginning of the year, we faced logistics problems especially in Japan, which forced the postponement of the market launch by several months. Although now solved, this market is seasonal and usually weaker in the second half of the year. The acquisition of Chateau Creme Delight in New Zealand will boost growth and strengthen the Asia-Pacific market base.
The Business Unit Wine saw growth in revenues of 3.8% to CHF 56.7 million – a successful first semester. The new branches in Hanover and Stuttgart which were opened at the end of 1999 developed according to plan and the cooperation with Swissair and Sabena got off to a good start.
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Movenpick Produktions AG was able to increase sales to CHF 29.7 million – an increase of 13.4%. The strongest growth (18%) was seen in the sales to third-party companies in the premium hotel, gastronomy and catering industry.
The revenues for the Gastronomy Division’s own and leased operations grew by 3.5% to CHF 222.0 million. The revenues from management and franchise operations grew by 9.0% to CHF 83.5 million. The EBIT improved to CHF 2.8 million (CHF 2.2 million). The newly-opened franchise and management operations in Asia and Germany were a powerful boost to revenues. With the closure of unprofitable operations and the simultaneous rationalisation of administrative structures, savings and efficiency gains were made which will be more evident in the second semester figures. The strict implementation of operational measures allowed the operating margin to be slightly improved. Although the margin still lies below target, there will be further improvements in the second half of 1999. Assuming a favourable economic climate, we can expect further growth in the second half of 2000.
Movenpick’s hotel business grew encouragingly. The revenues from own and leased operations grew by 19.1% to CHF 118.6 million. The management operations revenues fell slightly by 3.7% to CHF 111.3 million. However, operating income (EBIT) grew by 160.5% to CHF 11.2 million. Thanks to operational progress, better occupancy rates at higher room prices (yield), profit was improved. Excluding the effect of the divestment of the remaining Karos hotels in South Africa, the growth was 30%. A management contract was signed for a Resort Hotel in Aqaba and a second Nile Cruiser Hotel Ship was commissioned. Growth by further management deals will be systematically pursued. At present over 30 hotel projects are being considered.
The detailed half-year report including all financial figures can be found and downloaded at the web-site www.moevenpick.com in the NEWS section.