LSG Group: Revenues and Earnings above the previous Year’s first Quarter
Neu-Isenburg, Germany – The LSG Group closed the first quarter of 2019 with consolidated sales of EUR 765 million, an increase of 6 percent despite the expiration of two hub catering contracts in South Korea and Italy in the summer and fall of 2018. Moreover, the company achieved an adjusted EBIT (earnings before interest and taxes) of EUR 2 million, which is 100 percent above the previous year’s first quarter.
“Coming in the typically weak first quarter of the year, we are very satisfied with this development,” said Dr. Kristin Neumann, Chief Financial Officer. “Adjusted for currency translation effects, we achieved growth in almost all of our regions and divisions, which shows that our success is based on a solid foundation that appears to extend from the positive results of 2018.”
Furthermore, important catering contracts with United Airlines and airBaltic were renewed in the beginning of the year, while the company’s lounge experts took over the management of the Japan Airlines lounges in Frankfurt. Additionally, the LSG Sky Chefs units in Brussels, Belgium, and Buenos Aires, Argentina, were each recognized with the much-sought-after QSAI (Quality and Safety Alliance Inflight Catering Program) awards as the best catering operations in EMEA and the Americas, respectively. A new catering facility was also opened in Nairobi, Kenya. Meanwhile, Retail inMotion has become the acknowledged market leader in the European onboard-retail segment and is successfully strengthening its strategic positioning in other regions.
“The dynamics of our industry evolve at an enormously high rate,” commented Erdmann Rauer, Chief Executive Officer. “Driven by global passenger growth and the increasing demand for sustainability, individuality and mobility, the expectations of our customers in every segment we serve are also rising. As a result, the continued expansion of our already extensive portfolio, with the support of digital processes and applications, remains our top priority.”